HTS Codes 101: What You Should Know About it
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. If you are engaged on a business that’s preparing to go to the international platform, knowing more about HTS code will definitely be a great boon for you and there’s no doubt that the details below would be very helpful in your endeavor.
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. HTS Code is divided into two parts with the first part referring to the first 6 digits of the code, which stands for the description of the item and the second part being unique, depending on what country you’re in.
Accurately and Precisely providing HTS Classification for Items that you’ll import or export, is one of the trickiest and biggest responsibility you’ll have as a businessman. Accuracy is extremely important because failing to do so would incur losses and charges to your company, which is why some also prefers doing HTS codes themselves rather than hiring third party companies to do the job for them. If you do opt for the third party expert’s help, what you need to make sure is that you’ll provide the most accurate information about your items to boost their accuracy even more.
Just based on its name alone, it is easy to understand that aside from merely classifying and describing an item, the HTS codes emphasizes the importance of a Tariff system, which means that the codes also has a role in determining how much you’ll pay for the import or export. There are two scenarios which may happen if you put in the wrong code and that’s either paying too low of an amount or too high for the item you’re trading but, regardless of where you land between the two, you’ll still be subjected to penalty payments which will certainly hurt your bankroll as a business.
You don’t have to be too worried at first though, because you can still fix the problem at hand as long as you move quick in fixing it. You have the option to file the Post-Entry Amendment, which will allow you to request from the establishment, a refund for the transaction.