Uniform application of harmonized system of goods classification

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Background. Currently, foreign trade is developing rapidly. In foreign economic activity, it is important to take into account that the Harmonized System (HS) of all countries should be similar. This will help and facilitate trade with foreign countries. When using harmonized system, goods can be correctly classified in the process of foreign economic activities, which can help exporters and importers avoid many problems with customs clearance of cargo. Customs authorities maintain foreign economic statistics, set tariffs of duties, the amount of excise duty, the availability of import quotas, preferential treatment.

Aim of the research is to identify problem areas in the commodity nomenclature of foreign economic activity and find ways to solve them.

Objectives of the research are to:

Specify the purpose Harmonized System of goods classification

Study common mistakes foreign trade participants

Determine consequences of misclassification due to incorrect translation

Find ways of solution of problems associated with incorrect HS translation.

Generation of the correct HS code is one of the conditions for the goods to pass customs clearance quickly and effectively without delays. If the codes turn out to be incorrect and the product is assigned to another category, problems in customs clearance may arise.

For instance, if payments in this category is lowered, the imported company underpays customs duties. When this information is revealed, Customs authorities will change the HS code and require additional payment for the revenue. A case of an administrative offense will be initiated, and a company will pay a fine.

Thus, classification goods should be duly presented in order to comply with all the rules and regulations of the state. Nowadays there were and still are a great deal of inaccuracies and translation errors in the HS code.

Results. I have carried out the analyses of the customs documentation, namely: contracts and declarations. All in all 43 documents were examined. According to the analyses mistakes were classified into three groups.

1. Inaccuracies associated with violation of the rules for the use of commas in HS code;
2. Inaccuracies related to the permutation of words;
3. Errors related to the fact that the translators apparently did not understand the original description of the article in the Nomenclature.

Conclusions. The classification of goods is very important, as it makes the work of Customs authorities more efficient and speeds up the process of foreign trade, but the classification has certain drawbacks, which have to be avoided.

In order to facilitate the trade conditions of customs processing of goods, the following issues are to be considered:

1) The professionalism of the employers involved in foreign economic activity;

2) The accuracy and correctness of the translation of the HS from English into Russian;

3) Involvement of commodity experts, technologists and specialists in the classification of goods as editors.

These can increase the effectiveness of customs control, reduce the negative judicial practice of customs authorities and, in general, will have a beneficial effect on foreign economic activity.

Correct translation and understanding of HS code might simplify the application of the commodity nomenclature in the process of foreign trade and entail more trade operation with other countries.

It can definitely produce a positive effect on the economy of the state.

About the authors

Samara State Technical University

Author for correspondence.
Email: dianadene013@gmail.com

student, group 11, thermal power faculty

Russian Federation, Samara

Samara State Technical University

Email: menshenina.mail@mail.ru

Scientific Director, PhD (Pedagogical Sciences), Department of foreign languages

Russian Federation, Samara

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