How Customs Categorization is Defined?

 

The numerous diverse names for different classifications, which partly overlap, add to the complexity of correctly classifying goods:

 

●        HTS-code (Harmonised Tariff System)

●        Code for commodities

●        HS-code (Harmonised system)

●        Statistical Code Customs Code

●        Customs classification is created once you have determined the relevant code for a product. The Harmonised Tariff System (HTS) / Combined Nomenclature classifies commodities based on categorization standards (GN). The World Customs Organization maintains this classification system. Almost everywhere throughout the world, the HTS system is employed. The GN system is an extension of the HTS system, which is used expressly in the European Union.

 

Customs classification codes can and will change.

 

Customs authorities provide modifications to the customs classification codes regularly. These revisions may affect the existing classification of your products. The HTS system is updated twice a year with minor updates, while a large update is performed every five years. There may also be revised laws and regulations that affect the classification of your items.

 

It is critical to stay current on these developments and their implications for the classification of your goods.

 

Record the procedure

Simply selecting the correct code is insufficient. We also recommend that businesses document the process of classifying a product. During an internal or external audit, a simple report like this illustrates why you employ a particular code.

 

The following information should be included in the report:

 

●        The number assigned by customs

●        The categorization criteria that were used

●        A description of the classification.

●        Keep in mind that the classification method may alter depending on the product, such as when it is a composite good.