What Is Harmonized Tariff Code ?
Tariffs play an important part for the government as it is method of generation of revenue. For an international trade affair, Harmonized Tariff Code, or HTC, plays a very crucial role in bringing a balance in the rates of tariffs of various goods that are being shipped across the countries.
One would realize that in the absence of Harmonized Tariff Code a lot of confusion will be created leading to malpractices and smuggling. All those countries which belong to the World Trade Organization are subjected to Harmonized Tariff Code categorization and are liable to follow the codes as stated in the rules.
When a product is received at the border through a shipment the customs officials are put on duty for inspection of the goods that are being received. These officials have the task of inspecting each item and they have to levy tax as per the HTC categorization. Referring to the HS code is a very tedious task, but the tariffs are easier to collect as the goods are not allowed to move an inch unless the entire inspection and charging of tariffs are being finished. People who try to evade tariffs are termed as smugglers.
The HTS categorization further has different types of tariffs for instance an ad valorem tariff imposed on a particular item based on its value in the international market would never remain same. As the international market slips down the tariff will also come down similarly as the market goes up the prices would go up due to increase in the tariff rates.
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