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Classifying
Your Products for Export
by JoAnn Queen
Trade Information Center
As originally appearing in
ExportAmerica, January, 2003.
On a daily basis,
millions of products from the
United States and elsewhere
enter markets around the
world. A crucial aspect of
this constant stream of goods
is the proper identification
and documentation of those
products for customs purposes.
For every item, there is a
customs classification number
that ensures that customs
authorities recognize the
product and that the
appropriate customs fees are
assessed. These numbers are
also used to obtain tariff
rates, complete export
documentation, and conduct
market research.
What is an HS or
HTS number?
The World Customs
Organization, formerly the
Customs Cooperation Council,
developed the Harmonized
Commodity Description and
Coding System, also called the
Harmonized System (HS). The HS
is recognized by 179 countries
and customs or economic
unions, representing 98
percent of world trade.
The HS assigns six-digit codes
that represent general
categories of goods. Countries
that use HS numbers are
allowed to define commodities
at a more detailed level, but
they must “harmonize” the
first six-digits to the HS
framework. Each country can
assign up to four additional
numbers, making the entire
number up to 10 digits. Using
these codes ensures that
customs officials are
referring to the same item
when classifying the product
and applying the tariff rate.
The U.S. tariff schedule, or
Harmonized Tariff Schedule (HTS),
is based on the international
HS nomenclature. The 10-digit
HTS numbers are used on U.S.
import documentation and to
obtain U.S. tariff rates.
What is a Schedule
B number?
In the United States,
numbers used to classify
exported products are called
“Schedule B” numbers.
Similar to the HTS, the
Schedule B system is also
based on the international HS,
but the U.S. Census Bureau
administers it. The Schedule B
number, not the HTS number,
must be provided on the
Shipper’s Export Declaration
(SED). Using these numbers,
U.S. export statistics are
calculated from SEDs by the
Census Bureau. Schedule B
numbers cannot be used for
classifying products for
importation into the United
States.
Is there a
difference between HTS and
Schedule B numbers?
Yes, in the United States,
HTS numbers are used for
import documentation, while
Schedule B numbers are used
for export documentation. Both
Schedule B and HTS numbers
have the same first six
digits, however at the
10-digit level the codes can
be different. For example,
Schedule B and HTS codes show
differences for the number
4801.00.00 (newsprint, in
rolls or sheets).
Schedule
B:
|
|
| 48 |
Paper and paperboard
and articles (includes
paper pulp articles) |
4801.00.00.02 |
Newsprint, in rolls
or sheets. |
| HTS: |
|
| 48 |
Paper and
paperboard; articles
of paper pulp, of
paper or of paperboard |
| 4801 |
Newsprint, in rolls
or sheets. |
| 4801.00.00.20 |
Standard newsprint
paper |
| 4801.00.00.40 |
Other |
The HTS number tends to be
more detailed.
There are about 9,000 export
codes (Schedule B) and
approximately 12,000 import
numbers (HTS). It is usually
okay to use the more detailed
HTS number on export
documents, but that is not
always the case. The Census
Bureau’s Foreign Trade
Division Web site (www.census.gov/foreign-trade/www)
contains a list of HTS numbers
that cannot be used to report
exports.
How often are
classification numbers updated
and by whom?
The Foreign Trade Division
of the Census Bureau revises
the Schedule B manual, either
by publication of a new manual
or issuance of a Public
Bulletin to update the
existing manual. The entire
manual is usually re-published
every five to 10 years. The
U.S. International Trade
Commission (www.usitc.gov)
annually updates the
Harmonized Tariff Schedule
Annotated.
How are Schedule B
and HTS numbers organized?
Schedule B and HTS numbers
are organized by chapters,
beginning with 01 (live
animals and animal products)
and ending at 97 (works of
art, collectors’ pieces, and
antiques). The United States
and certain other countries
also use chapters 98 and 99 to
cover special categories of
products, such as goods
temporarily imported for
repair or alteration (United
States), donations of clothing
and books for charitable
purposes (Canada), and
household and other goods
imported by someone resuming
residence in the country (New
Zealand). Beneath each
chapter, there is a heading
and then a subheading that
further describes the product.
