The Harmonized System of Nomenclature (HSN) plays a crucial role in the global trade ecosystem. It is a standardized numerical method developed by the World Customs Organization (WCO) for classifying products traded internationally. With over 200+ economies using the HSN system, businesses and governments can rely on this mechanism for simplifying trade documentation, complying with taxation systems, and improving international trade efficiency.
When it comes to specific commodities like aluminium and freight-related services, understanding their respective HSN codes becomes significant for accurate classification and transactions. This article provides detailed insights into the Aluminium HSN Code and Freight HSN Code 8-Digit classification. Whether you are a manufacturer, exporter, or involved in logistics services, this guide will help you decode these classifications seamlessly.
What Is an HSN Code?
Before diving into aluminium and freight-specific codes, let's revisit the concept of HSN. HSN, short for the Harmonized System of Nomenclature, provides a standard approach to classify goods and services at a global level. The HSN system is structured systematically into sections, chapters, and headings, all of which deal with specific product categories.
Structure of the HSN Code
- Sections: Broad categories such as textiles, machinery, or metals.
- Chapters: Clearly defined industries (e.g., metals are grouped between Chapters 72 to 83).
- Headings (4-Digits): Narrower classifications, based on product type.
- Subheadings (6-Digits): Finer classification, depending on product-specific details.
- National Codes (8-Digits): Country-specific extensions to meet domestic requirements.
Businesses rely on HSN codes for diverse tasks like:
- Calculating GST (Goods and Services Tax)
- Tracking imports/exports
- Invoicing and filing returns
- Ensuring compliance with government regulations
⚠️ Incorrect use of HSN often triggers penalties, delayed shipments, or taxation problems.
What Is the Aluminium HSN Code?
Aluminium, as one of the most widely used metal commodities, is classified under the HSN Chapter 76. This chapter pertains exclusively to items made of "Aluminium and Articles Thereof." Whether raw or in processed form, aluminium-based materials and related products all fall under this chapter.
Classification of Aluminium HSN Code
The 4-digit aluminium HSN Code falls under "7606" in Chapter 76. However, based on the type, form, or additional processing of the material, the classification grows more specific with subheadings (6 digits) or even the 8-digit codes.
Aluminium HSN Code Breakdown
| HSN Code | Description |
| 7601 | Unwrought aluminium (ingots, billets, raw aluminium) |
| 7602 | Aluminium waste and scrap (recycled aluminium, alloys) |
| 7603 | Powder or flakes of aluminium |
| 7604 | Aluminium bars, rods, and profiles |
| 7605 | Aluminium wires |
| 7606 | Aluminium plates/sheets (more than 0.2mm thick) |
| 7607 | Aluminium foil (whether backed or not, below 0.2mm) |
| 7608 | Aluminium tubes and pipes |
| 7609 | Fittings for aluminium pipes or tubes |
Beyond the 6-digit level, countries like India integrate 8-digit aluminium HSN codes to meet national taxation requirements under GST laws.
Examples include:
- 76061100: Aluminium sheets or plates, not alloyed.
- 76071110: Aluminium foil, rolled but not backed.
Applications of Aluminium HSN Code
Correct classification of aluminium components under the HSN Code is especially critical in domains such as:
- Manufacturing industries
- Construction
- Packaging (e.g., aluminium foils)
- Aeronautics and automotive sectors
- Electronics and electrical transmission
Businesses also use the correct aluminium HSN code for input tax credit claims during GST filings in countries like India.
What Is the Freight HSN Code 8 Digit?
Freight transportation services involve the transfer of goods from one location to another. Utilized heavily by sectors like trade, manufacturing, and retail, freight services are intrinsically tied to HSN categorization for compliance under GST laws, especially in countries like India.
Freight services fall under HSN Chapter 99, which deals with service-specific codes. This classification is often referred to as the SAC (Services Accounting Code) system for HSN coding.
Freight HSN Code Under GST
For domestic and international freight services, the Freight HSN Code 8 digit can be divided depending on the service type:
| SAC Code | Service Type |
| 996511 | Road transport freight services |
| 996512 | Rail transport freight services |
| 996513 | Air transport freight services |
| 996514 | Freight transport via waterways |
| 996521 | Courier services (both domestic and international) |
Freight HSN 8-Digit Specifics
- For road freight transportation, the 8-digit HSN code begins as "99651110," where the last two digits vary depending on the mode (e.g., truck, small carriage vehicles).
- For air cargo, the 8-digit code extends to "996513XX" to clarify distinctions between domestic air cargo and international parcel services.
This classification ensures the proper application of GST rates on freight services at either 12% GST or 18% GST, depending on the transaction type and value-added service.
Key Applications of Freight HSN Codes
- Export/Import Trading: Ensuring compliance with international shipping regulations.
- Logistics and Warehousing: Calculating GST on inter-state or intra-state services.
- E-Commerce: Determining GST implications on courier and shipping services.
- Customs and Border Control: Assisting in customs clearance at ports.
Why Are Aluminium HSN Code and Freight HSN Code Important?
Proper classification of aluminium products and freight services under the respective HSN codes ensures smoother operations across supply chains and regulatory compliance.
Importance of Aluminium HSN Code
- Trade Efficiency: Accurate HSN classification simplifies import/export compliance.
- Tax Filing Accuracy: Ensures the correct GST rate (% tax) is applied on aluminium goods.
- Reduction in Errors: Aluminium products often face anti-dumping duties and value-based taxes—accurate classification minimizes disputes.
- Claiming ITC (Input Tax Credit): Industries can claim ITC on taxes paid for raw material sourcing.
Importance of Freight HSN Code
- Tax Management: Correct identification of freight services under SAC prevents doubts over applied GST rates.
- Facilitating Logistics Partners: Enables precise invoicing and documentation.
- Easing Audits and Returns: Avoiding incorrect SAC classification minimizes risks during GST audits.
- Promoting Global Trade Integration: HSN/SAC codes are accepted internationally, simplifying cross-border logistics operations.
Conclusion
Both the Aluminium HSN Code and Freight HSN Code 8-Digit classifications hold valuable significance in today's trade and logistics environment. For aluminium, adherence to Chapter 76 and proper parsing through 6- and 8-digit extensions is key for determining GST applicability and complying with trade laws. Simultaneously, freight falls under Chapter 99 with its service-centric SAC classifications, ensuring compliance in transportation and shipping operations.
Businesses—especially manufacturing and logistics players—should invest in understanding HSN systems. Leveraging the correct aluminium HSN code or freight HSN code optimizes taxation outcomes, minimizes compliance risks, and ultimately contributes to a smoother trading process.
👉 For seamless operations, ensure to consult with GST professionals, customs authorities, or tax consultants when selecting appropriate HSN codes. The effort you take today will reduce operational inefficiencies tomorrow!