Harmonized System and How to Find HS Code Tariffs for Importers-Exporters
For those who are involved in the import-export sector, they will definitely be familiar with the Harmonized System (HS). Through this HS Code, exporters and importers can find out how much tax (tax and duty) must be paid by knowing the HS Code rate in advance in the calculation.
To calculate the amount of the import tax, you must know the rates of Import Duties, Value Added Tax (PPN), Income Tax (PPh) and Prohibitions or Restrictions (Lartas) listed on each HS Code of the classification of goods.
This Harmonized System is closely related to the Directorate General of Customs and Excise (DJBC) as a gateway for international trade. Every item that goes out or enters Indonesia has a different tax rate, depending on the classification of goods for which the tariff is set.
Classification of goods is a list of classifications of goods made systematically to facilitate trade pricing, transportation administration, and statistical collection. So, it is certain that those of you with a business engaged in the export-import sector are required to know this HS Code Tariff. To find out how much the Harmonized System tariff is on an imported product, you can look it up on the Customs portal (https://www.beacukai.go.id/btki.html)
FAQ About HS Code:
- Is HS Code same for all countries:
The first six digits of HS code (HTS code) are same in all countries. But countries can add additional digits to categorize and define commodities at more detailed level without modifying or changing first six digits.
- Why HS code are important?
An HS code consist of at least six digits and is used by customs to classify the product being shipped. That way it can accurately calculate taxes and duties and apply any necessary restrictions. If you don’t include the HS code on the commercial invoice and other shipping documents, you risk the receiver paying the wrong tax and could possibly delay the shipment.
- How do I get HS code?
You can get one on your country’s government website. You can also use the HS code search tools online – just type in a detailed goods description and you’ll get your code.
