Introduction to the HSN Code in the UAE
Introduction
Harmonized System Nomenclature (HSN) Codes are critical for classifying goods in international trade and are established by the World Customs Organization (WCO). The United Arab Emirates (UAE), a significant hub for global commerce, implements these codes to manage trade efficiently, determine tariffs, and comply with international standards.
In the UAE, HSN Codes are central to customs operations, enabling the country to participate effectively in the global market and streamline import-export processes.
The UAe's Approach to Harmonized System (HS) Codes
The UAE uses HSN Codes to align with the Gulf Cooperation Council's (GCC) unified customs procedures, promoting regional trade and facilitating international transactions. These codes are vital for the UAe's diverse economy, impacting tariff rates, trade policies, and economic strategies.
The UAE and the World Customs Organization
The UAe's commitment to the WCO's HSN Codes underscores its role in the international trading system and its efforts to maintain streamlined customs practices.
Transition to Detailed Harmonized Codes in the UAE
The UAE has adopted the HSN system with additional digits to enable more detailed classification of goods, crucial for accurate tariff application and trade policy.
Structure of the UAe's HS Code Classification
The HSN Code structure in the UAE is designed to ensure precision in goods classification, supporting customs, taxation, and trade policy development.
General Structure of the HSN Code in the UAE
The HSN Code in the UAE follows a systematic hierarchical structure, including:
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71 08 1200
- Chapter (First 2 Digits)
Represents the broad category of goods.
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71 08 1200
- Heading (Next 2 Digits)
Specifies the product group within the chapter.
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7108 12 00
- Sub-heading (Next 2 Digits)
Provides detailed information within the heading.
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710812 00
- UAE Specific Extension (Additional Digits)
Refines the classification further for UAE-specific trade regulations.
Example of HSN Code Application in the UAE
For example, considering the UAe's trade in gold, the HSN Code for non-monetary gold would be 7108.12.00.
Breakdown of the Code:
Chapter (71): Precious metals and stones; imitation jewelry; coins.
Heading (08): Gold (including gold plated with platinum) unwrought or in semi-manufactured forms, or in powder form.
Sub-heading (12): Non-monetary.
UAE Specific Extension (00): The additional digits could denote specific details for classification as required by UAE customs, such as the purity grade or the form of the gold.
Significance of HSN Codes in the UAe's International Trade
HSN Codes are essential to the UAE’s customs and trade framework, influencing duties, taxes, and regulatory policies. They facilitate the UAE’s extensive import and export activities and are critical for businesses to ensure compliance with global trade norms.
Market Research & Competitive Intelligence
Businesses in the UAE use HSN Code-classified trade data for market research and competitive analysis. This data is crucial for understanding market demands, identifying trade patterns, and making informed strategic business decisions.
UAE HSN Code & Relevant Tax Rate List by Volza
Volza provides an extensive listing of the UAE’s HSN codes, complete with trade data analytics. This tool is invaluable for companies engaged in UAE trade, offering insights into tariff rates, trade trends, and aiding in strategic planning and compliance.
HS Codes for (Chapter 1 - 5 ) - Section I-Live Animals; Animal Products
HS Codes for (Chapter 6-14 ) - Section II-Vegetable Products
HS Codes for (Chapter 15 ) - Section III-Animal or Vegetable Fats and Oils and their cleavage Products; Prepared Edible fats; animal or Vegetable waxes
HS Codes for (Chapter 16 -24 ) - Section IV-Prepared Foodstuffs; Beverages, Spirits and Vinegar; Tobacco and Manufactured Tabacco substitutes
HS Codes for (Chapter 25 -27 ) - Section V-Mineral Products
HS Codes for (Chapter 28 -38 ) - Section VI-Products of the Chemicals or Allied Industries
HS Codes for (Chapter 39 - 40 ) - Section VII-Plastics and Articles thereof; Rubber and Articles Thereof
HS Codes for (Chapter 41 - 43 ) - Section VIII-Raw Hides and Skins, Leather, Furskins and Articles thereof; saddlery and Harness; travel goods, Handbags and similar Containers; Articles of animal gut (other than silk-worm Gut)
HS Codes for (Chapter 44 -46 ) - Section IX-Wood and Articles of Wood; Wood Charcoal; cork and articles or cork; Manufactures of Straw, of Esparto or of other Plaiting Materials; Basketware and Wickerwork
HS Codes for (Chapter 47 -49 ) - Section X-Pulp of wood or of other Fibrous Cellulosic Material; Recovered (Waste and Scrap) Paper or Paperboard; Paper and Paperboard and articles thereof
HS Codes for (Chapter 50 -63 ) - Section XI-Textile and Textile Articles
HS Codes for (Chapter 64 -67 ) - Section XII-Footwear, Headgear, Umbrellas, Sun Umbrellas, Walking-sticks, seat-sticks, whips, Riding-crops and Parts thereof; Prepared Feathers and articles Made therewith; artificial Flowers; Articles of Human Hair
HS Codes for (Chapter 68 -70 ) - Section XIII-Articles of Stone, Plaster, Cement, Asbestos, Mica or similar Materials; Ceramic Products; Glass and Glassware
HS Codes for (Chapter 71 ) - Section XIV-Natural or Cultured Pearls, Precious or Semi-Precious Stones, Precious Metals, Metals clad with Precious Metal, and articles thereof; Imitation Jewellery; Coin
HS Codes for (Chapter 72 -83 ) - Section XV-Base Metals and Articles of Base Metal
HS Codes for (Chapter 84 - 85 ) - Section XVI-Machinery and Mechanical Appliances; Electrical Equipment; Parts thereof; sound Recorders and Reproducers, Television Image and Sound Recorders and reproducers, Television Image and sound Recorders and Reproducers, and Parts and Accessories of such article
HS Codes for (Chapter 86 - 89 ) - Section XVII-Vehicles, Aircraft, Vessels and Associated Transport Equipment
HS Codes for (Chapter 90 - 92 ) - Section XVIII-Optical, Photographic, Cinematographic, measuring, checking, precision, medical or surgical Instruments and apparatus; clocks and watches; musical instruments; part and accessories thereof
HS Codes for (Chapter 93 ) - Section XIX-Arms and Ammunition; Parts and Accessories thereof
HS Codes for (Chapter 94 - 96 ) - Section XX-Miscellaneous Manufactured Articles
HS Codes for (Chapter 97 - 98 ) - Section XXI-Works of art, Collectors' Pieces and Antiques
