HS Code Research Articles

India's growing trade in high-value crops with South Asian countries: Prospects of crop diversification

Despite having no comparative advantage in fruits and vegetables export in the world market, India exhibits a comparative advantage over most South-Asian countries, with the exceptions of Afghanistan and Bhutan. Trade balance index (TBI) showed that vegetables like tomatoes (HS Code 0702), cucumbers and gherkins (HS Code 0707), leguminous vegetables (HS Code 0708) and fruits like bananas (HS Code 0803), citrus (HS Code 0805) and fruits and nuts, provisionally preserved (HS Code 0812), emerged as India's major export vegetables and fruits for the study period. As trade liberalisation and market access for agricultural products expands between countries, there will be a greater need for the country to focus on diversifying its agriculture, particularly by emphasizing the cultivation of fruits and vegetables. Keywords: Comparative advantage, export competitiveness, fruits, vegetables. JEL Codes: F13, F18, Q02, Q17.

Design of Cashew Marketing Strategy Through Evaluation of Export Potential to Enter the Global Market (Case Study of Mrs. Tini's MSMEs in Ciputat)

This study aims to identify market expansion opportunities and address the administrative barriers MSMEs Kacang Mete Bu Tini face in exporting fresh or dried shelled cashew nuts with HS Code 080132 to Malaysia and Thailand. MSMEs Kacang Mete Bu Tini encounter significant administrative obstacles due to the lack of essential export documents such as quality certificates, certificates of origin, etc. These obstacles slow the market expansion and reduce the product's competitiveness in international markets. The research conducted through Revealed Comparative Advantage (RCA) analysis shows that Indonesian cashew nuts have significant comparative advantages in the Malaysian and Thai markets, with RCA values reaching 3.318911 in Malaysia and 2.556656 in Thailand. An RCA value greater than one indicates a comparative advantage in both markets. Regarding competitive advantage, Malaysia holds a "Rising Star" position with an annual export market share growth of 0.281030 percent and a cashew market growth of 0.180204 percent per year. In contrast, Thailand is in a "Retreat" position with an annual export market share growth of -0.509915 percent and a cashew market growth of -0.009638 percent per year, indicating a decline in demand and less satisfactory export performance. The conclusion is that Malaysia is a more suitable export destination for Cashew Nut Bu Tini MSMEs, given the higher RCA value and more favorable market position. MSMEs Kacang Cashew Bu Tini needs to promptly complete the necessary administrative documents to enhance product competitiveness and expand export markets.

Comparison of K-Means and K-Medoids Clustering Algorithms for Export and Import Grouping of Goods in Indonesia

International relations affect the economic growth of each country, which can affect the economic growth of each country. As a result, global economic growth is necessary, which means that the global economy has a greater capacity to produce goods and services. Exports and imports are very important to drive economic growth. but if exports and imports are not balanced, it will have a bad impact if the value of imports is greater than exports, export prices abroad will definitely fall. An analysis comparing export and import categories is needed to determine which goods are most imported and exported in Indonesia in 2021-2023. This study uses a quantitative methodology and machine learning methods, namely k-means and k-medoids algorithms. These two methods will be compared to determine which is the most effective for export and import data of goods in Indonesia in 2021-2023. The results of the study were obtained by K-Means more effectively in handling data on the grouping of exports and imports of goods in Indonesia in 2021-2023. The dataset shows the results of the evaluation of K-Means using DBI of 0.59, while the results of the evaluation using K-Medoids show a result of 1.7868. Because the evaluation value of K-Means has low computing performance compared to K-Medoids. The largest amount of the value and weight of exports and imports of goods in Indonesia is in C1 where in the HS code [27], namely Mineral fuels with a total export value of goods in 2021 to 2023 of 134,999,470,522 US$ and a total import value of 113,714,568,740 US$. Meanwhile, the total export weight of goods from 2021 to 2023 in mineral fuel goods is 1,505,006,250,327 Kg or around 1,658,985,413 tons and the total import weight is 186,446,782,134 Kg or around 205,522,397 tons.

