Letter of Credit Forum

Many thanks to all of you..

Best regards,

Starone

Hello there
The short answer is - don't do it.
As Pan has mentioned, the HS code is only partially matched in WTO countries i.e. while the first four (or with certain commodities 6) digits may be harmonised, local provisions may require a further series of numbers (to create a 10 digit string) which are unique to that environment.
Tariff headings are NOT drawn from invoices, but rather local customs law will require the importer of record to declare the tariff heading through another mechanism. What may be happening is (also as Pan mentions) the importer is trying to avoid a higher rate of duty by deliberately mis-declaring the tariff heading. By having you endorse this incorrect tariff on the invoice they are setting up their defence in the event that they are bust by the authorities “It wasn’t me who did it, honest – it was my supplier, look what he wrote on the invoice!” etc. (this is an OLD trick)
If there is a trade agreement between your two countries, you may find you pick up a liability for this false declaration, through that deal and via your local Customs. Even if there is no trade deal, you may find it harder for other buyers of yours (in that country) to obtain import permission (should it be required) to buy from you, should you be black-listed in this process.
Finally: why are you asking? Well, most likely because you suspect it is illegal or unstable and you want to be sure you do not do anything wrong. That is good, that is commercially a ‘healthy’ way to think.

BUT: “to thy own self be true”

If I told you it was illegal – but ONLY in the buyer’s country and, if they get bust, you would be in the clear: would you do it? If you say ‘yes’, then think again, take some leave, consider your on-going career – because that moral-gymnastics is the type of attitude that gets business a bad name.
Be true to your first instinct – you ‘know’ this is wrong: as I say – ‘don’t do it’ (think Nike, in reverse).
I hope  this helps you

Cheers
phill

Hi Friend,

HS Code is composed by 10 digits, normally 4 are used, frequently 8 digits too, those must correspond in Countries belonging to the Intl. Customs Union, where the last two digits have some differences.

Probably the indication of different HS Codes is due to the possibility to obtain a reduction on import duties.

I will contact my Forwarder for a tip.

Other comments appreciated

Ciao