Every manufactured product requires a unique code to be classified and sold according to the process used and the components that went into its manufacturing.
The Manufacturing Marking System or the Harmonized Commodity Description and Coding System or the HS Code is widely used worldwide for this purpose as it has laid down universal rules that help standardize trade across countries.
What are HS Codes?
HS codes are the harmonized system of commodity classification, a set of rules used by countries to classify different products, services, and raw materials. They are used by countries participating in the World Trade Organization (WTO) and those that do not participate.
The purpose of HS codes is to standardize the way goods are classified so that statistical information can be compared between countries. This helps traders determine what they need to pay when importing or exporting goods from other countries.
The HS has been published in a series of documents known as the “HS Series,” which contain codes used to classify goods according to their purpose, characteristics, or use. Goods are classified under different chapters according to their nature and use.
Each chapter contains several headings and subheadings, with each header representing a group of related products. HS codes are used for all commodities, including agricultural products, clothing and footwear, chemicals, metals and minerals, fuels and related products, machinery, electrical equipment, appliances, etc.
The Importance of HS Codes
HS codes are used to classify goods for customs clearance. These codes are based on the harmonized system, an international standard for organizing products. For example, if you want to import a product from China and ship it to the United States, you need to know its HS code.
- The Harmonized System (HS) is a six-digit classification system developed by the World Customs Organization (WCO). It is used by more than 140 countries worldwide and has become an international standard for trade.
- The first two digits of an HS code refer to the major groups of products being imported or exported. The last four digits refer to more specific subcategories within those groups. For example, 1210 refers to cocoa beans or cocoa paste, while 12110 relates to cocoa beans storable under 18% humidity and packages in containers not exceeding 25 kg each; and 121109 means cocoa beans in bulk form (not packaged).
- Each country has its list of HS codes used for customs only within its borders; these lists can vary slightly from one country to another, but they all follow the same basic format outlined.
How To Use HTS Codes To Classify PCBA?
For those who don’t know, the HTS code is a code that is used by countries for classifying their products. The World Customs Organization (WCO) sets the rules for assigning this code.
These codes are broken down into sub-chapters, making it easier for customs officials to identify the product being imported or exported.
The primary purpose of using these codes is so that countries can collect taxes on goods they import or export based on the type of goods and not just based on their physical characteristics such as weight or volume.
When you ship goods internationally, you need to declare them at customs with their corresponding HTS code so that they can be charged tax correctly.
A company like us can help you with this process by providing the correct information about your product so that customers don’t have any problem with custom regulations when importing goods into their country.
What is the 6-Digit Harmonized System Code for An Assembled Printed Circuit Board?
The 6-Digit Harmonized System Code for An Assembled Printed Circuit Board is 84733030.
The HTS organizes products into 10-digit chapters, 99 subchapters, and 5,000 headings. The first two digits of each code are always the same and identify the branch; the last four digits identify the product within that chapter.
The Harmonized Tariff Schedule (HTS) is a system of harmonized codes used by U.S. Customs and Border Protection to classify imported goods. The HTS organizes products into 10-digit chapters, 99 subchapters, and 5,000 headings.
Is The 8-Digit Classification Enough To Get A PCB Assembly Imported?
Not all PCB assemblies are eligible for duty-free treatment under the NAFTA rules of origin. This is because they may not meet the requirements for classification under the Harmonized Schedule (HS) code system.
The HS code system is an international nomenclature that classifies goods following their end users and provides a joint base for customs tariffs and other trade statistics.
It is administered by the World Customs Organization (WCO). The United States uses this system as its basis for tariff rates, rules of origin, and product standards.
You might be aware of cases where a manufacturer could not import PCB assemblies from China into Canada because they failed to meet the requirements set out in Chapter 84 of the NAFTA Rules of Origin (ROO).
In some cases, this occurred even though the manufacturer had obtained an 8-digit HS Code from China that matched Canada’s tariff schedule exactly!
In other words, although it appeared that there was no problem with classification under Chapter 84 ROO (because both Canada and China were using 8-digit codes), this was not enough to ensure duty-free status under NAFTA.
How to Declare Your PCB Assembly Shipment At Customs?
Customs is a department of the government that deals with the collection of taxes on imported goods. Declaring your PCB assembly shipment at customs is similar to how you would communicate any other type of shipment.
- Step 1: Find Out the Value of Your Goods
The first thing you should do is find out the value of your goods. The value of goods is an essential factor when declaring goods at customs, and it must be stated correctly. If you are not sure how much the cost of your interests is and how to calculate them, please get in touch with us for assistance.
- Step 2: Choose an Appropriate Method of Transportation
It’s imperative to choose an appropriate method of transportation for your goods. If you choose the wrong form of transport, it may cause delays or even affect the delivery time of your interests.
Therefore, it’s better to contact us before shipping our product so that we can help you choose a suitable method according to your requirements.
Top 5 Uses of HS Code for PCB Assembly
- To Get The Best Import Duty
The HS codes classify goods based on their use, content, and other characteristics. The customs authorities use this code to determine the correct tariff rates for your interests.
The correct HS code guarantees you a lower rate of duty on your products and increased competitiveness in your market.
- Reduce Costs
Using an incorrect HS code means that there is a chance that some of your products will be classified as more expensive than they are, meaning that you could be paying too much money in taxes or having to wait longer for payment from customers due to delays.
With customs clearance! Using a correct code means receiving accurate tariff rates and reducing costs by paying less tax overall!
- To Avoid Paying Double Duty On Raw Material
Suppose you import bare boards and assemble them in India with local components (like connectors, etc.). In that case, it’s better to give HS Code 85231100 instead of 84722090 because it also covers that component that needs to be assembled during the manufacturing process.
So if anyone has already imported PCBs under 84722090 and wants to re-export those boards after assembling them, he needs to pay the double duty, which will significantly increase the cost of the final product!
- To Comply With Government Rules and Regulations
It is essential to understand the rules and regulations imposed by your country’s government. The HS code defines the classification of goods by their end-use, which helps comply with these rules.
- To Sell Your Products Globally
If you want to sell your products globally, it is important to understand the HS code of each product you are selling. This will help you in understanding the export procedures and other related issues.
- To Manage Inventory Efficiently
The HS code can manage inventory efficiently by storing all your products according to their category and subcategory.
For example, if you have a store that sells electronics, all electronic items will be stored under “electronics” or “computer parts,” etc. Similarly, if you have a store that sells clothing, all clothing items will be held under one category called “clothing” or “apparel,” etc.
This makes it easier for you to find out what you need when multiple products are available in your store.
Final Thoughts
If you are an electronic distributor looking for small-volume PCB assembly, you might need to become an HS Code expert. A high-performing PCB assembly house will try its best to match the HS Codes of your electronic components with the assembly codes you have requested.
If there is any mismatch and a reject, it’s losing time, money, and trust for both sides-manufacturers and assemblers.
This article will help you understand how to choose the right assembly house by making sure that they are HS Code experts, or else you can save yourself from all the trouble and choose us to do your small-volume PCB assembly.
HS codes need to be applied correctly for an item to be released by customs. Simply using the correct HS code helps a lot when shipping packages through customs.
