You’ve carefully packaged your goods and have prepared them for their journey from Myanmar to an international market. But before they take flight via air cargo shipping, they encounter a crucial checkpoint—customs clearance.
With the complex regulations and documentary requirements, it’s natural to feel overwhelmed. However, one of the keys to navigating this process seamlessly and ensuring compliance with trade regulations lies in understanding the Harmonized System (HS) code. These standardized HS code classifications act as a universal language for identifying your shipments in the world of international shipping.
So, if you’re running a business in Myanmar looking to expand your reach globally, this guide will help you master the basics of HS codes. You’ll also learn how it can become the foundation for efficient and successful international shipping.
What are HS Codes and why do they matter?
The Harmonized System, maintained by the World Customs Organization (WCO), is a crucial system for classifying goods in international shipping. Also, its structure uses a hierarchical numerical system—two digits identify the chapter, four digits the heading, and the last digits represent the subheading. It’s also worth noting that each level provides increasing specificity in categorizing products.
These HS codes are essential for various purposes, including determining tariffs and collecting trade statistics.
But what role do the HS codes play in ensuring smooth customs clearance?
Importance for customs clearance
In the customs clearance process, HS codes are used to determine the applicable tariffs, taxes, and import/export regulations for specific goods. By providing a standardized classification system, HS codes ensure that customs officials can efficiently and accurately process shipments, facilitating the smooth flow of goods across borders.
For example, the HS codes in Myanmar are based on the ASEAN Harmonized Tariff Nomenclature (AHTN), which is itself based on the WCO Harmonized System1. This alignment ensures uniformity in the classification of goods within ASEAN member countries and aids in the customs clearance process.
Benefits for shippers
Accurate use of HS code offers numerous benefits for individuals, organizations, and businesses involved in international shipping. Correct classification helps to avoid delays in customs clearance, prevents penalties, and minimizes the risk of unexpected costs. Furthermore, it contributes to the predictability and efficiency of the supply chain.
Compliance with trade regulations
Accurate HS code classification is also crucial for complying with specific import and export laws. As mentioned, the HS codes in Myanmar incorporate the ASEAN Harmonized Tariff Nomenclature (AHTN). Adhering to these codes ensures that shippers meet all regulatory requirements, contributing to the integrity of international shipping practices and facilitating trade within the region.
How to find the correct HS code in Myanmar
For businesses in Myanmar engaged in international trade and shipping, it’s essential to determine the accurate classification of goods using the Harmonized System codes. To locate the appropriate HS code, the first thing you need to do is access the official Myanmar Trade Portal. Once you’re there, you can follow these steps to look up the HS code that you need efficiently:
- Conduct a search: Utilize the portal's search function by entering relevant keywords to describe the product. Alternatively, browse the available categories to identify potential classifications.
- Interpret search results: Carefully examine the descriptions provided in the search results to determine the HS code that most precisely aligns with the characteristics of the goods.
- Refine the search: Employ the portal's filtering options to narrow the results based on specific attributes, such as material composition or intended use.
The HS codes are structured hierarchically, comprising sections and chapters that categorize goods based on their characteristics. You can also use the table below as an initial reference point to identify the relevant section for a given product:
Section | Chapters | Section title |
I | 1 to 5 | Live animals; animal products |
II | 6 to 14 | Vegetable products |
III | 15 | Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes |
IV | 16 to 24 | Prepared foodstuffs; beverages, spirits and vinegar; tobacco and manufactured tobacco substitutes |
V | 25 to 27 | Mineral products |
VI | 28 to 38 | Products of the chemical or allied industries |
VII | 39 to 40 | Plastics and articles thereof; rubber and articles thereof |
VIII | 41 to 43 | Raw hides and skins, leather, furskins and articles thereof; saddlery and harness; travel goods, handbags and similar containers; articles of animal gut (other than silkworm gut) |
IX | 44 to 46 | Wood and articles of wood; wood charcoal; cork and articles of cork; manufactures of straw, of esparto or of other plaiting materials; basket-ware and wickerwork |
X | 47 to 49 | Pulp of wood or of other fibrous cellulosic material; recovered (waste and scrap) paper or paperboard; paper and paperboard and articles thereof |
XI | 50 to 63 | Textiles and textile articles |
XII | 64 to 67 | Footwear, headgear, umbrellas, sun umbrellas, walking-sticks, seat-sticks, whips, riding-crops and parts thereof; prepared feathers and articles made therewith; artificial flowers; articles of human hair |
XIII | 68 to 70 | Articles of stone, plaster, cement, asbestos, mica or similar materials; ceramic products; glass and glassware |
XIV | 71 | Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal and articles thereof; imitation jewellery; coins |
XV | 72 to 83 | Base metals and articles of base metal |
XVI | 84 to 85 | Machinery and mechanical appliances; electrical equipment; parts thereof, sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles |
XVII | 86 to 89 | Vehicles, aircraft, vessels and associated transport equipment |
XVIII | 90 to 92 | Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; clocks and watches; musical instruments; parts and accessories thereof |
XIX | 93 | Arms and ammunition; parts and accessories thereof |
XX | 94 to 96 | Miscellaneous manufactured articles |
XXI | 97 to 98 | Works of art, collectors' pieces and antiques |
So, let's say you're a manufacturer in Myanmar exporting cotton sweaters. To find the correct HS code, you would typically navigate the Myanmar Trade Portal and follow these steps based on the HS structure:
- Start by looking at Section XI, which covers “textiles and textile articles.”
- Then, go to Chapter 61, which is for "articles of apparel and clothing accessories, knitted or crocheted.”
- Within Chapter 61, you would find heading 6110 for "jerseys, pullovers, cardigans, waistcoats and similar articles, knitted or crocheted."
- Finally, locate the subheading to specify "cotton" and other relevant details to arrive at a more specific HS code, such as 61101120 for cotton sweaters.
Tips for accurate classification
To ensure that you use the precise HS code when shipping overseas, consider the following best practices:
- Detailed product descriptions: Provide thorough and precise descriptions of your goods while including all relevant characteristics, such as composition, function, and intended use.
- Understanding the General Rules of Interpretation (GRIs): Familiarize yourself with the General Rules of Interpretation (GRIs) of the Harmonized System. These rules provide a systematic framework for classifying goods, especially when ambiguity exists.
- Consulting official resources: Always refer to the official Myanmar Trade Portal and relevant government publications for the most accurate and up-to-date information on HS code classifications.
- Avoiding Assumptions: Refrain from assuming the HS code based on perceived similarities to other products. Conduct thorough research and carefully analyze the product's specific attributes to ensure correct classification.
- Utilizing Explanatory Notes: Consult the Explanatory Notes published by the World Customs Organization (WCO)2. These notes offer detailed guidance and clarification on the scope of various HS code headings and subheadings.
- Seeking expert assistance: For complex or uncertain classifications, consider seeking advice from customs brokers or logistics experts like DHL Express. Their expertise can help you navigate intricate classification scenarios and ensure compliance.
Navigate international shipping with confidence
If you’re operating a business in Myanmar that engages in international trade and shipping, you need to understand the importance of HS codes. When you use the codes correctly, you can enjoy a host of benefits, including smooth customs clearance and timely delivery of your goods.
And if you want to optimize how you ship your products overseas, partner with a reliable logistics company like DHL Express. With our extensive expertise in handling HS codes, we can assist you in ensuring that all the details and information are accurate and compliant with international trade regulations.
Ready to simplify your international shipping process? Open a DHL Express business account today and experience seamless shipping solutions.
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