What Is a Merchant Category Code?

Commodity code, also known as product code, or product code and article number, is the process of assigning a certain type of symbol or code to a certain type of product based on the classification of the product. Commodity coding or commodity coding.

Commodity code

get on

Commodity codes are used in the import and export trade to categorize and manage the commodities and represent the digital names of the import and export commodity names. They play an important role in standardizing commodity management, simplifying actual operations, and facilitating statistical analysis. They are widely used in import and export declarations. , Export tax rebates, business processing and financial accounting of export enterprises.

Commodity codes are the specific manifestation of commodity classification, and are the basis of customs duties and export tax rebates. According to the classification principles and contents of the Catalogue of the Harmonized System of Commodity Names and Codes, the customs officially implemented customs import and export tariffs and statistics from January 1, 1992 Product catalogue. With the evolution of practical applications for many years, the classification of commodities has become increasingly mature. The rules of its codes mainly follow: the first two digits represent the headings, the three or four digits are the tax headings, and the last four digits are the subheadings. The two-level subheadings of the tariff increase on the basis of the code of the coordination system. The ninth and tenth digits increase the two-digit commodity codes (from 2001) to narrow down the commodities.

The Customs determines the standard commodity classification according to the internationally accepted "Commodity Name and Coding Harmonization System" and applies it to customs declaration of import and export; the State Administration of Taxation conducts tax rate appraisal on standard commodities provided by the Customs according to the requirements of tax policies and regulations. Among them, if the original code can not meet the actual needs of taxation, the original code can be expanded to accurately identify the tax rate.

The commodity code is the commodity code of the final tax rate identified by the State Administration of Taxation. The identified tax refund rate is an important basis for calculating the export tax refund. Export enterprises can perform import and export declarations, internal business processing and financial accounting, and handle export tax rebates. Based on this, local tax authorities can review corporate tax refund declarations and handle tax refund review and approval operations. This book can also be used by other departments. Benchmark data for import, export and tax statistical analysis.