Understanding HSN Codes : A Comprehensive Guide

The Harmonized System of Nomenclature (HSN Code), developed by the World Customs Organization (WCO) in 1988, it is a universal language for categorizing goods, essential for international trade and standardizing processes like customs clearance and statistical analysis.

The HSN Code, Introduced in 1988 by the WCO, the HSN Code was created to simplify the classification of commodities in international trade.The system has been regularly updated, approximately every five years, to reflect the dynamic nature of global trade, including new products and technological advancements..

The HSN Code is recognized and used by over 200 countries, which constitutes about 98% of global merchandise trade.This highlights its role in standardizing product classification and facilitating international trade.

Let's take the example of laptops in the United States using the Harmonized Tariff Schedule (HTS) system. Here's how the classification works:

The extended 10 digit HTS Code in the United States for laptops is 8471.30.01.00

Breakdown of the Code:

This chapter covers machinery and mechanical appliances; electrical equipment; parts thereof, sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles.

Under this heading, automatic data processing machines and units thereof; magnetic or optical readers, machines for transcribing data onto data media in coded form and machines for processing such data, not elsewhere specified or included, are classified.

This sub-heading specifically categorizes portable automatic data processing machines, weighing not more than 10 kg, consisting of at least a central processing unit, a keyboard, and a display.

These additional digits in the United States' HTS Code further refine the category, specifying laptops with a CPU, keyboard, and display, which may include other units housed in the same housing. This level of detail ensures accurate categorization for tariff and trade purposes in the U.S. market.

HSN Codes accelerate customs clearance, are crucial for tariff determination, manage export benefits, and are instrumental in forming trade agreements.They are also vital in managing lists of banned or allowed goods for import and export , providing insights through trade data analysis, and serving as crucial economic indicators.

Businesses can utilize Export Import Trade data, categorized by HSN Code, for market analysis and competitive intelligence, identifying market opportunities and making informed decisions.

Volza provides comprehensive Global export import Trade data categorized by HSN code, complete with detailed information on buyers and suppliers for each bill of lading.