Tariff Classification is the process of determining the accurate tariff code for internationally traded goods. Classification of goods impacts customs and excise duties, import VAT, import and export restrictions, and preferential duties.
Normally, companies depend on the freight forwarders for tariff classification. However, it is important to understand that correct classification is the responsibility of the importer or exporter.
Harmonized System (HS) is the basis for the international coding system, which includes general rules for interpretation (GRI) that define how goods shall be classified in the tariff schedule.
The Harmonized system and customs tariff is divided into 21 sections and 97 chapters. The goods must be classified in the right 4-digit HS heading, then the appropriate 1-dash subheading, followed by 2-dash subheading and so on.
In order to classify the goods correctly, you must have:
- Exact information about the product to be classified
- Knowledge of the technique of classification and customs tariff.
You can use the Semantics3 HS Code classification App or API to auto classify your product and find out a HS code. Sign Up Here.