Things you Have to Know about HTS Codes
Items that are traded internationally are defined and characterized by the World Customs Organization, through the HTS Code or the Harmonized Tariff System. In order to make sure that international trading or transport of goods and items are done successfully, you should guarantee that the HTS Code you’ll put on your items will meet the Tariff System of your target country. Continue reading below and find out more about HTS Code, especially if you are a businessman who’s planning to go global in the future and engage to trades in the international platform.
HTS Codes have become a very vital existence in international trading and in fact, over 200 countries across the globe are already using it in varieties of transactions. Having 7 up to 10 digits in its system, HTS Codes comes with specified meaning which makes it an effective way of immediately defining an item. For each country the 6 digits always has the responsibility of describing what the item is all about, while the last digits are something unique in each country.
You should also understand that the responsibility of giving your items with an HTS Classification, falls into your hands and it is important that you’re accurate in doing so. Of course, there are also other companies out there whose sole purpose is to help you with providing HTS Codes to your items and truthfully, they are becoming more and more popular nowadays but, many still opts to do the job themselves as this provides them with more ease in terms of preciseness as they know that they are the ones who are still the most knowledgeable about the items they’re trading. Though many are against them, you can still try out seeking the help of experts in HTS Codes and just make sure that you give them description about your items, with utmost preciseness to ensure topnotch results.
You also have to bear in mind that aside from being a system made to classify goods and items traded internationally, the HTS Code is also a Tariff System as its name suggests, which means that each code or item corresponds to specific amount of payments. There are two scenarios which may happen if you put in the wrong code and that’s either paying too low of an amount or too high for the item you’re trading but, regardless of where you land between the two, you’ll still be subjected to penalty payments which will certainly hurt your bankroll as a business.
You don’t have to be too worried at first though, because you can still fix the problem at hand as long as you move quick in fixing it. You have the option to file the Post-Entry Amendment, which will allow you to request from the establishment, a refund for the transaction.