Customs

Meaning, significance of HS Code in import/ export of goods

The Eyewitness News Educational series

HS codes are product identification numbers used in international trade that are recognized by most countries.

The World Customs Organisation (WCO) manages the HS codes, which are widely used by businesses and customs officials to identify commodities.

Harmonized commodity description and coding system or HS is a term utilized for the classification of globally traded products by names and numbers.

In this article, we will discuss the HS Code and its significance in import and export.

Everything you need to know about HS Code

The World Customs Organization’s Harmonized Commodity Description and Coding System is known as the Harmonized System (HS) Classification.

It is an international system for classifying goods for customs purposes, giving each category of goods a special 6-digit HS code.

The Customs Cooperation Council first used the system in 1983. Although most nations in the globe have standardized their HS codes, there are notable exceptions.

The word “harmonized commodity description and coding system,” or “HS,” is known as the system of naming and numbering things that are traded internationally.

The average HS Code contains 6 digits. These six numbers are then categorized into three groups of two digits each.

The HS Code’s structure is considered to be this. The HS Code is written as follows: 420222.

A description of the imported or exported product is provided for every set of two digits.

The first 2 digits Include: the HS chapter (the type of commodity)
The second 2 digits Include: HS heading (raw material information)
Third 2 Digi Includes: HS subheading (finished or non-finished good)

Rules for Harmonised System and HS codes.

There are certain rules that govern and manage the Harmonised System and HS codes. These are:

1. General Rules for Harmonised System:

These make sure that a certain product is exclusively linked to one heading (and subsection) and none else.

There are six general rules of interpretation (GRI), and they are arranged in ascending order, starting with GRI 1 and continuing through GRI 6 and 7.

GRI 1 states that “classification is considered by the terms of the headings and of the section or chapter notes”.

If a classification cannot be thus determined, then GRI 2 to GRI 5 is applied.

GRI 2 has two parts. GRI 2 (a) extends the scope of a heading to cover not just completed products but also “incomplete”, “unfinished”, “unassembled” or “disassembled” products, provided they have the “essential character” of the finished product.

GRI 3 lays down the rules for classifying goods that fall under more than one heading.

GRI 4 applies to goods not specifically covered by any heading (perhaps because they are newly introduced).

GRI 5 applies to the classification of boxes, containers, and cases in which commodities are packed (cases for cameras, guns, jewelry, etc.).

The classification of any packaging that is not covered under GRI 5 is left to the discretion of countries.

GRI 6 contains a classification of goods in the sub-headings.

Importance of HS Code in the Import and Export of goods.

The HS harmonized system code is essential because it interprets the product’s information and enables both parties to avoid unintentional catalog-based confusion during the exchange.

The further components that heavily required HS Codes are as follows:

HS Code for Import and Export
The most crucial action for shippers to do before arriving at the import and export markets is to assign an HS Code.

The importance of the HS code could be considered by importers and exporters.

Most frequently, providers just acquire purchase orders from importers and send their products without having Export Import Data of an item’s HS code.

It is not a good business practice to ship before assigning an HS code as this can lead to significant issues that could be expensive, detrimental to both parties’ primary companies, and damaging to one’s reputation.

Following are the other elements where HS Codes are primarily required:

Import and export tariff rates are certain of the product category.

Acquire and analyze Global Trade data.

Internal taxes and liability to pay.

HS Code for Government Officials

HS Codes are significant for government officials to identify goods being imported and exported in order to acquire the proper taxes.

Harmonized System Codes are referred to as HS Codes.

HS classification codes can be seen as the last obstacle that products must overcome before shipping is complete.

Aside from aiding in the clearance of products through customs, these 6–10-digit numbers known as Harmonized Tariff Codes serve two primary functions and purposes:

They identify the goods that cross a nation’s borders for import or export.

Products are categorized and classified in a global system that is utilized for customs clearance.

How to Find HS Code with EximPedia?

HS codes are significant. A business must specify its business scope, which combines the HS codes of the goods it intends to import, export, and trade, as part of the registration procedure.

This list will ultimately determine whether the company needs additional licenses and what steps are required to be taken.

The HS Code list also assists exporters and importers in avoiding frequent foreign exchange issues such as exchange halts at the border, denial of access to import privileges, and additional fines.

EximPedia is a platform where you can obtain your product-specific HS code. They will help to find out the HS code for your products.

They also provide Import Export data, Global trade data, and Custom Data and provide you updated HS codes to grow your business greatly.

Customs

Customs, WCO train officers in technology- driven border security

Funso OLOJO

In a bid to strengthen border security through innovative data-driven approaches, the World Customs Organization – Organisation Mondiale des Douanes (WCO), in collaboration with the Nigeria Customs Service (NCS), concluded a five-day workshop on Friday, 6 December 2024, tagged “n-Ceen.”

The training, held at the Project Management Office of Trade Modernisation Project Office situated in the Service’s Management Quarters in Abuja, was aimed at equipping officers with skills in data gathering and analysis to enhance national security and enforcement operations.

Speaking at the closing ceremony, the Deputy Comptroller-General of Customs in charge of ICT/Modernisation, DCG Kikelomo Adeola, highlighted the strategic importance of the training in achieving the Service’s objectives.

According to her, “This training, organised in collaboration with the WCO, underscores the Comptroller-General of Customs’ commitment to secure our nation’s borders.

” No man is an island; we cannot achieve this in isolation. Collaboration, particularly with skilled personnel, is essential.”