Are China’s Renewable Energy Products Competitive in the Context of RCEP?

In recent years, in order to address climate change and energy depletion, countries around the world have been constantly promoting energy transformation and structural upgrading. The effectiveness of RCEP has broadened the international east Asian new energy market. The development of renewable energy trade in the context of RCEP has attracted significant economic, environmental, and technical attention. Based on the background of RCEP in this study, the constant market share (CMS) model and the weighted dominant comparative advantage (IRCA) index are used to assess the export competitiveness of renewable energy products from 2006 to 2021. The data in this paper were obtained from the UN comtrade database according to the categorical statistics of HS codes. The results show that: (1) the overall competitiveness of Chinese renewable energy products shows an upward trend; (2) the comparative advantages of Chinese renewable energy products are strong, with some differences among different industries; (3) the growth effect is the main reason for the fluctuation of Chinese renewable energy product exports; and (4) the signing of RCEP has injected new vitality into Chinese renewable energy trade. Finally, based on the research conclusions, the paper puts forward corresponding policy proposal.

MEASURING THE COMPARATIVE AND COMPETITION OF INDONESIAN WOOD CHARCOAL EXPORTS IN THE SAUDI ARABIAN MARKET

Objective: This study examines the comparative and competitive export of wood charcoal in four potential countries, namely Indonesia, Malaysia, China, and Vietnam, in the Saudi Arabian Market with HS Code 4402. This study used annual data for nine years from 2014 - 2022, divided into three periods. Method: This study used the Herfindahl-Hirschman Index (HHI) and concentration Ratio (CR), Revealed Symmetric Comparative Advantage (RSCA), Export Product Dynamic (EPD), X-Model, and Trade Specialization Index (ISP) models to measure the wood charcoal industry in the Saudi Arabian Market. Result: The findings show that wood charcoal market in Saudi Arabia exhibits a strict oligopoly structure, with Indonesia and China dominating the market share. Indonesia emerged as the top supplier of wood charcoal to Saudi Arabia during for nine years. Malaysia showed the highest competitiveness among potential countries in certain periods. Overall, Indonesia, China, Vietnam, and Malaysia demonstrated strong competitive positions, with dynamic export growth, positioning them as "Rising Stars" in the market. These countries specialized as wood charcoal exporters to Saudi Arabia, reaching a mature stage in their market presence during the analyzed period from 2014 to 2022. Conclusion: This study concludes that Indonesia became the highest supplier with a market share of 53.51% and had a strong comparative advantage. Malaysia has the highest optimistic market development, followed by Indonesia, Vietnam, and China. Indonesia's wood charcoal competitiveness position remains in the Rising Star position. The Trade Specialization Index of four potential countries at this stage of maturation.

Explainable Product Classification for Customs

The task of assigning internationally accepted commodity codes (aka HS codes) to traded goods is a critical function of customs offices. Like court decisions made by judges, this task follows the doctrine of precedent and can be nontrivial even for experienced officers. Together with the Korea Customs Service (KCS), we propose a first-ever explainable decision supporting model that suggests the most likely subheadings (i.e., the first six digits) of the HS code. The model also provides reasoning for its suggestion in the form of a document that is interpretable by customs officers. We evaluated the model using 5,000 cases that recently received a classification request. The results showed that the top-3 suggestions made by our model had an accuracy of 93.9% when classifying 925 challenging subheadings. A user study with 32 customs experts further confirmed that our algorithmic suggestions accompanied by explainable reasonings, can substantially reduce the time and effort taken by customs officers for classification reviews.

