Daily Archives: July 2, 2012
When dealing with the imports and exports in a country, there is a long 8 or 10 digit number that forms a sole identity for a product or a group of products. This code is known as the Commodity Code. This is done so that the customs can be paid properly. It is very necessary to exist because of the following reasons:-
- Information about the product(s) can be retrieved very easily. Finding duty rates becomes easy and any kind of restrictions on import and export can be looked upon. Measures of preferences, duty rates, quotas, suspensions, excise, VAT etc all play a role while calculating how much is to be charged for the goods.
- It helps in establishing an accurate and a transparent system of paying customs’ duty. Any kind of scam like escaping the levying of custom duty can be easily caught.
- It helps in keeping a track of the consumables and the assets, allowing better management and analysis of purchasing done by the state.
- It helps in making the annual report on import and export done by the nation and how did the trade help in raising the economy.