1. CHAPTER XVII HARMONIZED TARIFF SCHEDULE OF THE U.S. (HTSUS)
Harmonized System
Structure of the HTSUS
Columns of the HTSUS
Commingling of Goods
General Rules of Interpretation
Types of Customs Duty

2. Harmonized System
Harmonized Commodity Description & Coding System, in short, Harmonized System (HS)
Uniform international tariff nomenclature system
Adopted by Customs Cooperation Council (CCC), which was established in 1952 and became World Customs Organization (WCO) in % of merchandise trade
Obligations of WCO members
Undertake to conform the country’s import and export trade nomenclature to the language and numerical code of the Harmonized System
Apply general rules of interpretation and section and chapter notes
Make import and export statistics publicly available in conformity with the HS language

3. Harmonized System Structure of Harmonized System
Consisting of 97 chapters and 21 sections
Covers 5,000 commodity groups, each identified by a 6-digit code
Contains
General Rules of Interpretation
Section Notes
Chapter Notes

4. Structure of Harmonized Tariff Schedule of the U. S. (HTSUS)
99 Chapters and 22 Sections
Effective January 1, 1989 in the U.S. by the Omnibus Trade Act of 1988
Chapter 98: Special Classification Provisions
Chapter 99: Temporary legislation & modifications
Pay attention to the notes of each section and chapter
HTSUS is published by U.S. International Trade Commission (USITC) but administered by Bureau of Customs & Border Protection (USCBP), Dept. of Homeland Security.
USCBP is the only agency that can provide legally binding advice or rulings on classification of imports

5. Columns of HTSUS 1) Number Column Heading/Subheading Column
4-digit heading number: General description
8-digit subheading number: Detailed description & rate of duty
First two digits indicate chapter number
Statistical Suffix: 2-digit statistical reporting number

6. Columns of HTSUS 2) Article Description Column
General description with product category like “Live fish”: 4-digit number
Detailed description with specific product like “Ornamental fish, or Trout or Eels”: 8-digit number
3) Unit of Quantity Column
Metric Measurement System such as kg, m, l, doz, gross

7. Columns of HTSUS
4) Rates of Duty Column
Column 1: The Normal Trade Relations (NTR) (formerly Most-Favored-Nation, MFN) status conferred by the United States
General subcolumn : Rates of duty for imports from the NTR nations not entitled to special tariff treatment
Special subcolumn: More generous special rates of duty for special tariff treatment programs of the USA

8. Rates of Duty Column Column 1 Special subcolumn:
Generalized System of Preferences----A, A*, A+
Automotive Products Trade Act B
Agreement on Trade in Aircraft C
North American Free Trade Agreement
Goods of Canada CA
Goods of Mexico MX
African Growth & Opportunity Act D
Caribbean Basin Economic Recovery
Act E, E*
U.S.-Israel Free Trade Agreement IL

9. Rates of Duty Column Column 1 Special subcolumn (continued)
U.S.-Jordan Free Trade Agreement JO
U.S.-Caribbean Basin Trade Partnership
Act R
U.S. – Singapore Free Trade Agreement-----SG
U.S. – Chile’ Free Trade Agreement CL
U.S. – Australia Free Trade Agreement AU
U.S. – Morocco Free Trade Agreement MA
Dominican Republic-Central America
Free Trade Agreement (DR-CAFTA) P

10. Rates of Duty Column U.S.-Bahrain Free Trade Agreement-----------BH
U.S.-Oman Free Trade Agreement OM
U.S.-Peru Trade Promotion Agreement PE
U.S.-Korea Free Trade Agreement KR
U.S.-Colombia Trade Promotion Agreement-CO
U.S.-Panama Trade Promotion Agreement---PA

11. Rates of Duty Column Column 2: Non-NTR nations as of 1/1/2011
Cuba, North Korea
Latest NTR: Vietnam in December 2001 and Laos in February 2005

12. Commingling of Goods 8410.30.10 Check valve of copper………………….………….3%
Highest rate of duty among commingled components
Check valve of copper………………….………….3%
Check valve of iron or steel………………….………….…5%
Check valve of copper & iron…?

