Description of goods

HSN Code No. which is the basic for all Customs clearance activities depend only on the description of goods mentioned in the sale document. For correct assessment by Indian Customs the description of goods must include Brand Name, [if any], Generic Name, Country of Origin [not the place from which shipped but the country of origin accepted for international trade depending on the percentage of manufacturing and other related activities conducted in a country].  Effective rates of duty, exemptions, import prohibitions etc. are dependent on various elements.

Description of goods should contain physical details, comments on history like new, reconditioned, organic etc., who made them or where they were made.  Wherever the value of the goods also depends on the elements such as quality, technical characteristics and specifications of goods, those details should form part of the description of the goods.

The description in the Purchase Order should be sufficient to identify and manufacture or supply the exact goods required by the buyer. [It should be mentioned therein specifically, if any additional details are provided separately]. Insufficient information in description of PO or consequential supply documents would alert the tax officer to investigate for any attempt to contravene law.

e.g. Clothing, carpets, and other fabric products to be marked with accurate fibre content. Footwear to be labelled with a clear indication of the materials used in each part.

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