Nikhil Bhardwaj

HSN/HTS Classifier (Global Trade compliance)

• The Harmonized System (HS) is an internationally standardized system of names and numbers used to classify traded products. Managed by the World Customs Organization (WCO), the HS system is used by over 200 countries and economies globally to classify products for import and export.
• Correct classification of goods under the HSN or HTS system is essential for determining the correct duty rates and ensuring compliance with local regulations. Misclassification can lead to penalties, customs delays, or goods being withheld from entry.

Customs Valuation and Duty Calculation

• The tariff rate assigned to a product depends on its classification. For example, certain products may qualify for duty-free import under specific trade agreements, like the North American Free Trade Agreement (NAFTA) or the U.S.-Mexico-Canada Agreement (USMCA). Similarly, the classification helps in calculating other trade-related fees, like anti-dumping duties or safeguard duties.