DCG Adeola explained that the workshop provided officers with cutting-edge tools to protect lives and properties and also to proactively deploy interventions where most needed.

She also stated that the training will reduce risks, including mob actions against customs personnel.

The training was meticulously planned, with participants selected from various zones and units, including enforcement, intelligence, ICT, and investigations, to ensure continuity and the dissemination of expertise.

Jean Bigirimana, a WCO facilitator from Burundi, praised the NCS for embracing technology as a critical component of border security, explaining that, “the n-Ceen tool is designed to assist member countries in gathering intelligence and making informed decisions.”

“The n-Ceen application enables Customs administrations to collect and harmonise data, which can then be used to target high-risk cases effectively.

” During this workshop, we trained participants on the features and functionalities of n-Ceen, empowering them to apply this knowledge in their respective domains.” Bigirimana said.

Customs

From Cabin to the Cockpit

— the inspiring transformational story of DSC Balogun, the first female pilot in Nigeria Customs

Funso OLOJO

The remarkable transformation of Deputy Superintendent of Customs (Pilot) Olanike Nafisat Balogun from being a crew member to becoming a full fledged pilot in the air wing of the Nigeria Customs Service is an inspiring one.

DSC Balogun is a study in doggedness, determination, perseverance, resilience and commitment.

Balogun has thus make history as the first female pilot in the Nigeria Customs Service.

Born in Kaduna and a native of Odo-Otin Local Government Area, Osun State, Balogun’s journey began in 2002 when she was recruited as a Customs Assistant to serve as a cabin crew member in the Service’s Airwing Unit.

Speaking in a recent interview, DSC Balogun reflected on her journey, sharing how her unwavering ambition and the Service’s support enabled her transformation from a flight attendant to a licensed pilot.

“Staying in the Service when many of my colleagues opted for better-paying airline jobs was a tough decision, but I was determined to contribute to public service and achieve my dream of becoming a pilot,” she said.

Balogun’s career milestones include earning an Advanced Diploma in Air Ticketing and Cabin Services, a Master’s in Public Administration from Ahmadu Bello University, and eventually securing her Pilot Certification from the Flying Academy in Miami, Florida, with the NCS sponsoring her training.

DSC Balogun asserted that being the first female pilot in the NCS Air wing is credited to inspiring women within and beyond the Service never to relent in pursuing their dreams.

“My role as the first female pilot in the service reflects my commitment as a woman to advancing my passionate dream as well as the operational capabilities of the NCS” she added.

As she continues to fly for the NCS, Balogun remains passionate about inspiring others, stating, “I hope my journey motivates young Nigerians, especially women, to chase their dreams and break through barriers.”

The Comptroller General of Customs, Adewale Adeniyi, in a statement commended her dedication and described her achievement as a testament to the Service’s commitment to capacity building and innovation.

“Her story exemplifies what is possible with determination and institutional support,” Adeniyi said.

Customs

B’Odogwu, home-made customs trading platform, gains momentum at PTML

–— as more banks embrace local ICT platform

— PTML customs reaps revenue windfall

Funso OLOJO

B’Odogwu, an indigenous customs trading platform currently being test run at the Ports Terminal Multi services Limited(PTML) command of the Nigeria Customs Service, has gained a momentum in the command as more operators are embracing the new trading platform.

Already,17 banks have indicated their interests to sign on the platform to join the existing five banks currently hooked up to the trading platform.

In addition, the PTML Customs command has started to reap revenue windfall triggered by the new trading platform as it generated N44.9 billion in November, the highest monthly revenue ever generated in the history of the command.

An elated Area controller of the command, Comptroller Tenny Daniyan, said B’Odogwu trading platform has come to stay in the Command.

As a pilot command for the operation of the indigenous platform, Comptroller Daniyan advised stakeholders to embrace and rally round the new ICT platform as their own, adding that the command has parted ways with the old Customs platform NICIS11.

The Area Controller also debunked information alleging that four vessels have been unattended to at the PTML berth due to B’Odogwu failure is untrue.

He disclosed that the command met with some of the stakeholders earlier in the week where all issues bordering on the challenges experienced by agents were addressed and they were advised to engage the implementation team for further assistance

He added that to facilitate trade, the command has bent backwards by applying manual methods to process cargoes and has established interface with the terminal operator to accommodate port users that have made entries on the platform.

The Controller said most agents claiming inability to capture have not registered on the platform and urged them to come forward for capture to address any challenge.

The CAC said “B’Odogwu is a Nigerian baby that should be fed by Nigerians .

” We are weaning our baby from a foreign mother and I urge all Nigerians to support it.

“We are not going back to NICIS II. The use of NICIS II platform has come to an end in PTML as this is the position of the Service.

” We are aware that some of our agents are yet to be fully acquainted with the additional requirements that were not involved in NICIS II.

“As the problems come up, we are solving them.

“Note that the management has dispatched an implementation team here to ensure our stakeholders don’t suffer.

” We were disconnected from NICIS II three months ago and we have fully commenced implementation to grow our own teeth and serve the country better. We have left NICIS here in PTML.

“We are committed to get it right here before moving to Tin Can and other ports.

“Our turn around time for properly declared RoRo cargo is still two hours but this is dependent on compliance by the declarant.

“As a command, we will not sacrifice national security and revenue on the altar of trade facilitation.

” So far in November,292 bills of laden have been captured in November, 375 are yet to capture.

“As at today, Wednesday over 98 people have paid their duties under B’Odogwu platform as more banks are coming on board” he said