What are the 6 rules for applying HS codes? Let's find out in detail with Proship

x Business units and import/export enterprises need to learn about the HS Code, how to apply the code, and the rules for applying the code?
x Do you have questions about the structure of HS codes of goods, the basis for looking up HS codes, and the fastest way to look up HS codes?
x You do not have experience in doing customs clearance procedures for import and export goods, need to find a reputable and professional customs clearance agent?

HS code is mandatory information that must be filled in in the import-export customs declaration. This type of code helps Customs authorities control the quantity of goods as well as apply tax rates to goods accurately. Below, Proship.vn will clarify the term HS Code as well as 6 rules for applying HS codes, how to quickly look up HS codes... From here, businesses can apply knowledge of HS codes to serve their needs. trade work, completing customs procedures for export and import goods.

Shipping contact hotline: 

Ms Tien: 0909 986 247
Ms Dung: 0939 999 247
Ms Duy: 0902 581 247

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Correct understanding of HS codes and HS Code structure of goods

What is the HS code of goods?

HS Code (HS Code) is a code used to classify imported and exported goods worldwide according to the Goods Classification System released by the World Customs Organization WCO called "Harmonized System of Description and Commodity coding” (HS – Harmonized Commodity Description and Coding System). Based on this code, the Customs Office will impose corresponding import and export taxes on businesses, and can also make statistics on domestic trade and import and export.

The goal of the HS List is to ensure systematic classification of goods; Unify codes applied to all types of goods in all countries, unify the system of terminology and customs language to help everyone understand and simplify the work of relevant organizations and individuals. mandarin; create favorable conditions for negotiating trade treaties as well as applying them; This Agreement is between the Customs Authorities of the countries.

What are the 6 rules for applying HS codes? Let's find out in detail with Proship
HS Code is "Harmonized Commodity Description and Coding System", short for "Harmonized Commodity Description and Coding System" with a structure including Parts, Chapters, Groups and Subgroups.

Structure of HS code

The list of Vietnamese import and export goods is specified in Circular No. 65/2017/TT-BTC dated June 27, 2017 of the Ministry of Finance determining Vietnam's HS code includes 8 numbers. HS code is used internationally, consisting of 8-10 characters. The HS code is divided into the following parts:

  • Part: The HS code consists of 21 or 22 parts, each part has its own legend;
  • Chapter: HS code includes 97 chapters. Of these, chapters 98 and 99 are specific to each country. Each chapter has its own annotation. The first two characters provide a general description of the goods;
  • Group: divide products into general groups, including 2 characters;
  • Subgroup: divided from a more general group, consisting of 2 letters;
  • Subgroup: includes 2 characters. Sub-headings are specified by each country to determine export duties.

* Note: The first Section, Chapter, Group, and Subheading includes 6 numbers and is national, but the subheadings depend on each country.

To know the HS code of each country, pay special attention to the Grouping and Subgrouping sections. Currently, Vietnam is applying an 8-digit HS code, while some other countries in the world may use a 10 or 12-digit HS code.

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* For example: HS code of Instant Coffee is 2101.20.90, including 6 digits divided into 3 groups. Analyze the structure of this code as follows:

  • 21: Is the code of the group of goods in the HS list, called "Chapter". 21 is the chapter for the commodity group "Products of the food industry; beverages, liquids and powders containing alcohol”.
  • 01.20: Is the code of “Item” in the HS list, describing in more detail the type of goods. 01.20 is the entry for “Coffee, including instant coffee and coffee extract”.
  • 90: This is the "Sub-code" code in the HS category, providing additional information about the commodity group. 90 is often used to designate similar products that do not clearly fall within the HS category.

>>See more: What is House Bill?

Proship Logistics shares detailed information about HS codes of goods

Proship Logistics has answered questions about what is the HS Code for goods and what is the structure of the HS code. Next, this will be the information you need to know about the basis for looking up HS codes, 6 rules for applying HS codes and how to look up HS codes quickly and accurately that every business needs to know. Specifically:

Basis for looking up HS codes of goods

  • What is the name of your goods? When you know the name of your product, you will know which chapter code it is in. The name is quite important because if you have the wrong name then you are likely to look up the wrong HS code;
  • Understand the technical specifications of the goods;
  • What is the use of that type of item? There will be a basis to find its most suitable subsection code;
  • Material of the goods - There will be cases where we do not know which codes are most appropriate to upload, then the material of the goods will be the answer for you.

