Shree Sai T/A Weavinghands Rugs Pvt Ltd, a leading manufacturer and exporter of high-quality home furnishing aesthetic items in India, is highly focused in providing accurate and timely information to our all importers whose interest lies with us.
Being a certified trademark company, we believe in creating an atmosphere for our clients around the world where they strongly feel connected and respected. While product standardisation has become a crucial part of our economy, we must abide and follow the guidelines as and when released/updated by the government.
Concerning a likewise important information, Shree Sai International would like to share something important with regard to changes by WCO in its 7th edition of Harmonized System Nomenclature codes to made with respect from 1st January 2022. It is undertaken to increase the harmony and standardised identification of goods across the globe.
1. Effective Date: 1st January 2022.
2. Number of amendments: 351 Amendments.
3. Areas of amendment: HSN Codes – few descriptions are divided into several codes, retaining the old ones. For some, only few digits are changed.
4. Impact : Impact on trade :-
a) Huge impact for certain chapters in terms of customs duties and taxes.
b) The Lot of Existing exemption notifications may require changes to be incorporated.
c) Expected Issues in GST Classification since Chapter Headings are from Customs Tariff.
Technical impact :-
a) Changes to be incorporated as and when the notifications are published in the customs clearance software communicating with Icegate.
b) Customs (including EDI and Customs Officers) may take time to assess the BoE with new codes, as it would require more understanding and attention to implement the changes.
c) Delays may lead to detention and demurrages.
5. Recommendations : For importers :
a) For Sea freight movements, If importers haven’t got the shipment dispatched & if possible push the dispatch by few days till successful incorporation of amendments in the systems.
b) Check with your Brokers the new changes in HS Codes and respective % of duty.
c) Empower the brokers with pre-alerts as much advance as possible to have time to discuss the changes & file accurate declarations with customs.
For Customs Brokers :
a) Ensure thorough study of the changes.
b) Ensure to be upgraded always with the amended notifications.
c) Ensure the software is upgraded with latest HSN Codes and Notifications.
For further inquiry on this subject, contact the customs clearance experts in your region.
Thank You
Shree Sai T/A Weavinghands Rugs Pvt Ltd