HTS numbers for various
products break down in the
order outlined below:
Chapter = first two digits
Heading = first four digits
Subheading = first six digits
Tariff item = up to 10 digits
total
For example, the following is
a breakdown of a “men’s
cotton raincoat” and its HS
number 6201.12.2010:
Chapter: 62 – Apparel
articles and accessories, not
knit, etc.
Heading: 6201 – Men’s or
boy’s overcoats, raincoats,
carcoats, capes, cloaks,
anoraks (including ski
jackets), windbreakers and
similar articles (including
padded, sleeveless jackets):
Overcoats, carcoats, capes,
cloaks and similar articles.
Subheading: 6201.12 – Of
cotton
Tariff item: 6201.12.2010 –
Men’s raincoats
How do I classify
my product?
The first step is to
understand the product well,
particularly its material and
how it will be used.
Sometimes, the details may
make a difference in its
category. For example, hammers
are classified in several
different chapters, and it is
important to know if the
hammer is electric or
pneumatic and whether it is
made of metal, wood or rubber.
Next, visit the Census
Bureau's Schedule B Search
Engine at www.census.gov/foreign-trade/schedules/b.
You may either browse through
the chapters or search for a
Schedule B number. To begin,
click on "Search"
and enter a key word in the
search box; then click search.
The results will be listed two
different ways: alphabetical
index and Schedule B book
descriptions. Choose the
description that best fits the
product, and use the
corresponding classification
number. Please visit Identifying HS Schedule B Numbers
for a step by step guide on
use of this website.
Can I speak to
someone if I have problems
classifying?
If you are having
difficulty classifying using
the Schedule B Search Engine,
classification specialists at
the Census Bureau’s Foreign
Trade Division Commodity
Analysis Branch are available
to assist you in identifying
the appropriate number to
classify your product. To
classify durable goods
(metals, machinery, computer,
electronic, and other
miscellaneous goods), phone
(301) 763-3259. To classify
non-durable goods (food,
animal, wood, paper, mineral,
chemical, and textile goods),
phone (301) 763-3484. If you
do not know if the product is
durable or non-durable, phone
(301) 763-3047.
Can I request that
the importing customs
authority determine the
appropriate number prior to
exporting?
Yes, you can. This is
referred to as an advanced
customs ruling. The request
must be in writing to the
importing country’s customs
authority and provide
sufficient information on the
product. Most customs
authorities will make the
determination and provide a
binding customs ruling.
However, the customs
authority’s ruling must be
accepted, even if there is a
category or number that better
describes the product. The
number assigned by customs may
carry a higher tariff than a
number you believe more aptly
describes the product.
How do I obtain
tariff rates if I have the
appropriate HS number for my
product?
You can find several
alternative methods of
determining foreign tariff
rates on the Trade Information
Center’s Web site at www.export.gov/tic.
Click on “Tariff and Tax
Information,” then go to
“Tariff Resources.” Tariff
rates for many countries are
shown on the site, and an HS
number identification and
tariff look-up tool is also
available. Also, a freight
forwarder or customs broker
can help you find tariff
rates. If you need further
assistance, contact the Trade
Information Center at (800)
USA-TRAD(E) to speak with one
of the trade specialists. U.S.
import rates can be obtained
by calling U.S. Customs
offices nationwide, a listing
of which is found on www.customs.gov
or the International Trade
Commission site at http://dataweb.usitc.gov/scripts/tariff.asp.
Where can I find
further information?
To find further information
on Schedule B numbers, visit
the Census Bureau at www.census.gov/foreign-trade/www.
To find further information on
HS numbers, visit the U.S.
International Trade Commission
at www.usitc.gov.
For all other trade-related
issues, contact the Trade
Information Center at (800)
USA-TRAD(E).
The Trade Information
Center (TIC) is operated by
the International Trade
Administration of the U.S.
Department of Commerce for the
19 federal agencies comprising
the Trade Promotion
Coordinating Committee. These
agencies are responsible for
managing the U.S.
government’s export
promotion programs and
activities. You, too, can
"Ask the TIC" by
calling (800) USA-TRAD(E) toll
free, Monday through Friday,
8:30–5:30 EST. Or visit the
TIC's Web site at www.export.gov/tic.
Date
Updated: March 27, 2007
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