Comparative advantage of Indonesian mushroom commodities in the green technology era

Mushroom is a commodity in the agricultural sector that has the potential to be developed in global trade competition. As part of the ASEAN regional cooperation institution, Indonesia can contribute to achieving excellence in mushroom commodities. Developing mushroom cultivation to support green technology innovation also helps achieve food security for future generations. This research aims to analyze and overview the comparative advantages of ASEAN with China related to mushroom commodities in 2018-2022. This research uses descriptive analysis methods and RCA-Revealed Comparative Advantage analysis in calculating the RCA of this mushroom, using HS codes 0709, 0711, and 0712. HS code 0709 represents mushroom commodities based on the sub “Fresh or chilled mushrooms of the genus “Agaricus” and Fresh or chilled edible mushrooms and truffles. The results show that China has a comparative advantage over ASEAN regarding mushroom commodities in 2018-2022. China outperforms in 3 mushroom commodity sectors in HS Codes 071159, 071151, and 071239. In comparison, ASEAN regional institutions have a low and weak level of comparative advantage in each mushroom commodity code. These results indicate that countries that are members of ASEAN pay less attention to mushroom commodities. Therefore, strategic efforts are needed to develop mushroom commodities supporting green technology innovation by prioritizing humidity control to achieve national food security goals.

Freight Forwarder Role: PT. Mitsui-Soko Indonesia In The Process Of Importing Electric Motorcycle Sparepart Products (Hs Code: 8501.52) To PT. Pratama Amerta Solutions

International trade has become an increasingly important factor in the global economy today. In this context, the role played by Freight Forwarders in facilitating the movement of goods between countries has become very significant. This research focuses on analyzing the role of PT. Mitsui-Soko Indonesia is a Freight Forwarder company importing electric motor spare part products classified under HS Code 8501.52, imported by PT. Pratama Amerta Solusi. This research aims to identify the contributions made by the Freight Forwarder in improving the smoothness of the import process, provide an overview of the import process, outline the documentation required for importing, and analyze the risks that could occur and their impact on the supply chain and the operational sustainability in the case study of PT. Pratama Amerta Solusi's import through the Freight Forwarder: PT. Mitsui - Soko Indonesia. The research methodology is qualitative and quantitative and employs a case study approach, focusing on the import process of PT. Pratama Amerta Solusi through PT. Mitsui Soko - Indonesia as the Freight Forwarder. Primary data were obtained through direct interviews with representatives from PT. Mitsui-Soko Indonesia, who acted as the import forwarder, while secondary data were gathered from books, national and international journals, previous research, and other credible and relevant sources. The quantitative research was conducted to obtain the magnitude of the impact and the importance of risks in PT's export and import logistics processes. Mitsui - Soko Indonesia.

Daya Saing Ekspor Ikan Tuna Indonesia di Pasar Global

Revealed Comparative Advantage (RCA) analysis is a key tool in assessing a country's competitiveness compared to others. This study uses RCA to measure Indonesia's comparative advantage in the global tuna market. The calculated RCA values show Indonesia's superiority in tuna production and exports, especially with a focus on fresh or chilled yellowfin tuna (Thunnus albacares) with HS Code 030232. The RCA values for Indonesia, Panama, the Philippines and the Netherlands are 200, 150, 50, 350, and 400, respectively. These results confirm that Indonesia has a comparative advantage in the international tuna market, which is supported by abundant natural resources, a large fishing workforce, and a history of successful tuna exports. Despite this, challenges remain, including overfishing, the impacts of climate change, and illegal, unreported, and unregulated (IUU) fishing. The decline in tuna production in Indonesia demands better fisheries management and international cooperation to address unsustainable practices. The Indonesian government's commitment to conservation is visible in the Tuna, Skipjack and Tuna Fisheries Management Plan. Overall, Indonesia's vibrant tuna export industry, supported by extensive marine resources, a large international market and robust infrastructure, shows significant potential. The government's commitment, combined with ongoing efforts to increase competitiveness through increased productivity, product quality, diversification and global promotion, positions Indonesia to strengthen its role as a major player in the global tuna export market.

