An HSN code stands for the Harmonized System of Nomenclature. It is a standardized international system of names and numbers used to classify traded products in a systematic and organized way.
What is the purpose of HSN code ?
The primary purpose of HSN codes is to create a uniform system for the classification of goods worldwide, which simplifies international trade, streamlines customs clearance processes, and ensures accurate calculation of duties and taxes (such as GST in India).
Who is the developer of HSN code ?
The system was developed and is maintained by the World Customs Organization (WCO).
What is the structure of HSN code?
The HSN system categorizes over 5,000 commodity groups, each identified by a unique six-digit code globally. Countries can add more digits for further classification (e.g., in India, HSN codes are typically eight digits).
It is used by over 200 countries and covers nearly 98% of the goods involved in international trade.
By using HSN codes, businesses, customs officials, and tax authorities can easily identify products, making trade and tax administration simpler and more transparent.
Summary
Article Name
HSN code
DescriptionAn HSN code stands for the Harmonized System of Nomenclature. It is a standardized international system of names and numbers used to classify traded products in a systematic and organized way.
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Napoleon
