Indian HS Code classification

HS System which stands for Harmonized System is an internationally accepted naming methodology for goods and services that are traded in international trade. It is also known as the Harmonized Commodity Description and Coding System. It was developed and imposed by the WCO (World Customs Organization) in 1988.
The HS code classification is classified into twenty one divisions containing ninety six chapters along with guidance notes and statements for interpretation. The system was initially introduced to provide codes to crude oil products which then extended to other articles of international trade also.

Under HS code Classification scheme traders are required to base their customs schedules mentioning the articles of their trade in the nomenclature laid down by WCO. The objective of introducing the harmonized system was to ensure uniformity in naming products and to eliminate wrong application of rates for custom, duties and taxes. All products that are currently used in international trade are included in the coding system. Clarifications for assigning HS codes are also provided under the General rules for interpretation. New products for which no HS code has assigned will be classified under “others”.

HS code classification helps achieve uniformity of representing articles involved in international trade. It makes the process of collecting tax, customs and duties easier and simpler.