Things you Have to Know about HTS Codes
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. 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.
As mentioned, the HTS Codes are tools used globally or throughout the globe and in fact, it is widely known in 170 to 200 countries or more. As a system, each number in the HTS Code stands for something and it come with 7 to 10 digits. For each country the 6 digits always has the responsibility of describing what the item is all about, while the last digits are something unique in each 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. Of course, there are also other companies out there whose sole purpose is to help you with providing HTS Codes to your items and truthfully, they are becoming more and more popular nowadays but, many still opts to do the job themselves as this provides them with more ease in terms of preciseness as they know that they are the ones who are still the most knowledgeable about the items they’re trading. 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.
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.
Fortunately though, accidentally getting HTS Codes for your items isn’t really a lost cause because if you notice it earlier, you could still do something to fix it. You can go back to the start and refund the transaction you’ve done, through filing the Post-Entry Amendment.