Why Should You Care About Harmonized System Codes? Why Should You Care About Harmonized System Codes?

Correctly classifying one's commodities will save your customers time in customs and help you grow your global eCommerce business. If you want to sell internationally, all you have to do is jump on board and at the very least understand the rules and intentions. The World Harmonized system code the Harmonized System (HS) in 1988 to improve import/export efficiency. A 4 to 10-digit code is assigned to every item conveyed between member countries.

 Even though the Harmonized System (HS) or the Global Harmonized System (GHS) is a socialist society (countries choose which recommendations to implement), it is used by every major player. All BRIC (Brazil, Russia, India, and China) markets, the Eurozone, Australia, South Africa, and the United States are included.

 The first four digits represent a broad category, such as apparel, while the next two digits represent a subheading, such as hats. The first six digits are used to classify products. Businesses from participating countries must use all 4 and 6-digit provisions, as well as international rules and notes, without exception, to ensure harmonisation, but they are free to adopt additional subcategories and notes.

 Depending on the country, the next 2 to 4 digits represent a tariff code.

 The last two digits are optional and can be decided to add for statistical reporting if necessary, bringing the total number of digits on entry documents to ten.

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 The hazardous materials industry was primarily impacted by changes to the global harmonisation System (GHS) in 2009. To reduce workplace casualties, better language and signage were required, and the Occupational Safety and Health Administration estimates a $500 million cost savings due to reduced review time. The new legislation, which affects 43 million employees worldwide, is expected to reduce deaths and injuries.

 Harmonized system code is a very important aspect.