EXPORTING MADE EASY
The Harmonised System (HS) Code is a standardized international system of names and numbers used to classify traded products for customs purposes. It is developed and maintained by the World Customs Organization (WCO) and is used globally to identify goods being traded between countries, including the UK.
HS Codes in the UK:
•In the UK, the HS code is part of a broader classification known as the Commodity Code, which is used for both imports and exports.
•The UK Commodity Code builds on the internationally standardized six-digit HS code and extends it up to 10 digits for greater specificity and to meet the UK’s customs requirements.
Structure of the HS Code:
1.First Six Digits: Standardized worldwide to identify the type of product. These are the same across all countries that use the HS system.
2.Additional Digits: Countries can add extra digits for national purposes. In the UK, the HS code can extend to up to 10 digits, allowing for more detailed classification and information on duty rates.
Purpose of the HS Code in the UK:
•Customs Declarations: When exporting or importing goods, businesses in the UK must declare the correct HS/Commodity Code to customs authorities. This code determines the applicable tariffs, taxes, and regulations.
•Trade Compliance: HS codes are used to apply the correct customs duties, VAT, and to comply with rules regarding quotas, restrictions, or prohibitions on certain goods.
•Trade Statistics: HS codes help governments and organizations collect data on the volume and types of goods traded, which is important for economic analysis and trade policy.
Example:
If you are exporting electronic devices, the relevant HS code might be 8528 (for monitors and projectors) at the six-digit level, and the UK could extend it to further digits to specify the exact type and features of the product.
In summary, the HS Code is a critical tool in UK trade, ensuring that goods are classified consistently for customs and regulatory purposes. It plays a key role in determining duties, taxes, and compliance with international trade laws.