Importance of HSN and SAC codes in procurement
When it comes to procurement, optimization and accuracy, as well as compliance are of utmost importance. A major factor that contributes to this is the additional use of HSN (Harmonized System of Nomenclature) and SAC (Services Accounting Code) codes. These standardized codes are important when it comes to sorting the goods and services for easy procurement, ensuring compliance with rules as well as promoting collaborations between countries. Having said this, you may still want to understand more on why HSN and SAC codes are crucial in procurement? What are HSN and SAC Codes? HSN Code: Harmonized System of Nomenclature (HSN) is an internationally accepted system adopted and developed by the World Customs Organization (WCO). 1. Helps for Systematic classification of goods HSN codes are 6-8 digit uniform codes that classify goods under various chapters and headings. The first 2 digits of the code represent a chapter, followed by another set of 2-digit figure for each heading. It goes on...