한국 자동차산업의 특허 출원과 가격 차별화가 산업내무역에 미치는 영향

This study examines the impact of patent applications and price discrimination on intra-industry trade in the automotive industry across 45 countries, encompassing Korea and OECD members. To address this, 237 items, classified by the customs office under the HS code at the 6-digit level, were categorized into vehicles, electrical and electronic, and other categories. Panel fixed-effects and random-effects models were employed. The findings suggest that patent applications in the vehicles sector exert a negligible influence on intra-industry trade. Conversely, the electrical and electronic sector, gaining prominence due to the proliferation of trends in autonomous driving and electrification, demonstrates a positive effect on intra-industry trade. This is attributed to the growing global demand for Korean products and the expanded use of imported goods at a level equivalent to domestic products to satisfy the diverse demands of domestic customers. To sustain and enhance competitiveness in the electrical and electronic sector, a concerted effort is essential, encompassing not only corporate-level strategic decisions but also governmental policy endeavors, including legal and regulatory reforms and the establishment of integrated governance systems.

ANALYSIS OF IDENTIFICATION FEATURES OF MODERN DECORATIVE TEXTILE MATERIALS FOR CUSTOMS PURPOSES

the article analyses the identification features of modern decorative textile materials used for the manufacture of curtains for declaration for customs purposes by participants of foreign economic activity. Since a large number of such materials are purchased by import in Russia, the distinctive features of the ma- terials “blackout”, “dimout”, “chenille” are shown to describe the goods and assign the correct HS code of the EAEU.

Daya Saing Kopi Indonesia di Pasar Internasional dalam 3 Dekade Terakhir

Coffee is one of the most important commodities that have an important role in economic growth, especially in supporting the increase of non-oil exports in Indonesia and as a foreign exchange earner. The purpose of this article is to analyze competitiveness of Indonesian coffee in international market in the last 3 decades or during period 1989–2019. Revealed Comparative Advantage (RCA), Export Product Dynamic (EPD), X-Model Potential Export Product and Diamond Porter’s is used to analysis competitiveness. The results of the analysis of competitiveness using the RCA method show that not all HS codes for Indonesian coffee and competing countries have a comparative advantage, Indonesian coffee has strong competitiveness for HS code 090111 but has no strong competitive power for other HS codes. The results of the EPD method show that for all HS codes Indonesian coffee and competing countries have a rising star position or have positive appeal and increased market share. The results of the X-Model Potential Export Product method show that Indonesia and competing countries have optimistic coffee market developments for HS code 090111 and have potential market developments for HS codes 090112, 090121, 090122, and 090190. From the results of Porter Diamond's analysis, the results obtained that the State of Indonesia has advantages in terms of condition factors, namely natural resources and has weaknesses in science and technology, human resources and capital resources.

Indonesian international trade analysis in agricultural sector case study of natural rubber commodities exports in the ASEAN free market

Natural Rubber is one of Indonesia's leading export commodities and is also one of the largest suppliers in the global market. Rubber and processed rubber export commodities are categorized under the Harmonized System Code 40001 (HS Code 4001) more frequently referred to as HS-4001 so that it is easier to analyze related to commodity trade transactions where in the last few years since 2011 the share of Indonesian Natural Rubber exports always in the top 10 largest exporters in the world. Besides China as the largest exporter, it turns out that Thailand is Indonesia's strongest competitor as a Natural Rubber exporter in ASEAN, therefore with the implementation of the ASEAN Economic Community (AEC) policy in 2016 it is believed that there has been a change in the trade system, namely the export of various commodities including Natural Rubber in the Market. ASEAN. This study uses a descriptive method using various reference sources and secondary data where a lot of data comes from online media, namely various previous studies, online news, and data collected through official websites of government agencies or organizations both national and international. The results of this study indicate that international trade in Indonesian Natural Rubber commodities experienced a significant increase after the implementation of the AEC in 2016 compared to several previous years. It is hoped that the Indonesian government can further encourage natural rubber producers and entrepreneurs to continue to optimize the export of this commodity.

