Trade Compliance – HTS and Schedule B
An HS code or HTS code stands for Harmonized System or Harmonized Tariff Schedule. Developed by the World Customs Organization (WCO), the codes are used to classify and define internationally traded goods. In most cases, in order to import or export a product internationally, the traded good must be assigned an HTS code that corresponds with the Harmonized Tariff Schedule of the country of import. The difference between an HS code and HTS code is the number of digits within the code. A code with six digits is a universal standard (HS Code) and a code with 7-10 digits (HTS Code) is often unique after the 6th digit and determined by individual countries of import.
A Schedule B number is a 10-digit number used in the United States to classify physical goods for export to another country. The Schedule B is based on the international Harmonized System (HS) of the 4- and 6-digit headings and subheadings commodity classification codes; they are maintained by the U.S. Census Bureau. Schedule B numbers are used by the Foreign Trade Division to collect and publish the U.S. export statistics. Schedule B numbers are required to be reported in the Automated Export System when shipments are valued over $2,500 or the item requires a license.
HTS codes are required for imports. If you import and export, HTS is recommended – import and export commodity codes match at the six-digit level. However, there is a list of HTS codes that cannot be used for export list here & Schedule B must be used.
From CBP [Customs & Border Protection]:
The Harmonized Tariff System (HTS) provides duty rates for virtually every item that exists. The HTS is a reference manual that is the size of an unabridged dictionary.
Experts spend years learning how to properly classify an item in order to determine its correct duty rate. For instance, you might want to know the rate of duty of a wool suit. A classification specialist will need to know, does it have darts? Did the wool come from Israel or another country that qualifies for duty-free treatment for certain of its products? Where was the suit assembled, does it have any synthetic fibers in the lining?
To determine HTS you can use the HTS search tool from the USITC [United States International Trade Commissions]. This link will take you to the search tab. To learn the best ways to use the search, check out the iGuide in the upper right corner. This guide will advise results based on words and phrases. If you click the VIEW tab, you can review the HTS chapter by chapter. If in doubt, contact a customs broker for assistance.
Schedule B numbers are for exports only. Check out the Census search. This search feature can help you understand and interpret common commercial product information, and it interacts intelligently and intuitively with users to eliminate classification complexity. For additional information on Schedule B
If you have questions about HTS or Schedule B, please feel free to contact us at superior@supfrt.com
Leave a Reply