How to Find the HSN Code and Custom Duty for Your Products: A Complete Guide

If you are an exporter or importer of goods in India, you need to know the HSN code and custom duty of your products. HSN stands for Harmonized System of Nomenclature, which is a globally accepted classification system for products. It helps to identify the type, quantity, and value of the goods for customs purposes.

Custom duty is a tax levied by the government on the import or export of goods. It is based on the value, weight, dimensions, and other factors of the goods. Custom duty helps to protect the domestic industry, regulate trade, and generate revenue for the government.

In this article, we will explain how to find the HSN code and custom duty for your products, and why it is important to do so. We will also provide some tips and resources to help you with the process.

What is HSN Code and Why is it Important?

HSN code is a six-digit code that represents a specific product category. It is based on the Harmonized Commodity Description and Coding System (HS), which is developed by the World Customs Organization (WCO). The HS covers over 5,000 product groups and 98% of the world’s merchandise trade.

HSN code is important for several reasons:

It helps to standardize the classification of goods across different countries and regions.
It facilitates the collection and analysis of trade statistics and data.
It simplifies the customs procedures and documentation for importers and exporters.
It reduces the risk of errors, fraud, and disputes in international trade.

How to Find the HSN Code for Your Products?

There are different ways to find the HSN code for your products, depending on your level of knowledge and experience. Here are some of the common methods:

Use online tools and databases

There are many online platforms that provide HSN code search services, such as https://www.exportgenius.in/hs-code/, https://www.seair.co.in/hs-code-search.aspx, https://www.zauba.com/hs-code, etc. You can enter the product name or description, and get the corresponding HSN code and other details. However, you should verify the accuracy and validity of the information before using it.

Refer to official sources

You can also consult the official sources of HSN codes, such as https://www.wcoomd.org/en/topics/nomenclature/instrument-and-tools/hs-nomenclature-2017-edition/hs-nomenclature-2017-edition.aspx (for global HS), https://www.cbic.gov.in/resources//htdocs-cbec/customs/cs-act/notifications/notfns-2017/cs-nt2017/csnt50-2017.pdf (for Indian HS), etc. These sources provide the complete list of HSN codes and their descriptions, along with explanatory notes and rules for interpretation. However, you may need some technical knowledge and expertise to navigate through these sources.

Seek professional help

If you are not sure or confident about finding the HSN code for your products, you can always seek professional help from experts or consultants who specialize in this field. They can help you with the research, verification, and documentation of the HSN codes for your products. However, you may have to pay a fee for their services.

How to Find the Custom Duty for Your Products?

Once you have found the HSN code for your products, you can use it to find the custom duty applicable to them. Custom duty varies depending on the country of origin, destination, and other factors. Here are some of the common methods to find the custom duty for your products:

Use online calculators and simulators

There are many online tools that provide custom duty calculation and simulation services, such as https://www.exportgenius.in/custom-duty-calculator/, https://www.dutycalculator.com/, https://www.simplyduty.com/, etc. You can enter the product details, such as HSN code, value, quantity, origin, destination, etc., and get an estimate of the custom duty payable. However, you should note that these tools are only indicative and not binding, and may not reflect the latest changes in customs regulations.

Refer to official sources

You can also consult the official sources of custom duty rates, such as https://www.wto.org/english/tratop_e/tariffs_e/tariff_data_e.htm (for global tariffs), https://www.cbic.gov.in/resources//htdocs-cbec/customs/cs-tariff2019-20/cst2019-20-idx.pdf (for Indian tariffs), etc. These sources provide the complete list of custom duty rates for different products and countries, along with exemptions and concessions. However, you may need some technical knowledge and expertise to navigate through these sources.

Seek professional help

If you are not sure or confident about finding the custom duty for your products, you can always seek professional help from experts or consultants who specialize in this field. They can help you with the calculation, verification, and payment of the custom duty for your products. However, you may have to pay a fee for their services.

Tips and Resources to Help You with HSN Code and Custom Duty

Finding the HSN code and custom duty for your products can be a challenging and time-consuming task, especially if you are new to international trade. Here are some tips and resources to help you with the process:

Do your homework

Before you start looking for the HSN code and custom duty for your products, you should do some basic research on your products and their characteristics, such as name, description, composition, usage, etc. This will help you to narrow down the search and avoid confusion and errors.

Be specific

When you search for the HSN code and custom duty for your products, you should be as specific as possible. For example, instead of searching for “shoes”, you should search for “leather shoes” or “sports shoes” or “women’s shoes”, etc. This will help you to find the most accurate and relevant results.

Compare and verify

When you find the HSN code and custom duty for your products, you should not rely on a single source or tool. You should compare and verify the information from multiple sources and tools, and check for any discrepancies or inconsistencies. You should also update yourself with the latest changes and developments in customs regulations and policies.

Seek guidance

If you have any doubts or queries about finding the HSN code and custom duty for your products, you should not hesitate to seek guidance from the authorities or experts. You can contact the customs department of your country or destination country, or consult a professional agency or consultant who can assist you with the process.

How HSN Code Custom Duty Affects the Global Demand in the Industry

The Harmonized System (HS) is a global system of nomenclature that classifies products into categories and subcategories based on their characteristics and uses. The HS is used by more than 200 countries and territories for customs purposes, trade statistics, tariff negotiations, and other purposes. The HS consists of 21 sections, 96 chapters, and thousands of headings and subheadings, each with a six-digit code. The HS is maintained by the World Customs Organization (WCO) and is updated every five years to reflect changes in technology and trade patterns.

