What is Harmonized Commodity Description and Coding System in SAP SD-FT - Foreign Trade?

SAP Term: Harmonized Commodity Description and Coding System

• Component: SD-FT

• Component Name: Foreign Trade

• Description: An international standardized system that provides commodity codes and import duty rates for all classes of merchandise.

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• Key Concepts: 
  The Harmonized Commodity Description and Coding System (HS) is an international classification system for goods used by customs authorities around the world to classify traded products. It is maintained by the World Customs Organization (WCO) and is used by over 200 countries and territories. The HS is organized into 21 sections, 96 chapters, and 1,244 four-digit subheadings. 
  
  How to use it: 
  In SAP SD-FT Foreign Trade, the Harmonized Commodity Description and Coding System (HS) is used to classify goods for customs purposes. The HS code is used to determine the applicable duties and taxes for imported goods. It is also used to determine the applicable export control regulations for exported goods. 
  
  Tips & Tricks: 
  When entering HS codes in SAP SD-FT Foreign Trade, it is important to ensure that the correct code is entered. Incorrect codes can lead to incorrect duties and taxes being applied or incorrect export control regulations being applied. It is also important to ensure that the correct version of the HS code is used as different countries may have different versions of the HS code. 
  
  Related Information: 
  For more information on the Harmonized Commodity Description and Coding System (HS), please visit the World Customs Organization website at https://www.wcoomd.org/en/topics/nomenclature/overview/hs-nomenclature-2017/.