Every business that will be importing or exporting goods to Bangladesh will require HS codes. An appropriate HS code identifies the duty and tax obligations as well as compliance standards of a product. This is a guide covering what you should know about the hs code bangladesh.
Learning about HS codes Bangladesh
What is an HS code
The Hs code is a standardized database of numbers created by the world customs organization (WCO) to identify the products in international trade. The system is hierarchical: two first digits are the chapter, two subsequent ones the heading, two last ones the international subheading. To code and tabulate national tariffs and statistics, Bangladesh extends the code to 8 (or 10) digits.
How to find the correct HS code in Bangladesh
Locating the relevant HS code will be systematic and depends on the tariff system of Bangladesh. Begin with a description of the product in terms of its composition, use and material. Find where the section and chapter of the item is in the Bengal Customs Tariff, section 21 and chapter 98.
How to get the HS code for a product
The proper HS code is to be found in the Bangladesh Customs Tariff which is done via the National Board of Revenue (NBR). The Import Export Hub is an online platform which offers HS code-related details, such as the certifications required, applicable tariff rate, and benefits on duty. Additional guidance can also be found in the WCO Explanatory Notes, and any NBR circulars. Indeed, enterprises may request an advance decision by the NBR that gives a binding decision on a particular product.
How to use the HS code
The HS code features in any customs related documents in imports and exports. In the case of imports, it should be indicated on the bill of lading and customs entry forms to find out the rates of duty and tax paid. In the case of exports, the code assists in the making of any form of duty benefits that may be available as well as in the collection of proper trade statistics.
Importance of HS codes for businesses in Bangladesh
Correct HS code classification is a major concern so that businesses will not suffer customs penalties. Mistaken identification may either lead to unjustified excessive payment of duties or undue payment of fines and legal penalties. The right code also guarantees availability of any preferential trade agreement duty rates.
Consequences of incorrect HS code usage
Classification of the wrong product may prove to be hazardous to the business in terms of money and law. The wrong HS code can lead to fines, withhold shipments, or loss of goods by customs authorities. Improper classification may also result in problems with the customs on duty rates.
Discussing the frequently asked questions
What is HS code and its usage in Bangladesh?
The HS code is a standardized figure, applied in the classification of goods as regards to customs, duties and statistics of trade in Bangladesh.
Where can I get the right HS code of my product in Bangladesh?
Refer to the Bangladesh Customs Tariff as published by NBR or visit Import Export Hub.
What will become of me in case I use the wrong HS code of my shipment?
Mistaken HS codes would result in delays at the customs, fines and the goods seizure.
Is it possible to obtain a binding classification of my product in Bangladesh?
Yes, companies can seek an advance ruling on the NBR seeking a binding classification.
Is Bangladesh a 10-digit HS user?
True, Bangladesh also stretches the international 6-digit code to 8 or 10 digits to national tariff and statistical purposes.
Summary
Trade compliance in Bangladesh heavily depends on Hs code, which identifies the duty rate, compliance and the trade statistics. Companies should adopt a systematic method of categorizing the goods in the proper way and checking the selection through official tariff schedules and NBR guidelines. Proper use of HS code is a requirement to avoid fines, ease the clearance of merchandise at the customs and enable a cost-effective supply chain.
