Presentation on theme: "Harmonized Codes -Classifying Products"— Presentation transcript:
1 Harmonized Codes -Classifying Products International System of Numbering used to Classify Products
2 Classifying your Product Helps identify potential foreign marketsHelps track activities of competitorswhere similar products are being shipped,quantities shipped,revenue generated off the shipments.Helps track foreign import tariffsNeeded to look up tariff rates; determine whether product qualifies for preferential treatment under trade agreement like NAFTANeeded to complete SED shippers export declaration form, certificate of origin, etc.
3 How Harmonized System Works: HS consists of 22 sections divided into chapters; all products are described by a ten digit number that is broken down by chapter, heading subheadingSection 1 Live Animals and Animal Products contains 5 chapters03 (Chapter in which commodity is classified) Fish and crustaceans, molluscs and other aquatic invertebratesExamine all chapters in section before selecting specific chapter.N.e.s.o.i. ((not elsewhere specified or included) catchall category my cover your productRead chapter notes for help in classification0302 (Heading in chapter) Fish, fresh or chilled, excluding fish fillets and other fish meat of heading 0304(Subheading) Pacific salmon, Atlantic salmon and Danube salmonFirst six digits are standardized worldwideSubheadings are specific(Commodity code) Chinook (king) salmonLast four digits may vary from country to country0000 means country did not want to classify any further
4 Schedule B vs. HTS Schedule B is used for exporting products from U.S. (Managed by U.S. Census Bureau in Dept. of Commerce)Harmonized Tariff Schedule (HTS) used when importing into the U.S.(Managed by Office of Tariff Affairs and Trade Agreements in U.S. International Trade Commission)Used by customs to identify products for application of dutiesFirst six digits of both codes are the same But last four digits may and do vary.
5 Hints for Locating Correct Schedule B Code Go to Schedule B bookHarmonized System (HS) and the Schedule BCheck index for quick way of determining how product is classifiedUse search function on internet versionConsult HTS since first 6 digits the same for both and HTS may include other termsTelephone U.S. Census Bureau of the U.S. Department of Commerce (local) or CITD or local U.S. Customs officeJagodka Concordance and LookupBinding Rulings (Free service of U.S. Customs; used for imports)Review your product information and make a final determination
6 Standard Industrial Classification Code (SIC) 4 digit code which describes what a company does, e.g is SIC for company “primarily engaged in the maintenance and repair of computers and computer peripheral equipment”Standard Industrial Classification (SIC) system
7 North American Industry Classification System (NAICS) 6 digit code which has replaced the U.S. Standard Industrial Classification (SIC) system.Developed jointly by the U.S., Canada, and MexicoIdentifies many new businessesNorth American Industry Classification System (NAICS)
8 Standard International Trade Classification (SITC) Developed by United Nations for reporting international trade statistics3 to 5 digits and many statistics only reported at the 2 to 3 digit levelAbout 100 countries report import and export trade statistics to UN (See UN COMTRADE data base for imports)Standard International Trade Classification (SITC) system
9 Locating Statistical Trade Resources Click on andGo to Trade Resource Directory
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