Analisis Ekspor Kelapa dan Produk Olahan Kelapa Indonesia di Pasar Uni Eropa: Pendekatan Indeks Spesialisasi Perdagangan

Coconut is a plantation commodity that Indonesia exports to European Union countries. Most of Indonesia's coconut exports are in the form of processed coconut products. This study aims to determine the competitive position of coconut and its processed products from Indonesia in the European Market. This research was conducted from July 29 to August 18, 2020. The object of this research is the export of Indonesian crude coconut oil (HS code 151311), fractions of coconut oil and semi-finished coconut oil (HS code 151319), coconut (HS code 080111) and young coconut HS 080119). The analysis used in this research is Trade Specialization Index (TSI) method to measure Indonesia's competitive position in European Union countries as an export destination for coconut commodities and their processed products. The results showed that coconut commodities and processed coconut products generally show strong competitiveness and are at the maturity stage.

Export Potential and Competitiveness of Processed Food Products from India

The liberalization of trade and India's accession to the World Trade Organization (WTO) have brought about significant changes in India's agricultural trade and food processing industry. This study aims to evaluate the export competitiveness of processed food products from India by analyzing their comparative advantage and export potential over a specified time period.
 The study utilizes secondary data from sources such as the Agricultural and Processed Food Products Export Development Authority (APEDA), Food and Agricultural Organization (FAO), and International Trade Centre (ITC) for the analysis. The selection of processed food products is based on the major processed food products exported by food processing industries in Gujarat. Analytical tools employed are compound annual growth rate (CAGR), revealed comparative advantage (RCA), and nominal protection coefficient (NPC). These tools help assess growth rates, comparative advantage, and competitiveness of the selected commodities with the data on export potential Provided by ITC.
 The study highlights the export potential and unrealized potential of processed foods which is more than 7.9 billion dollars and 4.5 billion dollars respectively. Among the selected commodities the food preparations with HS code 210690 are observed to have the highest potential. The analysis identifies the largest unrealized potential was in countries such as the United States, Saudi Arabia, China, and UAE for many of the selected processed food products. It was also observed in the export performance of selected processed foods for the last 10 years, with notable growth rates observed in miscellaneous preparations and bread, pastry, and other baked foods. This study concludes by highlighting the Potential of selected food products and also shows the presence of competitive advantage of selected foods in the USA, UAE, UK, Australia, and Saudi Arabia. It highlights the opportunities for manufacturers to expand their exports, capitalize on untapped market potential, and enhance their business growth.

Palm Oil Downstream Strategy: Enhancing Indonesia's Bargaining Position in International Palm Oil Trade

Although Indonesia currently dominates 60% of global palm oil production, Malaysia holds a competitive advantage in certain downstream industries. Indonesia must focus on developing its palm oil industries to process crude palm oil (CPO) into higher-value products, serving both as exports and substitutes for imported goods. This research aimed to highlight the importance of Indonesia's development of downstream palm oil industries. This research employed quantitative methods such as Pearson correlation and Granger causality, as well as qualitative methods. 
 The result showed that the fluctuation of CPO prices in the international market is closely tied to the volume of CPO exports conducted by Indonesia. Achieving higher domestic CPO production by improving the productivity of independent palm oil farmers is crucial. By enhancing their productivity from 2-3 tons per hectare to 5-6 tons per hectare, CPO supply can increase by 8 million tons annually, equivalent to approximately 16% of the total production. Reducing export should be accompanied by increased domestic CPO utilization through downstream programs. 
 By capturing half of Malaysia's current market share of HS code 1516 (animal or vegetable fats and oil, hydrogenated, inter-esterified, re-esterified, or elaidinized, whether or not refined but not further prepared), Indonesia has the potential to earn approximately 1 billion USD per year in foreign exchange. The development of biodiesel, transitioning from B30 to B40, holds the potential to save approximately IDR 200 trillion in foreign exchange. This strategic focus on downstream industries would strengthen Indonesia's position in the international palm oil market.

