TCS(Trade Cost Simulation) User Guide
You can simply select, or enter 6 categories of information in above screen, and press Enter button. Details are as below:
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- You need to select departure and arrival countries to use this system. Otherwise, the simulation may not be properly operated.
- Departure country(export) and arrival country(import) should be different because it's all about international trade.
- You can basically select major 4 countries we're dealing with(Korea, China, Japan, Taiwan), and about countries other than these, you can simply click OTHER, and then select continent and country in option box.
- Selecting country is a very important step affecting almost all aspects of simulation results, such as customs duty, logistics, regulations, process, etc.
- Under TCS program, one of departure and arrival country should be the one of Korea, China, Japan and Taiwan. Otherwise, the simulation will not be operated. In a near future, we'll deal with more countries.
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- This step is to compute international freight and transport period. Simply select one of 2 options(sea or air transport).
- If you want to enter international freight directly, you can check Freight Direct Input box. Then, it shows another section at the bottom to allow you to enter freight and insurance directly.
- International freight and insurance may cumulatively impact on computing customs duty or other taxes, according to Intercoms(International Commercial Terms).
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- Select departure and arrival regions to provide freight information, and so on.
- Select main port of each country, and the region not containing freight information automatically remains inactivated.
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Summary for Item Search
- 3 options(Keyword search, HS code search, Directory search) - show same results
- Press Enter after entering key words, or click Search.
- Press Enter after entering HS code, or click Search.
- Click Search without entering any information.
- You may click until pop-up window of item search disappears.
- In all search options, you need to select items on item search pop-up window to access simulation service.
Outline
- It's the most important part on the main TCS page.
- Departure or arrival country should be the one of our four major countries(Korea, Japan, China, Taiwan). Otherwise(if you select OTHER), the search bar remains inactivated, not allowing you to enter any information.
- In case both departure and arrival countries are pertaining to our four major countries(Korea, Japan, China, Taiwan), if you select item of a country, under TCS program, item of counterpart country may be chosen automatically linked to it. In this case, the order for selecting items of departure and arrival country may not affect simulation results.
Language and Item Selection
- When it comes to trade, item selection means HS code selection. According to WCO Convention, each member country has the same 6-digit HS code system, at least, even though following digits may be different. TCS system allows you to easily select HS code of other countries by linking 6-digit HS codes between countries.
- HS code and item description of other country aren't translated, but the system is designed to allow you to simply find matching code in your language.
- 1. Searching HS code by language is provided as below:
- When Korean, Chinese(traditional, simplified) and Japanese users try to find HS code of other countries, your own HS codes in your language act as an navigator.
Ex) Procedures that a Japanese user sends items from China to Korea : 1. item selection in Japan's HS code system -> 2. Matching China's HS code system -> 3. Matching Korea's HS code system
Ex) Procedures that a Japanese user imports items from China to Japan, or exports from Japan to China : 1. item selection in Japan's HS code system -> 2. Matching China's HS code system
- 2. If you are English users, you don't have to use such navigator, but simply find HS code in English, and then match that of counterpart country.
Item Selection Method
- You can have 3 options of item search, 1.Key words search, 2. HS code search, and 3. Directory search which will show the same results.
- You can continue to click item until pop-up window disappears.
- 1. Key words or HS code search
- You can enter key words or HS codes, and then press Enter button. Or, click Search button to see item search screen as pop-up.
- In key words or HS code search, you can search items by entering item in the box at the top of pop-up window for selecting items as well as in default prompt tag.
- In many cases, description of HS code is a little different from usual name of item.
- TCS system contains about up to 3 million key words in usual language per each language. But, key words are categorized as displayed key words and hidden key words, which are all linked to HS codes.
- You can enter key words in your own language or English(if you fail to find an item in your language, you'd better search it in English.).
- In entering key words, if you have a blank space between words, you may have same result as you have AND search form(ex : women coat= women and coat).
- If you enter numbers only, it's recognized as HS code. So, the system will display matching items with the preceding digit code according to entering numbers in the order.
- If you choose key words or HS code search, you can search 5 areas at the same time, such as hidden usual language, HS description, classification case, English Further Classification and HS Notes.
- Directory Search
- If you click (item) Search button in the blank box, HS code directory screen is shown.
- Search by section(Main category) and search by chapter(Sub category) are interconnected, which mostly, short digit codes(heading) are all about raw materials, and longer digit codes(subheading) cover finished products.
- In this part, you can find the items you want.
Example 1 : Key words search
Example 2 : HS Code search
Example 3 : Directory Search
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As above, if the screen displays blank boxes after you chose item, you need to enter quantity, etc. in order to get exact results(it's displayed for specific duties which are decided according to quantity).
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- First, choose a currency(USD, CNY, EUR, JPY, KRW, TWD), and then enter item price, and choose Incoterms finally.
- Incoterms affect calculating tax amounts such as customs duty, and distribution of logistics, and so on.
- Incoterms refer to formal terms and conditions, defining the scope of cost and risk burdens between export and import. Under this program, FOB, CFR, and CIF, which are most frequently used ones of 11 terms, are mainly dealt with.
- FOB : Exporter pays international freight and insurance.
- CFR : Exporter pays international freight, and importer pays insurance.
- CIF : Importer pays international freight and insurance.
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- A container is based on dry container, you can enter quantity of container type chosen between 20feet and 40feet.
- * FCL (Full Container Load)
- For small package, to refine your search, you can enter both weight and volume.
- * LCL (Less than Container Load)
- Air transport doesn't deal with containers.
- Click Calculator button to calculate the volume of item and the number of containers.