List 6 rules for applying HS Code to goods

The basic content of the 6 general rules is as follows:

RULE 1

“The names of Parts, Chapters or Sub-Chapters are given for ease of reference only. To ensure legality, the classification of goods must be determined according to the content of each group and any notes to relevant Parts and Chapters and according to the rules below if such groups or Notes do not exist. Have any other requests?

The content of this rule has several important ideas:

1. The names of Parts, Chapters, and Subchapters are for general orientation only, and are not sufficient to classify goods (determine HS codes).

2. Important factors for classification:

2.1 Specific content of each group

2.2 Notes (explanations) in Parts and Chapters

3. If based on item 2 above, it cannot be classified, then the next rules will be applied in turn.

* For example: Chapter 39 is titled “Plastic and plastic products”. But plastic children's toys do not apply to this chapter 39, but to chapter 95.

RULE 2

Divided into 2 small rules:

  • Rule 2a:

“If an item is classified into a group of goods, that item in its incomplete or unfinished form also belongs to that group, if it has the basic characteristics of that good when completed or finished. The same classification applies to goods that are complete or finished or have the basic characteristics of goods in complete or finished form (or are classified as finished or finished goods according to the content of the goods). these Rules), but not assembled or disassembled”.

* For example: A bicycle lacking a saddle or pedals (incomplete) is still classified as bicycle code (87.12). Disassembled bicycles, still classified into bicycle code

  • Rule 2b:

“If a material or substance is classified in a certain group, then a mixture or compound of that material or substance with other materials or substances also belongs to that group. Goods made entirely of a material or substance, or partly made of that material or substance, are classified in the same group. The classification of goods made of two or more types of materials or substances must comply with Rule 3".

RULE 3

When, by application of Rule 2(b) or for any other reason, goods may prima facie be classified into two or more headings, they shall be classified as follows:

  • Rule 3a:
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“Groups with the most specific descriptions will be given priority over groups with general descriptions when classifying goods. However, when two or more headings each relate only to part of the materials or substances contained in the goods being mixtures or compounds, or to only part of the goods in the case of such goods in in sets put up for retail sale, these headings are to be deemed to be equally representative of the said goods, even if one of the headings gives a more complete or precise description of the goods. those goods".

  • Rule 3b:

“Composite goods consisting of different materials or goods made from different component parts, and goods in sets for retail sale, otherwise classifiable under Rule 3(a) ), are classified according to the raw materials or component parts that create their basic characteristics.

Rule 3c:

“When goods cannot be classified according to Rule 3 (a) or 3 (b) above, they shall be classified in the last group in numerical order among the equivalent groups considered”.

RULE 4

Goods that cannot be classified in accordance with the above Rules shall be classified in the heading appropriate to the type of goods most similar to them.

RULE 5

The following regulations apply to the following goods:

  • Rule 5a:

“Camera cases, video cameras, musical instrument cases, gun cases, drawing instrument cases, personal belongings cases and similar cases, suitable or specially shaped for containing goods or sets of goods identified chemicals, which can be used over a long period of time and are included with the product when sold, are classified with these products. However, this principle does not apply to packaging that is fundamentally superior to the goods it contains.

  • Rule 5b:

“In addition to Rule 5(a) above, the packaging containing the goods is classified with the goods when the packaging is of a type commonly used for that type of goods. However, this principle does not apply to packaging that is clearly suitable for repeated use.

RULE 6

“To ensure legality, the classification of goods into subheadings of a group must be determined appropriately according to the content of each subheading and relevant subheading notes, and the above Rules with those Modify details as appropriate, on the condition that only subgroups at the same level can be compared. According to these Rules, the relevant section and chapter notes also apply, unless the description in the subheading requires otherwise.

What are the 6 rules for applying HS codes? Let's find out in detail with Proship
There are rules for applying HS codes to goods as well as how to quickly and accurately look up HS codes that every import-export enterprise needs to know.

MORE REFERENCE: North-South Refrigerated Container transportation

How to look up HS code

Looking up HS codes helps import-export businesses understand the list of Vietnamese export and import goods, thereby applying the most appropriate HS code to conduct electronic customs declaration, helping the import and export customs clearance process. The export went smoothly and quickly. U&I Logistics tells you 5 simple ways to look up HS codes as follows:

  • Look up the Import-Export Tariff;
  • Look up HS Code online;
  • Based on the old set of documents;
  • Consult someone with experience;
  • Contact external HS code lookup service.

=> In short, if you want to look up and apply HS codes to goods most accurately, businesses can refer to companies specializing in providing import-export services, customs declaration, and agents. Professional customs agents such as FadoExpress, Proship Logistics to ensure that the process of carrying out customs procedures takes place quickly and smoothly.

