Page 179 - COMBINED QUESTIONS AND ANSWERS - EDITION 2019 - PART II_Neat

HARMONIZED SYSTEM (HS)
Q-695: State true or false:
(i) Any country can modify by adding two digits or four digits as per their requirements
without changing the first six digist of HS code
(ii) Harmonized System code description and coding System was created by the World
Trade Organisation (WTO)

(iii) Additional digits on Harmonized System code are same in all countries.
A-695: i - True ii - False (World Customs Organisation (WCO) iii - False (typically different in every
country)
Q-696: Harmonized System codes are an international method of classifying products and
classification is used by the Customs officials on
(i) To determine the duties on products
(ii) To determine the taxes on products
(iii) To determine the regulations on products
(iv) All of the above

A-696: iv - All of the above
Q-697: To know the HS code of the product exported
(a) Must know the description of the Harmonized System Code
(b) Must know the category of the Harmonized System Code
Which one of the above statement is correct?
(i) a only
(ii) b only
(iii) both a & b
(iv) None of the above

A-697: iii - both a & b
Q-698: How to find HS code for an item
A-698: In the Tariff Schedule of the Customs Tariff Act, 1975, products are arranged with HS
code specified against each of them. The pattern of arrangement of goods in the Tariff is in
increasing degree of manufacture of commodities/products in the sequence of natural
products, raw materials; semi finished goods and fully finished
goods/article/machinery,etc. When the description of an item or group of items under a
Heading is preceded by “- ’’(single dash) then the item shall be taken to be a sub-
classification of that item or group of items covered under the same heading. In case of “- -”
(double dash) then the item shall be taken to be a sub-classification of the immediate
preceding of that item or group of items which has “ - ’’(single dash). When the goods
imported are not specifically described or identified in the tariff under any Heading, the
commodity/product has to be determined or identified as per the guidelines given in the
Section Notes given under each Section and General Rules for the Interpretation of the
Schedule given in the Customs Tariff itself.

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