What is harmonized system in SAP SD-FT - Foreign Trade?

SAP Term: harmonized system

• Component: SD-FT

• Component Name: Foreign Trade

• Description: Since January 1988 the "Harmonized System of goods classification" HS from the "Advice for Collaboration between Customs" with its six figure code numbers has been the basis for the EU standard, eight figure encrypted "Combined Nomenclature" CN. This CN provides unique identification for every single goods item within the EU. The numbers are grouped together in sections that are in-turn grouped in chapters.

Smart SAP Assistant

• Key Concepts: 
  The Harmonized System (HS) is an international nomenclature developed by the World Customs Organization (WCO) for the classification of goods. It is used by customs authorities around the world to identify and classify goods for the purpose of taxation and other trade regulations. In SAP, the Harmonized System is used in the SD-FT Foreign Trade component to classify goods for export and import. 
  
  How to use it: 
  In SAP, the Harmonized System is used in the SD-FT Foreign Trade component to classify goods for export and import. The Harmonized System is used to assign a unique code to each product, which can then be used to determine the applicable taxes and duties. The Harmonized System also helps to ensure that goods are correctly classified when they are imported or exported. 
  
  Tips & Tricks: 
  When using the Harmonized System in SAP, it is important to ensure that all codes are up-to-date and accurate. This will help to ensure that goods are correctly classified and that applicable taxes and duties are correctly applied. 
  
  Related Information: 
  The World Customs Organization (WCO) provides detailed information about the Harmonized System on its website, including a searchable database of HS codes. Additionally, SAP provides detailed documentation about how to use the Harmonized System in its SD-FT Foreign Trade component.