The HS Code is a performance standardization system for the identification and classification of products designed by governments to address tax, pricing, budgeting and economic policies. Tariff and non-tariff measures include international trade regulations and other types of foreign economic activity, as well as the maintenance of customs statistics.
in international trade, all commercial goods are classified according to a harmonized international standard, and in the book of Iranian Export and Import Regulations (prepared by the Export and Import Regulatory Office of the Trade Development Organization of Iran), goods are divided into 21 parts and 98 chapters in double-digit format.
The eight-digit coding is published annually and made available to the public. Each product has a standard eight-digit code (tariff number) and is used in the same way in all organizations, including the National Tax Affairs Organization, the Trade Development Organization, the Ministry of Industry, Mines and Trade, which indicates the product specifications. International Commodity Code specifies many details of goods that in global markets, buyers and sellers of goods in their sales invoices record the international commodity code, which is the same as HS - CODE in their invoices.
In other words, the HS Code is a performance standardization system for the identification and classification of products designed by governments to address tax, pricing, budgeting, and economic policies. HS Code is an international system implemented by the WTO.
In this system, all goods are classified in countries based on an 8- or 10-digit code, the first 4 or 6 digits are common between member countries, and the next 2 or 4 digits can be different based on the country classification space. Since this tariff is common among countries up to the first 6 digits from the left, so it can be a good standard for distinguishing goods in correspondence and trade exchanges. The first two digits of HS correspond to the corresponding chapter. The second two digits show the head of the category and the second two digits show the subcategory.
. For example, code hs 1006.30 indicates Chapter 10 (grain) at the head of batch 06 (rice) and sub-batch 30 (semi-milled rice) or wholly milled rice, even polished or glossy (1). ) Is.
For this reason, tariff and non-tariff measures, international trade regulations and other types of foreign economic activities, as well as the maintenance of customs statistics are included in this system. Usually the product code comes in the proforma and invoice. However, mentioning the name of the product is sufficient and entering the code is not required. The exporter (or seller of the goods) is obliged to define the customs code of the product, and if the HS product code is defined incorrectly (either intentionally or inadvertently), in any case, it has violated the customs rules and regulations, which resulted in Administrative penalties of 50% to 200% of the customs value of the goods will be imposed, because the International Commodity Code determines the import duties of goods and determines the necessity or non-necessity of import licenses from government agencies. It will have a burden that is the responsibility of the owner of the goods or the buyer of the goods.
By 2015, 180 countries have joined the use of HS in the structure of the classification of exports of goods and imports of goods at their customs. The hs tariff code is used in world customs for customs formalities, companies in charge of statistics and trade information, other government agencies active in trade, for monitoring and controlling the export and import of goods: Some applications of the hs tariff are: