Many professionals in international trade and freight forwarding have found themselves perplexed by the lengthy numerical sequences on customs declaration forms. This confusion intensified after August 1, 2018, when commodity codes expanded to 13 digits. This article provides a comprehensive explanation of the new HS code system to help trade professionals navigate the updated declaration process with confidence.
The 13-Digit Code: A Product of Customs-Integration
The additional three digits represent a significant administrative reform - the integration of customs and inspection procedures. Previously, these were separate systems requiring different documentation. The new 13-digit code serves as a unified identifier, streamlining the declaration process while maintaining all necessary regulatory information for both customs and inspection authorities.
Breaking Down the 13-Digit Structure
The numerical sequence follows a specific logical structure:
- First 8 digits: These constitute the standard HS code from the "Import and Export Tariff of the People's Republic of China" and the "Customs Statistical Commodity Directory."
- Digits 9-10: These supplementary numbers serve customs regulatory purposes.
- Digits 11-13: These represent inspection-related codes, with specific sequences (such as 999, 666, 101, or 110) indicating particular inspection requirements.
Universal Application
Importantly, the 13-digit code applies to all import and export goods, not just those requiring inspection. This universal application standardizes documentation across all trade transactions.
Additional Changes in the New Declaration System
While the extended HS code represents the most visible change, trade professionals should also note adjustments in declaration elements and supporting documentation requirements. Staying informed about current customs policies remains essential for maintaining compliance and ensuring smooth customs clearance.
The implementation of 13-digit HS codes reflects broader trends in trade facilitation and regulatory integration. Though the transition may present initial challenges, understanding the system's logic enables efficient navigation of the updated procedures, contributing to more streamlined international trade operations.