Tariff classification refers to the classification of imported goods in order to determine the applicable tariff rate. And calculate the tariff amount. Tariff classification usually includes commodity classification and tariff classification.
Product category:
Commodity classification refers to the classification of goods according to their category, use, price. And other attributes in order to facilitate the determination of applicable tariff rates. And the calculation of tariff amounts. For example, according to the use of goods, goods can be divided into industrial appliances, food. And beverage appliances, textiles, clothing, shoes and hats and other different categories.
Tariff classification:
Tariff classification refers to classifying goods into different tariff codes according to their classification. And coding in order to facilitate the determination of applicable tariff rates and the calculation of tariff amounts. The tariff code is the classification and code of goods specified in the Customs tariff. For example, the Customs tariff classifies goods into 15 different tariff codes. From tariff code 01 to Tariff Code 15, corresponding to different commodity categories.
The main purpose of tariff classification is to determine the tariff number of goods. So as to facilitate the calculation of the tariff amount. Tariff rates may also vary from country to country. So a correct understanding of tariff classification. And tariff classification is essential for both businesses. And individuals conducting international trade.
Customs Tariff
Customs duty refers to the tax levied by the Customs on imported commodities in accordance with the functions. And procedures stipulated in the Customs Law. Customs tariff is an important tax on imported goods and an important source of national fiscal revenue.
The collection of customs duties is usually carried out after the goods enter the customs control area. The Customs will supervise the imported goods, classify the goods into tariff categories, determine the applicable tariff rate. And calculate the tariff amount. And finally conduct customs verification on the imported goods. And collect customs duties on the payment of customs duties.
The rates of customs duties vary according to different categories of goods and circumstances.
For example, some goods may enjoy a lower tariff rate. While some high-end goods may enjoy a higher tariff rate. In addition, customs can also adjust the tariff rate according to the quantity and value of goods imported.
The payment of customs duties is generally carried out when the goods enter the customs supervision area. And declare and pay the tax at the customs. Businesses and individuals can go to the local customs. Or through the online pre-declaration system to declare and pay tariffs.
What is a Tariff?
Tariff is a kind of tax levied by the customs on imported goods. It is an important tax on imported goods and an important source of national fiscal revenue.
Customs duty refers to the taxes levied by the Customs on imported commodities in accordance with the functions. And procedures stipulated in the Customs Law. The collection of duties is usually carried out after the goods have entered the customs control area. The Customs will supervise the imported goods, classify the goods into tariff categories, determine the applicable tariff rate. And calculate the tariff amount. And finally conduct customs verification on the imported goods. And collect customs duties on the payment of customs duties.
The rates of tariffs vary according to different categories of goods and circumstances.
For example, some goods may enjoy a lower tariff rate. While some high-end goods may enjoy a higher tariff rate. In addition, customs can also adjust the tariff rate according to the quantity and value of goods imported.
The payment of customs duties is generally carried out when the goods enter the customs supervision area. And declare and pay the tax at the customs. Businesses and individuals can go to the local customs. Or through the online pre-declaration system to declare and pay tariffs.
How do we classify goods for customs purposes?
We need to sort the goods for customs. The purpose of classification is to determine which goods are subject to customs duties. And in which way goods need to be classified.
There are usually two ways to classify goods: commodity classification and tariff classification.
Commodity classification refers to the classification of commodities in order to facilitate customs supervision. And taxation of commodities. This type of classification is usually suitable for simpler situations. Such as classifying goods according to their purpose, price, or other attributes.
Tariff classification refers to the classification of commodity tariff code. So as to facilitate the customs to collect taxes on commodities and calculate taxes. This type of classification is usually suitable for more complex cases. Such as the classification of goods according to the purpose of import, classification and tariff number.
In practice, we usually classify goods according to their nature, purpose, price, or other attributes. For some goods that are difficult to classify. We can submit them to the customs for further classification.
Benefits of HS codes
HS code is an international standard commodity classification system. Which provides standardized guidance for the customs to classify and manage import and export goods. The HS code divides goods into 11 categories. Including fruits, vegetables, meat, dairy products, alcohol, automobiles, machinery, electronics, textiles, shoes and hats. And bamboo products, and each category is subdivided into 68 specific goods.
Benefits of HS code include:
- Standardization :HS code provides a unified commodity classification system. Making the customs classification and management of goods more standardized and efficient.
- Reduce errors :HS code divides goods into 11 categories. And each category has a clear definition, which can reduce the occurrence of human error. And improve the accuracy of classification.
- Easy to manage :HS code provides a classification system for import and export goods. Making it more convenient for the customs to classify. And manage import and export goods.
- Promote trade :HS code classification system can promote international trade. Making import and export goods easier to classify and compare. Thus promoting the development of international trade.
HS code is a very important international trade standard. Which is of great significance for the classification and management of import and export goods.
How are the HS Codes structured?
HS code is developed by the International Organization for Standardization (ISO). Its purpose is to provide an international standard for the import and export management of commodities. The HS code has been built through several stages. And the HS code now in use is the fourth revised version.
The building process for HS code typically consists of the following steps:
- Determine the commodity classification system: When ISO began to develop the HS code. It realized that the commodity classification system needed to conduct a comprehensive investigation. And research to determine the classification system of goods.
- Collection of commodity information: After determining the commodity classification system. ISO begins to collect commodity information on a global scale. Including commodity name, description, customs code, etc.
- Organization of commodity information :ISO organizes the collected commodity information into documents. Which include commodity name, description, customs code, commodity category. And commodity sub-category information.
- Commodity classification :ISO carefully reviews the collected commodity information. And determines the commodity classification according to the nature and category of the commodity.
- Audit and modification: After determining the classification of goods,ISO has conducted several audits. And modifications to the HS code to ensure the accuracy and integrity of the code.
- Release revision :ISO publishes the first version of the HS code as ISO 6346. The first standard version of the HS code. After the first publication,ISO made several revisions to the HS code to ensure its accuracy and usefulness.
The HS code now in use is the fourth revised version, which came into effect on January 1, 2017.
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