When you start learning sometimes we can say that start working in import export special in documentation and custom clearance majority of the times you are going to hear a term called HSN code- that is nothing but a harmonized system number code. but do you really know how important this HSN code can be for export and import business.Let’s understand in detail about the core system and its relevance.
The word HSN stands for harmonized system number code which is developed by world custom organization (WCO).
A global system for classifying goods which is traded in more than 200+ countries across the globe.
Every product which is legally tradeable internationally assigned HSN code- that varies from 2 digit to a digit which is going to help to identify what the product is.
Here are the key points because of which HSN code is irreplaceable & must know part of Export Import Industry.
Ensure eligibility for export incentives and tax refund
How HSN code design? structure of HSN code.
For International business i.e. Export import you required HSN code of minimum 6 digit.
It can be extended 8 digit in India for More precise and segregated classification
For example
Where
Every single digit at more details about that particular product and the category as well to identify which product that particular HSN code is describing
The HSN code consists of 20 sections & 98 chapters. Every single chapter represent different category of the product for better understanding, here I am providing you the list of all 98 chapters of HSN code with their name and description in the following PDF attached with this article.
The HSN code consists of 20 sections & 98 chapters. Every single chapter represent different category of the product for better understanding, here I am providing you the list of all 98 chapters of HSN code with their name and description in the following PDF attached with this article.
ITC HSN Code ensures uniform classification of goods, simplifies trade documentation, determines applicable duties and helps exporters claim government incentives or benefits.
HSN Codes are maintained by the World Customs Organization (WCO) under the Harmonized Commodity Description and Coding System & countries like India also adapt them with additional 9th & 10th digits for national use as well.
Using an incorrect HSN Code can result in wrong duty calculation, shipment delays, customs penalties, or rejection of export incentives.
Yes,
The HS Code (Harmonized System Code) & HSN Code are based on the same system. The term “HSN” is more commonly used in India, while “HS” is used internationally.
Yes,
The HS Code (Harmonized System Code) & HSN Code are based on the same system. The term “HSN” is more commonly used in India, while “HS” is used internationally.
You can book a free consultation with Exim federation for confirmation of right HSN code for your export.
No, services use SAC Codes (Service Accounting Codes) instead of HSN. HSN applies only to goods, while SAC applies to services under GST and international trade.