HS Code definition
HS code known as Harmonized system, which was developed by world customs organization “WCO” on 1988 for multipurpose product tariff nomenclature, as an international standard system for numbers and names to classify traded goods, it describes the type of goods that will be shipped, nowadays all customs officers around the world are using the harmonized system in movement and clearness of products across the borders.
Saudi Arabia Tariff Codes
International Harmonized system (HS Code) consists of 6 digits, and Gulf countries set it to 8 digits HS Code. and Saudi Arabia Customs authority create a new HS code combining between the international and Gulf system, and make the HS code 12 digits.
HS Code Structure
The Harmonized system code could be described as:
- It is a six-digit identification code.
- It has 5000 commodity groups.
- Those groups have 99 chapters.
- Those chapters have 21 sections.
- It’s arranged in a legal and logical structure.
- Well-defined rules support it to realize uniform classification worldwide.
The main categories in the HS (sections), and the textual description of these categories
- The first category – animals and animal products
- The second category – vegetable products
- The third category – animal or vegetable fats
- Fourth Category – Ready Food
- Fifth Category – Metal Products
- Class VI – chemical products
- Seventh category – plastic and rubber
- Eighth category – animal skins
- Ninth category – wood and wood products
- Tenth Class – Wood Pulp Products
- The eleventh category – textiles and textile materials
- Twelfth category – shoes and headwear
- Category thirteen – Materials made of stone, plaster, cement, or asbestos
- Category Fourteen – Pearls, Precious or Semi-Precious Stones, Precious or Semi-Precious Metals
- Category fifteenth – basic minerals and materials
- Sixteenth class – Mechanical machines and devices
- Seventeenth class – Transport equipment
- Eighteenth Class – Instruments: Measuring instruments and musical instruments
- Nineteenth category – weapons and ammunition
- Twentieth category – various materials
- Twenty-first category – artwork
- Twenty-second category – services
Harmonized System users
- Importers / exporters
- Notified bodies, conformity certification body “CoC, PcoC”
- Statistical entities.
- International organizations.
- Shipping agencies.
- Port authorities.
HS Code Usage
- The HS code system used by 200 countries over the world and other economies around the world for the collection of international trade statistics, and as a basis for customs tariffs. More than 98% of the products included in the international trade were classified.
- HS codes are used by government regulatory bodies, statistical agencies, Customs authorities and other interested bodies such as (exporter, importer, certification bodies and notified bodies) to monitor and control the import and export of commodities.
- Calculate the total cost of landed fees of imported goods and, and to determine all opportunities abroad, so the HS code could be considered as an essential tool for international trade, and unified language for universal economic, and coding for goods.
The fields where HS Code used:
- Customs tariffs.
- Statistical data for import and export trade.
- Rules of Origin.
- Economic agreements.
- Control of commercial shares.
- Transport tariffs.
- Monitoring of regulated products
- Internal taxes
HS Code Classification
HS applications include six General Rules:
- GRI 1 prescribes how classify goods with the four-digit Heading level, as per the wording of the headings and the HS Section and Chapter.
- GRI 2 prescribes how to classify both incomplete and unassembled goods and mixtures, as well as combinations of goods.
- GRI 3 prescribes how to classify products that are, prima facie, classifiable under two different HS headings.
- GRI 4 prescribes how to classify products that cannot be classified according to GRI’s 1, 2, and 3.
- GRI 5 prescribes how to classify packaging.
- GRI 6 prescribes how classify goods with six-digit subheading level, as per wording of the subheadings and the HS Section and Chapter.
Challenges in the Classification with HS Code:
- HS code was considered as a universal economic language, and it was integrated with many customs clearness system, so most importers and bodies are using this system
- As an importer, it is very important to use the correct HS code, because the using of wrong Code might be considered as non-compliance or mis-declaration by customs authority which leads to penalties.
- In such cases, the using of the correct HS code could be difficult, where the interpretation and reading the coding were different among countries, because the using of wrong code might lead to applying wrong tariff by customs authority and paying more expense and fees.
HS code & product conformity program
- Define the correct HS Code is very important in your certification process in saber platform
- According to the define HS code, you will determine if your products are regulated with technical regulation or not, and what is the type of conformity should be followed.
- if you choose a wrong HS code, this might lead to major non compliance,
- if you are export & import from / to Saudi Arabia and need to register your products via saber platform visit SASO COC certificate page.
- if you are export & import from / to any other countries such as Egypt, China, Kuwait, Italy, France, USA, India, Iraq … etc and need identify HS Code for your product, contact our expert Now