Harmonized System Codes, US Harmonized Tariff Schedule Codes, and Schedule B Codes

One of the first steps in preparing commodities & products for an import or export shipment is correctly identifying the 10-digit classifying code that is associated with the goods. These 10-digit codes are found in either the US Harmonized Tariff Schedule (HTS), or the Schedule B; Both classification systems are controlled by the US Government, but are derived & in accordance with World Customs Organization’s (WCO) Harmonized System (HS). The below is intended to be a quick reference guide on navigating through these classification systems and aiding in selecting the correct 10-digit classification code.

DTGruelle will utilize our expertise on navigating these classification systems in order to assist a business with code section; However, it is important to note that the final determination must be from the company that is the importer/exporter of record, and that all guidance provided by DTGruelle is non-binding. Please pay close attention to this order of business, for there can be hefty legal fees associated with misclassified goods. Additionally, the HTS is the basis of tariff rate for import shipments. If it is found that an imported good has been misclassified, there can an order to pay the difference between the misclassification’s duty rate and the duty rate for the proper classification (as deemed by US Customs); This will be applicable to all import shipments that have been brought into the country and have not yet been liquidated. With this in mind, there are methods on ensuring that a classification code selection is correct, which is revealed under “Seeking the US Government’s Guidance”.

The Harmonized System (HS) is an international classification system administered by the World Customs Organization. The 2-, 4-, and 6-digit HS headings and subheadings are the basis for the 10-digit statistical classification systems used in the United States (HTS & Schedule B). The HS is revised approximately every five years. For more information, see The World Customs Organization.

The US Harmonized Tariff Schedule (HTS) comprises a hierarchical structure for describing all goods in trade for duty, quota, and statistical purposes. This structure is based upon the international Harmonized System (HS), administered by the World Customs Organization. This classification system is used for all imports into the United States, and is valid to use for most exports; This is important to note and it is highly recommended to strictly use Schedule B for all your export shipments.

The Schedule B is a counterpart of the HTS and is designated for all exports out of the United States. This classification system does not always line up to the HTS system and is recommended to strictly utilize this classification system for all of your exports. Furthermore, this classification system is not valid for any import shipments.

Links to the Classification Systems

US Harmonized Tariff Schedule (HTS): The U.S. International Trade Commission (USITC) publishes and maintains the HTS and provides technical information on its structure and modification. However, the Bureau of Customs and Border Protection (CBP, formerly the U.S. Customs Service) of the Department of Homeland Security is solely authorized to interpret the HTS, to issue legally binding rulings or advice on the tariff classification of imports and their treatment upon entry into the United States, and to administer the customs laws. The following link will lead you the electronic copy of the HTS, www.hts.usitc.gov/current.

Schedule B: The U.S. Commerce Department, Census Bureau, Foreign Trade Division administers and uses the Schedule B. The following link will lead you the electronic copy of the Scheduled B, www.census.gov/foreign-trade.

Seeking the US Government’s Guidance

• Customs Rulings Online Search System (CROSS): www.rulings.cbp.gov.

• CROSS is a searchable database of CBP rulings that can be retrieved based on simple or complex search characteristics using keywords and Boolean operators. CROSS has the added functionality of CROSS referencing rulings from the initial search result set with their modified, revoked or referenced counterparts.

• Rulings collections are separated into Headquarters and New York and span the years 1989 to present. Collections can be searched individually or collectively.

• Schedule B Search Engine: www.uscensus.prod.3ceonline.com. A search engine to help identify your goods Schedule B Code.

• USA Trade Online: www.usatrade.census.gov.

  The official source of U.S. merchandise trade data, offers current and historical U.S. import and export statistics. Use USA Trade Online to:

  • Appraise trading trends and market outlook

  • Improve market research and development

  • Measure the impact of foreign competition

  • Use trade data as a statistical resource for determining trade policies

• US International Trade Commission Assistance: www.usitc.gov. An emailing hotline for your questions and concerns regarding HTS Code selection.