Heat sinks are responsible for exiting the excessive heat from the system. The demand for electronic components has rapidly increased the importance of heatsinks—many countries export and import them to and from other countries.
In-coming and outgoing heat sinks require some codecs for international trading. Manufacturers build heat sinks from different materials; therefore, their HS codes differ. This article talks about HS codes and why a heat sink manufacturing company needs them.
What Does an HS Code Signify?
The Harmonized System code or Harmonized Tariff Schedule code is an international trading method that classifies imported and exported goods. The code signifies how much tax is allocated to a particular heat sink.
These codes don’t make much sense to ordinary users, but they help Customs authorities track and keep a database record of each exported or imported heat sink. Moreover, they help distinguish the products coming in and going out of the nation’s borders.
There are six to ten digits in every hs code for heatsink; however, the numbers and their representation can differ from country to country. The following example generally explains the encoded description in an HS code.
The first two digits indicate the usage class of the heat sink. The following two numbers indicate the category headline of the heat sinks, and the last ones show commodities according to the type.
Suppose a heat sink is specified under chapter 85 and heading 85.01. then the HS code would look something like “8501.00”. The “85” indicates that the class is Electrical Machinery and Equipment and the “01” indicates the heading of Electric Motors and Generators.
The World Customs Organization specifies the codes for headings and categories. So, if needed, you can check the Customs Info Database using a search tool.
Why Are HS Code Important for Heatsink Exporting Companies?
As hinted earlier, they are an international identity mark to track the products moving in and out of a country. Heat sink exporters must deal with it every time there is an export shipment. Therefore, some summarized guidelines about HS codes are available below.
- HS codes help classify foreign goods. Therefore, it is necessary to mark your heat sinks with a code so the other processes can be carried out unhindered.
- HS codes are required by the export database system much significantly when the amount increases from 2,500 dollars or the item needs a license.
- Shipping companies also require HS codes to complete the necessary documentation before shipping. It is also an indication that the load is authentic.
- They also demonstrate the tariff on the products and determine if the items fall in the free trade category or not.
What Happens If There Are No HS Codes on Heat Sinks?
Although HS codes help track and distinguish the exported and imported products in and out of a nation. But another significant specification is hidden in these codes—the Customs duty charges. These codes represent the amount the Customs Authorities acquire on each heat sink.
So, overlooking the importance of HS codes will damage your reputation as an exporter. Moreover, their absence on exported heat sinks can lead to inquiries.
The Bottom Line
HS codes are an international trading standard. These codes are present on all exported and imported goods, and heat sinks are no exception. However, the meaning of HS codes differs according to the kind of shipment, i.e., imported or exported.
These are significant as they indicate the authenticity of the heat sinks and the importing or exporting source. Moreover, they also reveal the tariff Custom Authorities gain on each product. Therefore, carelessness with these codes can cause some serious inquiries.