Tariff Code
Tariff code, also known as a harmonized system code or HS code, is a standardized numerical code assigned to specific products to identify their nature, composition, and applicable customs duties.
Tariff codes bring clarity and consistency to the complex process of importing and exporting goods. By assigning a specific code to each product, customs authorities can easily identify its nature, composition, and other relevant details. This streamlined approach helps prevent misunderstandings and discrepancies, reducing delays and errors in customs clearance procedures.
Structure and Components of a Tariff Code
Sections: Tariff codes have numbered sections. These sections categorize products by industry. Section I includes live animals, whereas Section II includes vegetables.
Chapters: Each division has chapters for more detailed product categories. Two-digit codes number chapters sequentially. Chapter 01 covers living animals, whereas Chapter 02 covers meat and edible offal.
Headings: Headings classify chapters further. Four-digit codes identify product categories. Live horses, asses, mules, and hinnies are Heading 0101.
Subheadings: They refine heading classification. Six-digit codes distinguish similar products. Subheadings improve product categorization. Subheading 0101.21 may list horse purebreds.
Additional Codes: Tariff codes may have extra codes or subcategories. These codes specify the classification’s origin, additional restrictions, or exemptions.