What is Harmonized System?

Image Source: Google

Harmonized Commodity Detailing and Coding Systems are commonly mentioned as "Harmonized Systems", or just "HS" is that the multipurpose international product nomenclature developed by the planet Customs Organization (WCO).

It consists of about 5,000 product groups; Each is identified by a six-digit code arranged during a legal and logical structure and supported by well-defined rules to realize a consistent classification.

 The system is used by more than 200 countries and economies as a basis for collecting data on tariffs and international trade. More than 98% of goods in international trade are classified according to their HR classification.

The HS contributes to the harmonization of customs and trade processes and to the exchange of undocumented trade data on such processes, thus reducing the costs of international trade.

Governments, international organizations and other privately owned purposes like internal taxation, national trading policy, control of controlled goods, rules of origin, shipping charges, shipping statistics, price monitoring, quota control, compilation at the national level Widely used by the region. Accounts, economic research and analysis. The HS is, therefore, a universal economic language and commodity code and an indispensable tool in international trade.

Harmonized systems are governed by the "International Convention on the Detailed Description and Coding of Harmonized Commodities". The official interpretation of the HS is given in the explanatory notes published by the WCO (5 volumes in English and French). Interpretative notes are also available online and on CD-ROM, as part of a database grouping all available HS tools, combining nomenclature information, classification opinions and compilation of explanatory notes, related alphabetical indicators and the Prospectus of the Harmonized Systems Committee. classification decisions are taken by the

Maintaining the HS is a priority for the WCO. This activity includes measures to ensure a similar interpretation of the HS and to update it from time to time in the light of technological developments and changes in business patterns. The WCO directs this process in the Harmonized Systems Committee (which represents the contracting parties to the HS Convention), which examines policy issues, decides on classification issues, settles disputes and amends explanatory notes. she exercises. The HS Committee also makes amendments that update the HR every 5-6 years.