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What is an HS-Code?

HS-Code stands for Harmonized System Code. It is developed and maintained by the World Customs Organization in Brussels. HS-Codes are used by Customs Authorities worldwide to categorize products. Based on the HS-Code of the product you want to export there are specific requirements, import duties, tariffs, or taxes you may need to pay.

What does an HS-Code look like?

The HS-Code is a ten-digit number. The first six are the same worldwide. The numbers after that differ per country. Be aware of this if you have foreign suppliers sending you codes for the parts you get from them.

Let’s take a mobile phone as an example. The correct HS-Code is: 8517 120000 This code is based on the MY’s  TARIFF  goods nomenclature database on the Malaysia  Customs website. In this case 0 0 00 is a further categorization by the Malaysia Customs Authority.

8517 120000 – Telephones for cellular networks or for other wireless networks

Where Do I Get an HS Code?

Assigning an HS Code to a product is called HS Classification. Classifying a product can be done based on its function, form, or composition. It can be a difficult and challenging process.

For example:

“HS classification is not always straightforward. Some water filter, for example, is not classified under the same heading if they have a heater function water.  Below is an example. Due to their function is different, the heading categorized differently.

Example:

8418 69 3000 – Cold Water Dispenser

8516 10 1100 – Water dispenser fitted only with the water heater for domestic use.

There are several websites that can help you find the right HS Code for your product:
As for Malaysia, you may visit http://mysstext.customs.gov.my/tariff/

What Happens When a Product is Classified Incorrectly?

Incorrectly classifying a product can lead to non-compliance penalties, border delays, seizure of the products, or even a denial of import privileges. As the exporter of the products, you are responsible for correctly classifying them, and therefore you are liable. Because classifying is complicated this can be a risk.

When in doubt, it is best to seek expert advice and let customs specialists classify your products. We, Ansarcomp are here to assist. You may drop your enquiry to http://bit.ly/AC-RFQ or you may visit our website at ansarcomp.com.my

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