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. Continue reading below and find out more about HTS Code, especially if you are a businessman who’s planning to go global in the future and engage to trades in the international platform.
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. As a system, each number in the HTS Code stands for something and it come with 7 to 10 digits. It is important to make sure that you know that the 6 digits in the first part of the HTS Code, refers to the item’s description itself while the latter part or the 4 remaining digits differ from country to country.
It is also important to take note, that giving HTS Classifications to your items is your responsibility, and it is highly crucial for you to be accurate and precise in this stage. There’s also the option however, to allow third party companies to do the job for you and let them assign HTS Codes to your items but, many are against this kind of option since only you, as the importer, would undeniably know what your items exactly are and what category it belongs to. Experts however are more knowledgeable on the HTS codes in its entirety and if you want to take chances and opt for them, you just need to make sure that you provide accurate description of the items to them.
You also have to bear in mind that aside from being a system made to classify goods and items traded internationally, the HTS Code is also a Tariff System as its name suggests, which means that each code or item corresponds to specific amount of payments. There’s a chance than in the process of providing wrong code to the items, you’ll either be paying too low or too high of an amount but what will really get your bankroll damaged, are the penalties for providing wrong HTS codes.
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 have the option to file the Post-Entry Amendment, which will allow you to request from the establishment, a refund for the transaction.