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India Issues Advisory for Traders Misclassifying HS Codes on Customs Documents

India’s Directorate General of Foreign Trade recently issued notices advising traders to indicate the “prescribed harmonized system” codes of items instead of using the “others” category for bills of entry and shipping bills, KPMG said in a Feb. 7 post.…

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Some importers were not indicating the correct eight-digit HS code when filing a bill of entry, which led to errors in determining India’s import data, KPMG said. If the misclassification continues, India may introduce a licensing regime for items in the “others” category by “shifting items from a ‘free’ to ‘restricted’ category,” which will lead to higher customs duties.