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What is SAC code 2202?

Published in HS Code Beverages 3 mins read

While the question refers to "SAC code 2202," the code 2202 actually corresponds to a Harmonized System (HS) Code, which is used globally for classifying goods. HS Code 2202 broadly covers Mineral Aerated Waters and Non-Alcoholic Beverages.

Understanding HS Code 2202

The Harmonized System (HS) is an internationally standardized system of names and numbers for classifying traded products. Developed and maintained by the World Customs Organization (WCO), it is used by customs authorities worldwide to identify products for duty, taxes, and statistics.

HS Code 2202 specifically categorizes:

  • Mineral Waters: This includes both natural mineral waters and artificial mineral waters.
  • Aerated Waters: These are waters that have been carbonated.
  • Non-Alcoholic Beverages: This broad category covers a wide range of drinks that do not contain alcohol. It's important to note that this heading typically excludes fruit or vegetable juices falling under HS Heading 2009.

What's Included Under HS Code 2202?

This HS code encompasses various popular drinks, making it a significant classification for the beverage industry. Below are examples of products commonly found under this classification:

Category Examples
Mineral Aerated Waters Still mineral water, sparkling mineral water, artificially carbonated waters.
Non-Alcoholic Beverages Soft drinks (soda, cola, lemonade), flavored waters, energy drinks, sports drinks, sweetened or unsweetened ready-to-drink teas (not brewed), tonic water, ginger ale, and other similar non-alcoholic preparations, excluding fruit and vegetable juices of heading 2009, milk and dairy products, coffee, and tea.

HS Codes vs. SAC Codes: A Clarification

It is common for there to be confusion between HS Codes and SAC (Service Accounting Codes), especially in countries like India where both systems are relevant for taxation.

  • HS Codes (Harmonized System Codes): These are international codes used for the classification of goods traded across borders. They are crucial for customs duties, international trade statistics, and product-specific regulations.
  • SAC Codes (Service Accounting Codes): These are codes specifically used in India for the classification of services under the Goods and Services Tax (GST) regime. SAC codes begin with "99" followed by several other digits (e.g., 998311 for management consulting services).

Therefore, when referring to "2202," it almost invariably points to an HS Code for goods, specifically beverages, rather than a service.

Importance in Trade and Commerce

Accurate classification using HS codes like 2202 is vital for several reasons:

  • Customs Duties: Determines the correct import and export duties and taxes applicable to the products.
  • Trade Statistics: Enables governments and organizations to collect and analyze data on international trade flows.
  • Regulatory Compliance: Helps ensure compliance with health, safety, and labeling regulations that vary by country for different types of beverages.
  • Supply Chain Management: Facilitates smoother logistics and customs clearance for businesses involved in the global beverage trade.

In summary, HS Code 2202 serves as a foundational classification for a wide array of non-alcoholic drinks and mineral waters, impacting their journey from production to consumer across international borders.