Business Intelligence Framework for Mapping Analysis of Crafts Creative Industry Products Exports in West Java, Indonesia

This paper aims to develop a framework model of a business intelligence system for mapping exports of the creative craft industry in West Java. The main problem is the lagging of the craft industry exports due to the lack of responsiveness in capturing export opportunities. In addition, the absence of a business intelligence system in the craft industry to analyze export mapping in the global market is why this study is important. The research methods used in this literature are data collection and consolidation, identification of information needs, and business intelligence framework design. The data studied in this study are primary data related to export sales of handicrafts in West Java in the form of exporter data, export commodity data (HS code), export trade transactions, export destination country data, and the total value and volume of exports. The proposed model is a BI framework for mapping the creative craft industry exports and the stages of the BI implementation process. Based on the results and discussion, the proposed BI framework design can provide a framework for implementing a business intelligence system to analyze the export mapping of handicraft products in West Java, Indonesia.
 Keywords: Business Intelligence System (BIS), decision support system, mapping analysis of craft product exports, craft business indicators

Vitamin preparations for poultry farming

The article indicates that further development of poultry farming is due to the optimization of the feed base associated with the use of effective veterinary feed additives having a positive effect on the health and average daily weight gain of young poultry. When choosing imported market products, a correctly selected HS code is of great importance, which allows reducing the delivery time of vitamin preparations and vitamin-mineral complexes, which favorably affect the growing time and quality indicators of the quality of products obtained.

Chemical of concern for raising awareness to Indonesian textile sustainability

It is well known that textiles and textile products may contain hazardous compounds. Formally, all imported textiles and textile products must be registered through the Indonesian Custom. Ideally, the Indonesian Custom has the capability to detect chemicals of concern in textiles or textile products entering Indonesian territory. However, this is not the case, particularly for chemicals listed in the Stockholm Convention. The difficulties arise from the lack of identification regarding substances listed in the Stockholm Convention that might be present in textiles, textile products, and finished products. The Indonesian Government has initiated programs to assess the presence of persistent organic pollutants (POPs) in Indonesian territory. Results of the assessment were elaborated in the National Implementation Plan Document on POPs, which was updated recently. Not all substances listed in the Stockholm Convention can be described in depth. Some POPs such as short-chain chlorinated paraffins (SCCPs) and polychlorinated naphthalenes have not been included in Indonesian regulation, particularly in Indonesian Customs Tariff Book, making it extremely difficult to assess them. Nevertheless, a preliminary assessment of polybrominated diphenyl ethers and SCCPs has been carried out. Using the Tier 1 approach, it was revealed that 2,194 tonnes of SCCPs was imported from India to Indonesia, which was listed under HS code 38249090 that covered CP52 (containing 50–54% chlorinated paraffins). Furthermore, another prominent issue for chemicals of concern (CoC) in textiles was the use of lead-containing dyes, nonylphenols, and nonylphenol ethoxylates. The latter two compounds are known to be used in detergents and surfactants during textile manufacturing processes. At present, nonylphenols and nonylphenol ethoxylates are not listed in Indonesian laws for regulated chemicals in textiles and textile products, as well as in the wastewater quality standard for the textile industry. Therefore, to avoid circular economy obstacles of used textiles and textile products and support sustainable Indonesian textiles, a systematic inventory of CoC in textiles is very important.

다중 FTA를 활용한 한⋅중 비즈니스 모델 연구: 소비재 수출을 중심으로

Since the establishment of diplomatic relations in 1992, China has developed into Korea's largest exporter. With the Korea-China FTA in 2015 and the RCEP in 2020, conditions have been created for Korean exporters to China to selectively utilize multiple FTA structures. In this regard, this paper studied guidelines and business models for Korean consumer goods exporters to utilize multiple FTAs. First, we designed a guideline by selectively utilizing multiple FTAs based on the criteria for determining the country of origin. In addition, ① a model by changing and combining the composition of raw materials among food products exported to China, ② a model to which the HS code was changed and applied by adjusting the composition of raw materials among foods exported to China, ③ a model that was changed to a classification favorable to the Korea-China FTA through a change in the HS code classification, ④ a model that reduced customs clearance costs by utilizing conditions for exemption from submission of certificates were suggested.