HS Code refers to Harmonized System Code is the six digit code used for the classification of goods and products. It is like a common language which is understandable by almost every country involved in the business of import and export. This code is generally used for the purpose of economic investigation, transport statistics, pricing and custom duty etc.
This multipurpose system code was developed by the WCO (World Customs Organization) in the year 1988 and now used by around 200 countries. It contains 21 sections that are later on divided into 98 chapters. A better understanding of the HS code is required to understand the new market opportunities and ease the entire trade process. This is the best coding system that is adopted in the import and export industry.
Every product that enters or exists from one country to another has to be measured by this unique HC code. This Harmonized System Code mainly defines the basic details of products like Name, Type (import or export), price, importers, exporters and many more. It is the universal method to explain products in the international trade market.
Every active trader who is in the business of import and export must know the importance of HS Code as it is the golden key of success. This system code plays a very important role at the time of shipping, loading, unloading and for the purpose of taxation. Each and every product which is traded in the international market must have a HS (Harmonized System) code. It works as a unique ID for every product while trading from one geographical border to another.