Understanding HSN Codes : A Comprehensive Guide

6-Aug-2024
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    Introduction to the HSN Code

    The Harmonized System of Nomenclature (HSN Code), developed by the World Customs Organization (WCO) in 1988, it is a universal language for categorizing goods, essential for international trade and standardizing processes like customs clearance and statistical analysis.

    The Genesis and Evolution of the HSN Code

    The HSN Code, Introduced in 1988 by the WCO, the HSN Code was created to simplify the classification of commodities in international trade.The system has been regularly updated, approximately every five years, to reflect the dynamic nature of global trade, including new products and technological advancements.

    Global Adoption and Implementation

    The HSN Code is recognized and used by over 200 countries, which constitutes about 98% of global merchandise trade.This highlights its role in standardizing product classification and facilitating international trade.

    Understanding the HSN Code Structure

    General Structure of the HSN Code

    The basic HSN Code provided by the WCO comprises a six-digit number,

    72021100
    Chapter (First 2 Digits)

    Broad category of goods as per the Harmonized System of Nomenclature.

    72021100
    Heading (Next 2 Digits)

    Product group within the chapter.

    72021100
    Sub-heading (Next 2 Digits)

    Further detail within the heading.

    Beyond Six Digits:

    National Tariff Lines

    Countries may extend the HSN Code to eight or ten digits or Twelve digits for more detailed classification, allowing for the imposition of specific tariffs and controls.

    Understanding HSN Code with an Example

    Let's take the example of laptops in the United States using the Harmonized Tariff Schedule (HTS) system. Here's how the classification works:

    The extended 10 digit HTS Code in the United States for laptops is `8471.30.01.00`.

    Breakdown of the Code:

    1.Chapter (84): This chapter covers machinery and mechanical appliances; electrical equipment; parts thereof, sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles.

    2.Heading (71):Under this heading, automatic data processing machines and units thereof; magnetic or optical readers, machines for transcribing data onto data media in coded form and machines for processing such data, not elsewhere specified or included, are classified.

    3.Sub-Heading (30): This sub-heading specifically categorizes portable automatic data processing machines, weighing not more than 10 kg, consisting of at least a central processing unit, a keyboard, and a display.

    4.U.S.-Specific Extension (01.00): These additional digits in the United States' HTS Code further refine the category, specifying laptops with a CPU, keyboard, and display, which may include other units housed in the same housing. This level of detail ensures accurate categorization for tariff and trade purposes in the U.S. market.

    HSN Codes' Significance in International Trade

    HSN Codes accelerate customs clearance, are crucial for tariff determination, manage export benefits, and are instrumental in forming trade agreements.They are also vital in managing lists of banned or allowed goods for import and export , providing insights through trade data analysis, and serving as crucial economic indicators.

    Market Research & Competitive Intelligence

    Businesses can utilize Export Import Trade data, categorized by HSN Code, for market analysis and competitive intelligence, identifying market opportunities and making informed decisions.

    Volza provides comprehensive Global export import Trade data categorized by HSN code, complete with detailed information on buyers and suppliers for each bill of lading.

    HSN Code List by Volza

    Browse the links below to access Volza's comprehensive list of HSN codes for over 80 countries, enriched with counts of exporters, importers, and shipments, and strategically aligned with the Harmonized System of Nomenclature for the International Trade.

    HS Codes for (Chapter 6-14 ) - Section II-Vegetable Products

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    HS Codes for (Chapter 15 ) - Section III-Animal or Vegetable Fats and Oils and their cleavage Products; Prepared Edible fats; animal or Vegetable waxes

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    HS Codes for (Chapter 16 -24 ) - Section IV-Prepared Foodstuffs; Beverages, Spirits and Vinegar; Tobacco and Manufactured Tabacco substitutes

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    HS Codes for (Chapter 25 -27 ) - Section V-Mineral Products

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    HS Codes for (Chapter 28 -38 ) - Section VI-Products of the Chemicals or Allied Industries

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    HS Codes for (Chapter 39 - 40 ) - Section VII-Plastics and Articles thereof; Rubber and Articles Thereof

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    HS Codes for (Chapter 41 - 43 ) - Section VIII-Raw Hides and Skins, Leather, Furskins and Articles thereof; saddlery and Harness; travel goods, Handbags and similar Containers; Articles of animal gut (other than silk-worm Gut)

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    HS Codes for (Chapter 44 -46 ) - Section IX-Wood and Articles of Wood; Wood Charcoal; cork and articles or cork; Manufactures of Straw, of Esparto or of other Plaiting Materials; Basketware and Wickerwork

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    HS Codes for (Chapter 47 -49 ) - Section X-Pulp of wood or of other Fibrous Cellulosic Material; Recovered (Waste and Scrap) Paper or Paperboard; Paper and Paperboard and articles thereof

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    HS Codes for (Chapter 50 -63 ) - Section XI-Textile and Textile Articles

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    HS Codes for (Chapter 64 -67 ) - Section XII-Footwear, Headgear, Umbrellas, Sun Umbrellas, Walking-sticks, seat-sticks, whips, Riding-crops and Parts thereof; Prepared Feathers and articles Made therewith; artificial Flowers; Articles of Human Hair

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    HS Codes for (Chapter 68 -70 ) - Section XIII-Articles of Stone, Plaster, Cement, Asbestos, Mica or similar Materials; Ceramic Products; Glass and Glassware

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    HS Codes for (Chapter 71 ) - Section XIV-Natural or Cultured Pearls, Precious or Semi-Precious Stones, Precious Metals, Metals clad with Precious Metal, and articles thereof; Imitation Jewellery; Coin

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    HS Codes for (Chapter 72 -83 ) - Section XV-Base Metals and Articles of Base Metal

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    HS Codes for (Chapter 84 - 85 ) - Section XVI-Machinery and Mechanical Appliances; Electrical Equipment; Parts thereof; sound Recorders and Reproducers, Television Image and Sound Recorders and reproducers, Television Image and sound Recorders and Reproducers, and Parts and Accessories of such article

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    HS Codes for (Chapter 86 - 89 ) - Section XVII-Vehicles, Aircraft, Vessels and Associated Transport Equipment

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    HS Codes for (Chapter 90 - 92 ) - Section XVIII-Optical, Photographic, Cinematographic, measuring, checking, precision, medical or surgical Instruments and apparatus; clocks and watches; musical instruments; part and accessories thereof

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    HS Codes for (Chapter 93 ) - Section XIX-Arms and Ammunition; Parts and Accessories thereof

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    HS Codes for (Chapter 94 - 96 ) - Section XX-Miscellaneous Manufactured Articles

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    HS Codes for (Chapter 97 - 98 ) - Section XXI-Works of art, Collectors' Pieces and Antiques

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