For those of you who frequently use ocean shipping, you must be familiar with the term "HS Code."
But for beginners, it may be unfamiliar.
So today, let me explain what an HS Code is.
What Is HS Code?
The HS code, short for Harmonised System code, is also known as the Customs Tariff Number in Chinese. It is primarily designed to facilitate the statistical management of imports and exports by customs authorities and to provide a universally accepted classification system for international trade-related goods.
In simple terms, the HS Code is used to standardize the classification of goods for customs purposes across different countries. It helps classify goods and determine the corresponding tariffs and other regulatory measures. The HS Code adopts a six-digit numerical coding system based on international standards, with codes beyond six digits being determined by individual countries for specific goods.
Malaysia HS Code
In Malaysia, HS codes typically consist of 9 to 10 digits. The breakdown of the code is as follows:
- The first 4 digits represent the "heading," which signifies the category of the goods. This code is globally standardized and can be looked up online.
- The 5th and 6th digits represent the "subheading," providing further detail on the goods, such as material classification and intended use.
- The 7th to 10th digits represent the "item," with codes beyond 6 digits being determined by individual countries for specific goods.
While you can search for HS codes on official websites, such as the government's customs portal, it's important to note that accuracy cannot always be guaranteed. Therefore, I recommend consulting your shipping carrier or reaching out to us for assistance to ensure the correct HS code for your goods.
Why HS Code Is So Important?
According to the latest regulations from the Malaysian customs authority, importers are required to accurately classify imported goods.
For all goods imported into Malaysia, the correct HS Code must be filled in on the documentation.
Incorrect classification of goods can result in errors in the calculation of tariffs and other taxes, leading to demands for repayment of incorrect duties or taxes, substantial fines, or even the detention of goods.
Yes, at this point, you should have a basic understanding of what HS Codes are and their importance in international trade, especially for imports into Malaysia.
For importing goods from abroad into Malaysia, various documents such as Form E, K1 Form, among others, need to be prepared.
I recommend utilizing our ocean freight shipping services because we can assist you in resolving all transportation-related issues and ensure a smooth importing process.
