What is HS Code For Shipping

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What  is HS Code for shipping, and why is it significant?

People always ask what is HS Code for shipping and why is it so important. The World Customs Organisation created the Harmonised System (HS) as a multifunctional international product classification that describes all products that can be traded internationally. Commodities must be declared with the correct HS code (also known as an HTS code) in order to successfully traverse international borders. This code specifies the applicable duty and tax rate for the item.

How does the HS Code System function?

As the basis for local country classification, the HS Code for shipping system employs a globally recognised 6-digit number. The HS is made up of 5,300 article or product descriptions that are shown as “headings” and “subheadings.” In theory, all nations that use the HS agreement should categorise the same goods under the same HS section, chapter, heading, and subheading; but, in practice, disagreements might develop.

However, not all countries use the same HS Code for shipping or implement the rules in the same way. This ambiguity, along with the rising complexity of products, prior ruling decisions, and a lack of knowledge about the technical elements of a certain product, results in complex, inconsistent, and dangerous classification criteria that can become tricky to navigate.

Who is in charge of classifying goods?

It is your legal responsibility as an importer or exporter to accurately classify the products being sent. Uniqtrans Logistics Sdn Bhd will then correctly disclose that classification to customs on your behalf, acting in your name.

What is it about the HS classification that makes it such a high-risk area?

If you classify your goods incorrectly, you may end up paying the incorrect duty and tax on your goods. This could result in a retrospective duty or tax bill for anything you misclassified. This can result in severe penalties and fines, as well as the seizure or destruction of your belongings.

Incorrect classification may also result in overpayment of duty and tax, affecting your company’s cash flow. It is possible to make a retrospective claim for overpaid duties, but you must be able to effectively justify your grounds for such a change and claim.

In Malaysia, you can find your HS Code at 

http://mysstext.customs.gov.my/tariff/

If it’s not possible to find it at above link, our customer service officers will be able to provide assistance in finding the most suitable HS Code for your cargo. With the correct HS Code determined before importation of cargo, you’ll be better prepared with information on the import requirements, duty, and SST structure. This information will in turn help you to reduce unnecessary issues during shipping.

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