The Role Of The Hs Code In Global Importing And Exporting

The HS code system is one key to global trade, which is used by governments to assess customs duties, enforce domestic regulations, perform risk assessment and collect trade statistics. Companies also use the code to determine the landed cost of imported goods and materials so they can identify selling and sourcing opportunities abroad and bring elements of procurement and compliance together in the supply chain.

The HS, or Harmonized Commodity Description and Coding System of tariff nomenclature, is an internationally standardized system of names and numbers that is used to classify traded products. It was developed by the World Customs Organization, also known as the WCO for short, which is still responsible for maintaining the code. The organization has been integral to global trade management for many years, and was formerly called the Customs Co-operation Council. It is an independent intergovernmental organization based in Brussels, Belgium with more than 170 countries as members.

Companies can determine the landed cost of raw materials, semi-finished and finished goods, consisting of the total cost of purchasing, transporting, warehousing and distributing, using this code. Government organizations can determine customs duties, enforce domestic regulations, perform risk assessments and collect statistics using this trade-related numbering system. The digits in the code consist of a four-digit heading, which is part of a six-digit subheading, which cannot be changed. Individual countries may extend the HS number to eight or ten digits for customs or export purposes, however.

Author: Groshan Fabiola

Strategies For Reaching Global Markets

With increase in technology, companies today must be more willing to evolve than ever before. Although business is evolving much faster than much of the government and private sectors, today's businesses have to stay ahead of the curve by being knowledgeable about changes in technology as well as continuing to find new ways to be competitive and meet customer demands. Often, this involves learning to compete on a global level, and exporting is often one of the ways that many of today's corporations and small businesses can increase profits while boosting the local economy.

Unlike offshore outsourcing, exporting is a way of increasing revenues while still creating local jobs. In the US, the Department of Commerce has created local Export Assistance Centers in nearly every state that can help many small businesses export their products and become more competitive. With over 85 percent of US businesses being small to medium sized businesses, these kinds of businesses often do not have the resources, technology, or know how to implement exporting strategies, and these centers help teach these kinds of skills to small business owners and allow for increased technology among today's smaller organizations.

While the majority of US export in all states continue to be primarily to Canada and Mexico as a result of the North American Free Trade Agreement, exports to other countries are continuing to increase as well, with emerging markets centered around parts of Europe, Australia, and even some sectors of the Middle East. In contrast, imports from Southeast Asia continue to rapidly increase, fueling greater demand for more US exports in an effort to further boost the economy. Between 1994 and 2004, it was estimated that small to medium sized businesses accounted for nearly 98 percent of all US exports, and it is expected that within the next five to ten years, these kinds of exports will increase substantially through the result of greater technology and educational efforts.

Many of these EACs are essential to promoting this kind of much-needed growth in the export sector. Many small business owners continue to be reluctant to engage in any kind of foreign trade, and the fact that these EACs often deal directly with foreign customs offices and can match buyers with sellers as well as provide needed documentation greatly eases the burden for many of these organizations. Other helpful organizations that can help small businesses get started in exporting are export trading companies, which specialize in mediation and assuring that US companies get paid for their exports. Often, these kinds of companies will also provide a great deal of training and education about exporting as well.

Ezine Author: Dave Vower

USA Buyers : US Customs Import Data

Excise Duty Rates: Chapter 1 to 23

EXPLANATORY NOTES (EXCISE)

Note: All changes come into effect immediately unless otherwise specified.

GENERAL
Enhancement of Standard Rate: - The standard rate of excise duty, which was reduced to 8% in
February 2009 as a part of the Stimulus package on non-petroleum products is now being enhanced from 8% to 10% with a few exceptions. Consequent to the increase in the standard rate, rates of excise duty on certain products like Cement, Large Cars etc. are also being suitably enhanced. Chapter wise changes in excise duty rates, other than enhancement of standard rate from 8% to 10%, are given below:

Chapters 1 to 10
No change.

Chapter 11
11.1 Excise duty exemption on Tapioca Starch & Maize Starch is being withdrawn and these products will now attract excise duty at 4%. (S.No. 3 of Notification 3/2006-CE as amended by the notification 9/2010-CE dated 27.02.2010 refers) 11.2 Excise duty on potato starch is being reduced from 8% to 4 %.( S.No. 3 of Notification 3/2006-CE as amended by the notification 9/2010-CE dated 27.02.2010 refers)

Chapters 12 to 20
No change.

Chapter 21
21.1 Excise duty on Betel nut product known as „Supari. is being fully exempted from excise duty. However, Scented Supari will continue to attract duty at applicable rates. (S.No. 27Aof Notification 3/2006-CE as amended by the notification 9/2010-CE dated 27.02.2010 refers)
21.2 Pan Masala Packing Machines (Capacity Determination and Collection of Duty) Amendment Rules, 2010 have been issued to amend Pan Masala Packing Machines (Capacity Determination and Collection of Duty) Rules, 2008 to effect certain technical changes in the said rules (Notification No. 8/2010-Central Excise (N.T.), dated 27.02.2010 refers).

Chapter 22 & 23
No change.

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Exporters hail budget, thank for Rs 200 cr grant

Tirupur Exporters' Association (TEA) today hailed the one time grant of Rs 200 crore provided in the Union budget towards cost of installation of a Zero Liquid Discharge System to textile cluster in Tirupur.

In a statement here, TEA president A Sakthivel welcomed the Budget 2010-11 and thanked Prime Minister Manmohan Singh, Finance Minister Pranab Mukherjee and Textiles Minister Dayanidhi Maran for conceding the request of Tirupur industry.

Exressing happiness for launching an exclusive skill development programme in textile and garment sector, he said the initiative would help to enhance labour productivity.

He also thanked allocation of Rs 2400 crore to Technology Upgradation Fund Scheme and said this would help for reimbursement of interest under the scheme at time to borrowers who opted for it.

He appreciated the keeping of Customs Duty and Service Tax at same level.

However, Shaktivel expressed concern on discontinuation of 2 per cent Interest Subvention Scheme in pre and post shipment credit available for textile industry and expected that it would be given to knitwear garment sector to have more competitiveness in the global market. Complete coverage

Sources: ndtv profit