Navigating the world of product classification codes is crucial for anyone involved in exporting, including Kenyan businesses aiming to expand their reach. These codes are indispensable for customs authorities to compile trade statistics and for importing countries to determine applicable duties and taxes.
For many Kenyan exporters, diving into product classification can seem daunting. Common questions include:
"How do I determine the correct HS code?"
"Is it as simple as searching online?"
"Where should I begin?"
Let's unravel these concerns and shed light on product classification for Kenyan exporters.
Understanding Product Classification
The realm of product classification can be perplexing, with classification numbers varying in length. Kenyan exporters often encounter Harmonised System (HS) numbers, pivotal in international trade.
The Harmonised System (HS)
Administered by the World Customs Organization (WCO), the Harmonised System is a six-digit standard known as a subheading, designed for classifying globally traded goods. HS codes are universally recognized, and countries like Kenya extend these codes with additional digits to further differentiate products.
The WCO regularly reviews HS codes to accommodate new products and revise existing categories, with the latest update effective from January 1, 2022.
HS Codes in Kenya
Kenya bases its tariff classification on the HS system. The number of digits in Kenya's system can vary, so it's wise for exporters to consult the Kenya Revenue Authority (KRA), a trusted customs broker, or DHL for the latest code structures used for exports.
It's essential to report the correct commodity number in your export documentation. This includes providing a detailed description of the merchandise to verify the HS code, alongside other necessary statistical data.
Customs authorities rely on HS numbers to collect export statistics and levy duties and taxes on imported goods. While these classifications typically don't determine export controls, some products may require additional regulatory compliance.
Navigating Export Compliance
Kenya's export control system may differ from other nations, and exporters should be aware that certain items might necessitate special permits or licenses. It's advisable to consult relevant Kenyan authorities or trade experts for the latest information on controlled goods.
Tips for Classifying Your Products
For Kenyan exporters, here are some valuable strategies for effective product classification:
Understand Your Product
Before classifying your product, ensure you have a complete description, including its function, composition, and characteristics. This should include documentation detailing its:
Composition (metals, plastics, wood, etc.)
Specifications (size, thickness, etc.)
Performance specifications (capacity, flow rates, voltage, etc.)
Product use and essential character
Familiarize Yourself with HS Code Structure
The HS classification system comprises 21 sections divided into 97 chapters. Chapters 1 through 97 align with the international numbering system, with chapter 77 remaining blank. Before determining the correct commodity number, review the General Rules for the Interpretation of the Harmonised System. Each chapter and section includes notes that you should understand.
Leverage Official Resources
For the most precise and current product classification information in Kenya, exporters should refer to official resources from the KRA or other relevant governmental bodies. These resources may include official tariff lookup tools or published tariff documents.
When classifying products, it's crucial to identify the specific item type, material, and other characteristics for accurate classification.
Ensure Smooth Customs Clearance
Accurate classification is key to smooth customs clearance and compliance with international trade regulations. If in doubt, seek guidance from a customs broker or contact the KRA.
Elevate Your Exports with DHL
Ready to elevate your export game? Open a DHL business account today and enjoy seamless international shipping. With our expertise in global logistics and customs procedures, we'll help you navigate product classification and ensure your goods reach their destination efficiently. Don't let complexities hold you back—partner with DHL and watch your business thrive.
