Question

Q. The Harmonized Commodity Description and Coding System generally referred to as "Harmonized System” is developed by which of the following organizations?

• A. United Nations Commission on International Trade Law
• B. World Trade Organization
• C. United Nations Conference on Trade and Development
• D. World Customs Organization

Answer 1

The correct option is D World Customs Organization

Explanation:

• The Harmonized Commodity Description and Coding System generally referred to as "Harmonized System" or simply "HS" is a multipurpose international product nomenclature developed by the World Customs Organization (WCO).
• The HS contributes to the harmonization of Customs and trade procedures, and the non-documentary trade data interchange in connection with such procedures, thus reducing the costs related to international trade.
• It comprises more than 5,000 commodity groups; each identified by a six-digit code, arranged in a legal and logical structure, and is supported by well-defined rules to achieve uniform classification.
• Indian Trade Classification (Harmonised System) ITC (HS) has been established in this regard which is a compilation of codes for all merchandise/goods for export/ import. Goods are classified based on their group or subgroup at 2/4/6/8 digits.
• ITC (HS) is aligned at 6 digit level with international Harmonized System goods nomenclature maintained by the World Customs Organization. However, India maintains a national Harmonized System of goods at 8 digit level.