To simplify the procedure for moving products across the border within the framework of the Customs Union (CU) , a whole system of classification of goods was developed. This system is called TN VDE TS.
HS codes - what is it?
The system, or, as it is also called, the classifier of goods, is successfully used by the bodies of the Customs Union. The system itself, in turn, is constantly being developed and supplemented by each of the participating countries of the CU. In the Russian Federation, the bodies of the Federal Customs Service are developing and supplementing the classifier under discussion. Today you will learn how to decrypt HS codes , and also get comprehensive information on the subject under discussion.
About the classifier
Each product, according to the Commodity Nomenclature of Foreign Economic Activity of the Customs Union, was assigned codes. They consist of one numbers and, knowing how to read them, it is possible, only relying on one code, to characterize the goods. The correct compilation of codes is observed by authorized representatives of the Customs Union. The most common are ten-digit codes, but some types of goods are assigned 13-digit codes. They are indicated by declarants during the implementation of certain stages of customs procedures. Customs codes of foreign trade activities greatly facilitate the passage of customs clearance, while facilitating the procedure for calculating the duty on export (import) of goods.
The classifier itself has 21 sections, which is divided into 99 groups. There are three groups of products that are not currently used. These include goods of groups 77, 98 and 99.
What is classification based on?
When creating the HS codes, a number of criteria are used. The main ones are:
1. The material that served as the raw material for the manufacture of the goods.
2. The functions that the exported (imported) product performs.
3. The degree of processing of goods. In other words, how much the product is made.
4. Mass in kilograms, which is the main unit used to measure goods, according to the classification discussed in the article.
What is a code of TN FEA of the Customs Union?
So that you never again have questions about the values of the numbers of the customs classifier, the following are illustrative examples that will allow you to understand this issue.
Let's analyze the HS code on the example of beet sugar. As noted above, a product code usually consists of ten digits. The code is read from left to right and is divided into four main groups.
- Suppose the first two digits are 17. They indicate that the imported goods refer to goods that contain sugar in their composition, or that the imported goods are sugar. The first two digits are called the general product group. If the group number is below 10, then it is written with a zero (for example - 07).
- If we consider the first four digits (for example, 1701), then we can determine that we have sugar in front of us, but from what composition it will be impossible to understand without subsequent digits. The first four digits are called the heading.
- The first six digits, in turn, indicate a commodity subheading. For example, the value of code 170112 can be interpreted as beet sugar.
- In the last four digits are clarifying points regarding the imported goods. The full product code is called a subheading. It contains moments that clarify the smallest details that relate to the product. For example, data on changes, the size of customs duties and other information.
Summing up the results of this block of the article, it can be noted that the HS code of foreign trade activities of the vehicle consists of four parts:
1) The first two digits are called the product group.
2) The first four digits are called the commodity position.
3) Commodity subheading - the first six digits.
4) Commodity subheading - the entire product code.
Classifier prototype
The product code for the FEA was not always in use by the Customs Union. Once its function was performed by the Harmonized System, which was successfully used in customs procedures between the participants of the European Union. She served as a prototype of the TN VED TS. But in the course of constant improvements, the classification system discussed in the article received a number of changes and now it is significantly different from the Harmonized system.
It is also worth noting that, according to new regulations, products that are classified according to the HS standards may not receive permission to import through the territory of the Russian Federation and other countries participating in the CU. According to the law, the authorized customs authority may not take into account the product code that the manufacturer or supplier has appointed. In other words, HS codes are mandatory when it comes to importing goods across the border of the countries of the Customs Union.
Who is responsible for product classification?
The main authorized person involved in the classification of products is the declarant. In some cases, the representative of the declarant classifies the products according to the HS. In this case, it is mandatory to control the correct classification by the authorized customs authority. When checking the correctness of the code, the customs authority has the right:
1) confirm that the code is composed correctly, and skip the goods to other customs procedures;
2) reassign the customs code;
3) oblige the declarant to reassign the code, which is extremely rare.
In the case when the authorized bodies of customs control have no doubts that the HS codes are correctly compiled, this code will be used to determine the amount of customs duty.