<P> For the purpose of assessment of customs duty, products are given an identification code that has come to be known as the Harmonized System code . This code was developed by the World Customs Organization based in Brussels . A Harmonized System code may be from four to ten digits . For example, 17.03 is the HS code for molasses from the extraction or refining of sugar . However, within 17.03, the number 17.03. 90 stands for "Molasses (Excluding Cane Molasses)". </P> <P> Introduction of Harmonized System code in 1990s has largely replaced the Standard International Trade Classification (SITC), though SITC remains in use for statistical purposes . In drawing up the national tariff, the revenue departments often specifies the rate of customs duty with reference to the HS code of the product . In some countries and customs unions, 6 - digit HS codes are locally extended to 8 digits or 10 digits for further tariff discrimination: for example the European Union uses its 8 - digit CN (Combined Nomenclature) and 10 - digit TARIC codes . </P> <P> A Customs authority in each country is responsible for collecting taxes on the import into or export of goods out of the country . Normally the Customs authority, operating under national law, is authorized to examine cargo in order to ascertain actual description, specification volume or quantity, so that the assessable value and the rate of duty may be correctly determined and applied . </P> <P> Evasion of customs duties takes place mainly in two ways . In one, the trader under - declares the value so that the assessable value is lower than actual . In a similar vein, a trader can evade customs duty by understatement of quantity or volume of the product of trade . A trader may also evade duty by misrepresenting traded goods, categorizing goods as items which attract lower customs duties . the Evasion of customs duty may take place with or without the collaboration of customs officials . Evasion of customs duty does not necessarily constitute smuggling . </P>

In which way are tariffs different from​ quotas