Export Commodity Classification Commodity Analysis Branch Foreign Trade Division

2  The international Harmonized System for commodity classification  Export commodity classification tools and tips Today’s Topics

3 Structure: 2-digit Chapter94 4-digit Heading digit Subheading digit Legal digit Statistical Harmonized System

4

5 Statistical Classification of Domestic and Foreign Commodities Exported from the United States  Approximately 9,000 codes  Revised and/or produced annually Schedule B Manual

6  General Rules of Interpretation  Schedule B Browse/Search  WCO Explanatory Notes  HTS Online Reference Tool  Customs Rulings  CAB Assistance Classification Tools

7 Foundation of the GRIs: Merchandise must first be classified in the Harmonized System by the 4-digit heading whose terms most specifically describe the merchandise. Only 4-digit headings are comparable. General Rules of Interpretation

8 The following are provided for ease of use:  Table of contents  Alphabetical index  Section and chapter titles Classify according to commodity description:  Headings  Related section and chapter notes GRI 1

9 GRI 1 Example

10 (a) Articles that are incomplete or unfinished, unassembled or disassembled:  Are classified as complete articles.  Must have the essential character of the finished articles. (b) Mixtures and combinations: As long as the specific mixture is not referenced elsewhere, classify according to essential character. GRI 2

11 For products that can be classified in two or more areas, classify by: (a)Most specific heading (b)Essential character (c)Last heading in numeric order GRI 3

12 Classify goods according to which they are most akin. This should be used infrequently. GRI 4

13 (a) Specially fitted containers are classified with the article. Except: when the container determines the essential character (b) Packing materials and containers  Are classified with the goods.  Must not be suitable for repetitive use. Except: metal containers for compressed gas GRI 5

14 Classification of goods in the subheading of a heading shall be determined according to:  The terms of the subheading  Related subheading notes Section, chapter and subchapter notes may also apply. GRI 6

15 GRI 6 Example

16 Except where specifically noted, the following rules apply: (a) End-use is determined by use in the U.S. immediately prior to export. (b) “Parts” classifications shall not prevail over a specific provision for such parts or accessories. (c) For classification of goods in which a textile material is named, follow the principles in Section XI, Note 2 regarding mixtures of two or more textile materials. Additional U.S. Rule of Interpretation

17

18 World Customs Organization (WCO)  Explanatory Notes – United States International Trade Commission (USITC)  HTS Online Reference Tool – Customs and Border Protection (CBP)  Customs Rulings Online Search System (CROSS) –  What Every Member of the Trade Community Should Know About: Tariff Classification – _pubs/ Additional Tools

19 Schedule B Help Line , Option 2 Fax Commodity Analysis Branch

20 General Rules of Interpretation Schedule B Browse/Search WCO Explanatory Notes HTS Online Reference Tool Customs Rulings CAB Assistance Classification Tools Review

21  There is a commodity code for every physical good.  Read the 4-digit headings to determine where the product is classified.  Refer to the Customs Rulings for guidance.  When appropriate, use NESOI. General Tips

22 Tony Pu Commodity Analysis Branch Foreign Trade Division Contact