The Harmonized System (HS) code stands as a fundamental element, ensuring that goods are classified uniformly across borders. Recently, the Inland Revenue Department of Nepal mandated the inclusion of HS codes on invoices, emphasizing their importance. This blog explores what HS codes are, why they are essential, and how businesses using Tigg can seamlessly incorporate them into their process.

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What is an HS Code?

HS codes, or Harmonized System codes, are standardized numerical methods of classifying traded products. Developed by the World Customs Organization (WCO), the HS code system is used by over 200 countries and economies as a basis for their customs tariffs and for the collection of international trade statistics. Each HS code consists of six digits, which can be further extended by individual countries for more detailed classification.

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Why are HS Codes Important?

• Uniform Classification: HS codes provide a standardized method to identify products, ensuring consistency in international trade.
• Customs Efficiency: Accurate HS codes help customs authorities quickly identify and process goods, reducing delays and improving trade efficiency.
• Taxation and Duty Calculation: Governments use HS codes to determine the appropriate taxes and duties for imported and exported goods, which is crucial for compliance and financial planning.
• Trade Statistics: HS codes facilitate the collection of international trade data, helping governments and businesses analyze trade patterns and make informed decisions.

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The Requirement in Nepal

Recognizing the importance of HS codes, the Inland Revenue Department of Nepal has made it mandatory for businesses to display these codes on their invoices. This move aims to improve tax compliance, and enhance the accuracy of trade statistics.

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Implementing HS Codes in Tigg

For businesses using Tigg, incorporating HS codes into invoices and other transactional documents is straightforward.

‍Here’s how you can enable and use this feature:

‍To enable the HS code feature in Tigg, first, navigate to the printing templates by going to Configuration > App > Printing Templates. Select the template you use (such as Invoice) and click the edit icon. In the item line configuration, enable the HS Code option and customize the label if needed. Save your changes to apply the new settings.

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‍For adding HS codes to products, include the HS code in the code field when creating a new product. To update existing products, edit the product and enter the HS code in the code field. After these steps, the HS Code column will appear in the print of invoices, quotations, and other transaction documents based on your configuration.

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By using Tigg’s HS code feature, you can ensure compliance with Nepal’s new compliance requirement while enhancing the clarity and professionalism of your transactional documents. Stay ahead in the competitive market by embracing this essential feature and making your business operations smoother and more compliant.

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For more details, check the video below:

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For comprehensive guidance, please refer to our help article . This resource offers step-by-step instructions on the implementation of HS Codes.