When goods or items are traded in the international platform, WCO or World Custom Organization, has created the HTS Code or the Harmonized Tariff System, in order to allow an easier way of knowing what an item or good is just through a single glance. Whether it be a case of importing or exporting goods or items, the one responsible for it, should be able to assign the HTS Code that rightfully fits an item or Goods, based on the country’s HTS Code. If you are engaged on a business that’s preparing to go to the international platform, knowing more about HTS code will definitely be a great boon for you and there’s no doubt that the details below would be very helpful in your endeavor.
HTS Codes have become a very vital existence in international trading and in fact, over 200 countries across the globe are already using it in varieties of transactions. What makes HTS Codes an effective system, is the fact that the 7-10 digits composing it stands for something in every country. HTS Code is divided into two parts with the first part referring to the first 6 digits of the code, which stands for the description of the item and the second part being unique, depending on what country you’re in.
You should also understand that the responsibility of giving your items with an HTS Classification, falls into your hands and it is important that you’re accurate in doing so. Accuracy is extremely important because failing to do so would incur losses and charges to your company, which is why some also prefers doing HTS codes themselves rather than hiring third party companies to do the job for them. Though many are against them, you can still try out seeking the help of experts in HTS Codes and just make sure that you give them description about your items, with utmost preciseness to ensure topnotch results.
Aside from classification of the goods or items, there’s a meaning behind why HTS Code is referred to as a Tariff system, and that’s because the codes are also a way to assign the costs to be paid for each item that’s imported and exported. There are two scenarios which may happen if you put in the wrong code and that’s either paying too low of an amount or too high for the item you’re trading but, regardless of where you land between the two, you’ll still be subjected to penalty payments which will certainly hurt your bankroll as a business.
You do not have to worry however, because as long as the item is still not charged, providing your HTS Codes is still something that you can fix. You can go back to the start and refund the transaction you’ve done, through filing the Post-Entry Amendment.