The Role of HSN Code Custom Duty in International Trade

The HS Nomenclature (HSN) is the Indian adaptation of the HS, which adds two more digits to the six-digit code to create an eight-digit code for more specific product identification. The HSN code is used by the Indian customs authorities to determine the applicable customs duty for imported and exported goods. The customs duty is a tax levied by the government on the import or export of goods, which affects the price and competitiveness of the products in the global market.

The HSN code custom duty varies depending on the product category, the country of origin or destination, the trade agreement or preference scheme, and other factors. For example, according to Zauba.com, a website that provides import and export data for India, the customs duty for rubber belts under HSN code 40103999 ranges from 7.5% to 10%, depending on the country of origin. Similarly, the customs duty for electric inverters under HSN code 85044010 ranges from 0% to 20%, depending on the trade agreement or preference scheme.

The Impact of HSN Code Custom Duty on the Global Demand in the Industry

The HSN code custom duty can have a significant impact on the global demand in the industry, as it affects the price, availability, quality, and competitiveness of the products. A higher customs duty can make the imported products more expensive and less attractive for the consumers, while a lower customs duty can make them more affordable and competitive. A higher customs duty can also encourage domestic production and protect local industries from foreign competition, while a lower customs duty can facilitate trade and promote economic integration.

The impact of HSN code custom duty on the global demand in the industry depends on various factors, such as the elasticity of demand, the availability of substitutes, the degree of competition, and the consumer preferences. For example, if the demand for a product is elastic, meaning that it is sensitive to price changes, a higher customs duty can reduce the demand significantly, while a lower customs duty can increase it substantially. On the other hand, if the demand for a product is inelastic, meaning that it is not sensitive to price changes, a higher or lower customs duty may have little effect on the demand.

The Future Trends of HSN Code Custom Duty in the Global Market

The future trends of HSN code custom duty in the global market are likely to be influenced by several factors, such as the changes in technology and trade patterns, the developments in trade agreements and preference schemes, and the challenges posed by environmental and social issues. The HS is updated every five years by the WCO to reflect these changes and developments, which may result in new or revised codes and duties for different products. For example, according to U.S. Customs and Border Protection (CBP), some of the recent legal actions relating to imports from Russia and Belarus include additional duties on certain steel products under Chapter 72 of the HS.

The future trends of HSN code custom duty in the global market may also depend on the negotiations and outcomes of various trade agreements and preference schemes that aim to reduce or eliminate tariffs and non-tariff barriers among participating countries or regions. For example, according to U.S. International Trade Commission (USITC), some of the current trade agreements that affect U.S. imports include:

United States-Mexico-Canada Agreement (USMCA), which replaced North American Free Trade Agreement (NAFTA) in 2020
Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA), which entered into force in 2006
United States-Singapore Free Trade Agreement (USSFTA), which entered into force in 2004
United States-Chile Free Trade Agreement (USCFTA), which entered into force in 2004
United States-Morocco Free Trade Agreement (USMFTA), which entered into force in 2006
United States-Australia Free Trade Agreement (USAFTA), which entered into force in 2005
United States-Jordan Free Trade Area Implementation Act (USJFTA), which entered into force in 2001
United States-Israel Free Trade Area Implementation Act of 1985 (USIFTA), which entered into force in 1985
United States-Caribbean Basin Trade Partnership Act of 2000 (CBPTA), which extended and expanded Caribbean Basin Economic Recovery Act (CBERA) in 2000
African Growth and Opportunity Act (AGOA), which was enacted in 2000 and extended until 2025
Generalized System of Preferences (GSP), which was established in 1976 and expired in 2020

The future trends of HSN code custom duty in the global market may also be affected by the challenges posed by environmental and social issues, such as climate change, human rights, labor standards, and health and safety. These issues may require the adoption of new or stricter regulations, standards, or certifications for the products, which may increase the costs or complexity of trade. These issues may also influence the consumer preferences and demand for the products, which may favor more sustainable or ethical alternatives.

The HSN code custom duty is an important factor that affects the global demand in the industry, as it influences the price, availability, quality, and competitiveness of the products. The HSN code custom duty is determined by the HS, which is a global system of nomenclature that classifies products into categories and subcategories based on their characteristics and uses. The HSN code custom duty varies depending on the product category, the country of origin or destination, the trade agreement or preference scheme, and other factors. The HSN code custom duty can have a significant impact on the global demand in the industry, depending on the elasticity of demand, the availability of substitutes, the degree of competition, and the consumer preferences. The future trends of HSN code custom duty in the global market are likely to be influenced by several factors, such as the changes in technology and trade patterns, the developments in trade agreements and preference schemes, and the challenges posed by environmental and social issues.

References:

http://www.wcoomd.org/en/topics/nomenclature/overview/what-is-the-harmonized-system.aspx

http://www.wcoomd.org/en/about-us/wco-members/membership.aspx

https://www.cbp.gov/trade/programs-administration/determining-duty-rates
https://hts.usitc.gov/
https://en.wikipedia.org/wiki/Harmonized_System

https://www.wcoomd.org/en/topics/nomenclature/instrument-and-tools/hs-nomenclature-2017-edition/hs-nomenclature-2017-edition.aspx

https://www.cbic.gov.in/resources//htdocs-cbec/customs/cs-act/notifications/notfns-2017/cs-nt2017/csnt50-2017.pdf

https://www.cbic.gov.in/resources//htdocs-cbec/customs/cs-tariff2019-20/cst2019-20-idx.pdf

https://www.exportgenius.in/hs-code/

https://www.seair.co.in/hs-code-search.aspx