HS Code Classification

Harmonized System or HS is a list of classifications of goods that are arranged systematically with the aim of simplifying tariffs, trade transactions, transportation and statistics from previous classification systems. Currently, the HS Code classification in Indonesia is based on the Harmonized System and is contained in a tariff list, namely the Indonesian Customs Tariff Book (BTKI).

The preparation of the Harmonized Commodity Description and Coding System or Harmonized System began in 1986 by a study group from the Customs Cooperation Council (now the World Customs Organization), and seventy countries, mostly European countries, ratified and signed the HS convention, but now almost all countries participated in ratification, including Indonesia which ratified it through Presidential Decree no. 35 of 1993.

The objectives of creating this HS include:

• Providing uniformity in the systematic classification of item lists
• Facilitates data collection and analysis of world trade statistics
• Provides an official international system for coding, describing and classifying goods for trade purposes

How to Use HS Code

HS uses number codes to classify goods. These number codes include descriptions of goods that are arranged systematically. The numbering system in HS is divided into chapters (2-digits), headings (4-digits), and sub-headings (6-digits) and ASEAN Harmonized Tariff Nomenclature (AHTN) tariff headings and Indonesian Customs Tariff Book (BTKI) or tariff headings national (8-digit) with the following explanation:

For example HS code 0104.10.10 for sheep imported live for breeding purposes

01.04.10.10

_ Chapter 01 Live Animals

__ Post 01.04 live sheep and goats

___ Subheading 0104.10 live sheep

____ Tariff Post 0104.10.10 live sheep, pure-bred breeding

The chapter shows the classification of an item through the first two digit numbers, the example above shows that the item is included in Chapter 01

The next two digits or the first four digits indicate the heading or heading in the chapter referred to previously, this example shows that the item is entered in heading 01.04

The first six digits indicate the sub-heading or sub-heading for each heading and chapter in question. In the example above, the goods are included in sub-heading 0104.10

The first eight digits in the example above, the goods are included in sub-heading 0104.10.10 is the heading that comes from the text AHTN and BTKI indicating the national tariff heading, this tariff heading shows the amount of charges (BM, PPN, PPnBM, PPh or Excise)

HS in its original form from the WCO has six digit numbers for classification, each country that is a signatory to the HS convention or contracting Party can develop the six digit number classification to be more specific in accordance with the policies of their respective governments but still based on the six digit HS provisions. In Indonesia the classification system uses an 8 digit numbering system which is a further elaboration of the sub-headings in the six digit HS

The HS Code continues to be updated to cover new products traded internationally. Therefore, it is important to always update the latest information about HS Code classification.

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