Shipping contact hotline: 

Ms Tien: 0909 986 247
Ms Dung: 0939 999 247
Ms Duy: 0902 581 247

Proship Logistics + FadoExpress provides import-export warehousing services at Tan Son Nhat Airport and Cat Lai Port that are fast, professional, and accurate.

Proship Joint Stock Company and FadoExpress Officially cooperate with each other to become a Customs Declaration Agent at Tan Son Nhat Airport and Cat Lai Port, with operating criteria: Fast time, optimal cost, savings Save effort to help businesses comply with Customs Law during the goods declaration process. Regarding the HS code lookup service, as long as the enterprise provides complete product information, the HS code will be determined in the most specific and accurate way. We are proud to be a unit specializing in providing the following services:

  • Customs agents at Tan Son Nhat Airport, Cat Lai Port;
  • Customs brokerage services;
  • C/O application service;
  • Delivery service;
  • Consulting on import and export taxes,...
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When FadoExpress and Proship Logistics operate customs declarations at Cat Lai Port and Tan Son Nhat Airport as customs declaration agents, Shippers/Businesses do not need to use their digital signatures to approve signatures. (remotely), or send false documents like before. Our unit will use its own digital signature to declare and transmit the declaration, so the customs declaration process is quick and valid. Our customs declaration agent undertakes Customs work from the stages of International Transportation - Customs declaration - Customs procedures to clear customs declarations - Domestic transportation to deliver goods to your door. guest.

What are the 6 rules for applying HS codes? Let's find out in detail with Proship
Proship Logistics and FadoExpress are professional, reliable customs declaration agents at Tan Son Nhat Airport and Cat Lai Port with fast processes.

Target customers when warehousing at Tan Son Nhat SB and Cat Lai Port

The target customers that Proship Logistics and FadoExpress focus on are:

  • Customers wishing to use full-service Customs Logistics Services;
  • Companies exporting and importing in and out of Industrial Parks and Non-tariff Zones;
  • Companies export and import through Vietnamese and International Airports and Seaports.

Locations for receiving customs declaration of import and export goods are at Cat Lai Port and Tan Son Nhat Airport

1. KBHQ at Cat Lai Port (Address: Saigon Port Border Gate Customs Branch, Area 1, Gate B, Cat Lai Port Area, Le Phung Hieu, Cat Lai Ward, District 2);

2. Goods cleared by air, we receive customs declaration at the warehouses in SB Tan Son Nhat area:

  • TCS Warehouse: 46 - 48 Hau Giang, Ward 4, Tan Binh District, City. Ho Chi Minh
  • SCSC Warehouse: 30 Phan Thuc Duyen, Ward 4, Tan Binh District, City. Ho Chi Minh.

3. Representative office receiving customs declaration in Ho Chi Minh City area of ​​FadoExpress and Proship Logistics:

Ho Chi Minh

Proship Joint Stock Company

Pick-up point:

PROSHIP HO CHI MINH CITY TAN BINH DISTRICT : 26 Van Chung, Ward 13, Tan Binh District, Ho Chi Minh City

Sales office:

21Bis Hau Giang, Ward 4, Tan Binh District, City. HCM

Proship and FadoExpress are planning to deploy various types of warehousing at Tan Son Nhat SB, Cat Lai Port

Types of HQ Services at Tan Son Nhat Airport ( can be performed)

Proship and FadoExpress are planning to deploy the following types of customs declarations at airports and border gates nationwide to best serve customers:

  • Service of declaring business type, non-commercial;
  • Service of declaring types of export production, types of processing and investment;
  • Declaring services: Types of transit, tax-free investment goods,...

Types of warehousing services at Cat Lai Port (can be performed)

Some customs declaration services that we can perform at the request of import-export enterprises:

  • Full customs clearance service;
  • Import and export customs declaration services from LCL packaged goods to FCL raw goods;
  • Freight transportation services with flexible, fast and safe forms;
  • Services for applying for full C/O samples, export quarantine certificates, etc.;
  • Tax refund service for businesses.

Thus, Proship Logistics has updated the knowledge you need to know about the 6 rules for applying HS codes to goods . Business units and import-export enterprises that are having problems or do not have experience in applying HS codes should save the information. information to apply when needed. In case you need the support of the Customs Declaration Unit at Tan Son Nhat Airport and Cat Lai Port, please choose FadoExpress and Proship Customs Declaration Agents to meet all requirements and help. Speed ​​up the customs clearance process of goods. For details, please contact 0909 344 247 .

Shipping contact hotline: 

Ms Tien: 0909 986 247
Ms Dung: 0939 999 247
Ms Duy: 0902 581 247

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