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Application of HS system in China

Publisher: Wuxi Konid Import and Export Trading Co., Ltd. release time:2020-6-19 10:49:54 The number of clicks:462 shut down
   HS agreement is formulated by The customs cooperation council (also known as The world customs organization) of formulating a for customs import and export management, statistics, and The relevant parties and The international trade of common use Commodity classification and Coding system, its full name is The name of The Commodity and Coding coordinating "(The Harmonized Commodity Description and Coding system, coordinate system or The HS).
I. Generation of HS
In international trade, sovereign states impose taxes on the import and export of commodities, which requires the classification of commodities. In order to understand the import and export trade, the government also needs to make statistics with the help of the catalogue of commodities. Therefore, many countries have developed the classification and coding of import and export commodities to different degrees. The earliest catalogs were simple, listing names in alphabetical or alphabetical order. Because of the differences of commodity catalogue in commodity name, catalogue structure and classification method, it causes great inconvenience to traders. At the same time, due to the poor comparability of the resulting statistical data, it is necessary to have a systematic and scientific classification of trade activities and international universality in order to adapt to the development of international trade. For this reason, since the beginning of this century, the international community has been exploring how to develop an internationally unified catalogue of commodity classification. After decades of efforts, two sets of international classification coding standards have been developed.
In 1948, the United Nations Statistical Commission established the Standard Classification of International Trade (SITC). The Economic Commission for Europe (European Customs Union) signed the Convention on The Classification of Goods under Customs Tariffs in Brussels on 15 December 1950, which was amended in 1972 and renamed the Classification of Goods under the Customs Cooperation Council (CCCN). SITC and CCCN have played a positive role in simplifying international trade procedures and improving work efficiency. However, two sets of codes exist at the same time, which still cannot avoid the need to reclassify, name and code commodities in international trade due to different classification methods. All these hinder the transmission of information, hinder the trade efficiency, increase the trade cost, and make it difficult to compare and analyze the trade statistics of different systems. At the same time, it also brings great difficulty to use computer and other modern means to process foreign trade documents and information. Therefore, starting from may, 1973, the customs co-operation council interim committee set up coordinate system, on the basis of CCCN and SITC, in order to satisfy the customs import and export management, tariff collection and foreign trade statistics as well as the needs of production, transportation, trade, etc, for the purpose, to prepare a set of international unification of commodity classification catalogue. Some 60 countries and more than 20 international organizations have participated in the preparation of the new catalogue.
After 13 years of efforts, the 61st session of the Customs Cooperation Council in June 1983 adopted the International Convention on the Coordinated System of Commodity Names and Codes and its annex, the Coordinated System. The HS code "Coordination" covered CCCN and SITC classification codes, which were formally implemented on January 1, 1988. Thus, for the first time in history, the commodity classification and coding system adopted by all countries in the field of international trade has been unified.
Ii. The structure and characteristics of HS
(1)HS structure
HS is a scientific and systematic international trade commodity classification system. The overall structure of HS includes three parts: classification rules; Category, chapter and subheading notes; Code and provisions of headings and sub-headings arranged in sequence. These three parts are legal provisions of HS, which have strict legal effect and strict logic.
1. In order to ensure the consistency of the use and interpretation of HS in the international community, so that a particular commodity can be consistently included in a unique code, HS first lists 6 general rules of classification, which stipulate the classification principles and methods to be followed when using HS to classify commodities.
2. Many classes and chapters of HS have annotations (class notes, chapter notes or subheading notes) at the beginning, which strictly define the range of goods included in that class or chapter and describe the definition of specific terms in HS or the technical standards and boundaries for distinguishing certain goods.
3.HS USES a six-digit code to classify all internationally traded commodities into 21 categories, with chapter 97 (of which Chapter 77 is reserved). It is subdivided into order and suborder. The first two digits of the code represent "chapter" and the first four digits represent "order". Five or six digits represent subheads. The 1996 edition of HS has 5,113 six-digit subsets. In HS, "class" is basically divided into economic sectors, such as food, beverage, tobacco and alcohol in the fourth category, chemical industry and its related industrial products in the sixth, textile raw materials and products in the eleventh category, mechanical and electrical equipment in the sixteenth category. Transport equipment in the seventeenth category, weapons, ammunition in the nineteenth category, etc.
There are basically two methods for the classification of HS "chapters".
It is to classify according to the attribute of commodity raw material, the product of same raw material generally belongs to same chapter. In the chapter, the products are arranged according to the degree of processing from raw materials to finished products. For example, chapter 52 cotton is arranged in the order of raw cotton -- carded cotton -- cotton yarn -- cotton cloth.
Second, according to the use of goods or performance classification. Manufacturing many of the products according to its raw material classification very hard, especially a variety of materials available products or products made of composite material (such as chapter 64 shoes, chapter 65 caps, chapter 95 toys, etc.) and electrical products, etc., the HS according to its function or purpose are divided into different chapter, without considering what raw material, its use within the chapter again according to the raw material or process to arrange the orders, or Buddhism. Each HS chapter has a "bottom feeder", named "other", so that any import and export commodities can find their proper place in this classification system