What makes the Harmonized System (HS) crucial for international trade?

The Harmonized System is pivotal as it classifies over 98% of goods involved in international trade. It aids in harmonizing customs and trade procedures and facilitates the exchange of trade data, lowering the costs associated with international trade.

What is the function of the Harmonized Tariff Schedule (HTS) code?

The Harmonized Tariff Schedule code is a classification system used in the United States to determine the customs duties payable on imported goods.

Why are HTS codes necessary?

HTS codes are essential because they assign each imported item a unique number, facilitating identification and classification. Governments use these codes to ascertain the duty or taxes required to import these items.

Is it necessary to use harmonized codes for shipping?

HS codes are crucial when shipping cargo, as they help identify the transported commodities. Shipping instructions that lack a complete six-digit HS code will not be processed. HS codes are numerous and are updated every few years to reflect changes in the global market.

What is the Harmonized System Code, and Why Does It Matter?

Importer of Record (IOR)

Exporter of Record (EOR)

Trade Compliance

Customs Clearance