Items that are traded internationally are defined and characterized by the World Customs Organization, through the HTS Code or the Harmonized Tariff System. In order to make sure that international trading or transport of goods and items are done successfully, you should guarantee that the HTS Code you’ll put on your items will meet the Tariff System of your target country. 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. 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.
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. 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. If you provide a wrong code to the item you’re importing or exporting, you could very well be paying for the item with price that’s too small or too big for it but regardless of whether you’re overpaying or underpaying, there’s still a high chance of you paying for penalties as well.
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. There’s the Post-Entry Amendment which you can file, which would allow you to refund your transaction and start it all over again.