13. General Rules of Interpretation
Titles of sections, chapters and subchapters are provided for ease of reference only. Most goods can be classified according to language as it appears.
(2) Incomplete or unfinished articles that have essential character of complete or finished articles that are unassembled are classified as complete or finished articles

14. General Rules of Interpretation
(3) Goods are described in two or more tariff headings
a. Relative specificity-The most specific description
Shoes with leather……………..10.0%
Shoes, Orthopedic …………….Free
b. Essential character-Mixtures or composite goods of different materials put up for retail sale
Gift packages of wine, cheese and pears
Kits of fingernail clippers, razor blades, scissors, toothpaste, etc
c. Last in numerical order

15. General Rules of Interpretation
(4) Goods that cannot be classified under the above rules shall be classified under the heading appropriate to the goods
(5) Cases like camera cases, musical instrument cases or gun cases imported with a specific article designed for shall be classified under the heading of that article
(6) Comparisons have to be made at the equivalent level. 8-digit heading to 8-digit heading

16. General Rules of Interpretation
(7) A tariff classification controlled by use is to be determined by the principal use at or prior to the date of importation
(8) A tariff classification controlled by the actual use is satisfied only if such use is intended at the time of importation.
(9) A specific provision for parts prevail over a provision for parts of an article.
: Windshield wipers, 2.5%
: Parts of motor vehicle, Other, Free

17. General Rules of Interpretation
(10) Mixtures of two or more textile materials per Note 2 of Section XI:
Textile products classified as if consisting wholly of that one textile material which predominates by weight over each other single textile material
Woven fabrics of silk containing 85 percent or more by weight of silk or silk waste---0.8%
Woven fabrics of cotton containing 85 percent or more by weight of cotton %
Sweaters of man-made fibers
: Containing 25% or more by weight of leather %
: Other %

18. Types of Customs Duty Ad Valorem Duty According to the value
Percentage of entered value
Based on FOB price
: Men's or boys' shirts, knitted or crocheted, of cotton--: 19.7% (General, NTR), Free (AU, BH,CA,CL,IL,JO, MX,P,PA,PE,SG), 7.8% (KR), 45% (Column 2, Non-NTR)), January 1, 2017
Country FOB price Rate Duty
NTR $10, % $1,970.00
AU---SG $10,000 Free
KR $10, % $780.00
Non-NTR $10,000 45% $4,500.00

19. Types of Customs Duty (2) Specific Duty
Duty per unit of quantity such as kg or each of imported goods
Regardless of price
: Pineapples ¢/kg (General, NTR), Free (A+, AU, BH, CA, CL, D, E, IL, JO, MA, MX, OM, P, PA, PE, SG), 4.4¢/kg (Column 2, Non-NTR), January 1, 2017
Country Net Weight Rate Duty
NTR 10,000 kgs 0.35¢/kg $35.00
A+---SG 10,000 kgs Free
Non-NTR 10,000 kgs 4.4¢/kg $440.00

20. Types of Customs Duty (3) Compound Duty
Combined duty of ad valorem duty and specific duty
: Smoking pipes and cigar or cigarette holders of wood or root: 0.4¢ each+ 3.2% (Genera, NTR), Free (A, AU, BH, CA, CL, E, IL, JO,MA,MX,OM,P,PA,PE,SG), 5¢ each + 60% (Column 2, Non-NTR) January 1, 2017
Country Quantity FOB price Rate Duty
NTR ,000 pcs $10, ¢/ea
3.2%
$328.00
AU--SG ,000 pcs $10,000 Free
  Non-NTR 2,000 pcs $10,000 5¢/ea
60% 6,000.00
$6,100.00

21. Types of Customs Duty
: Men's or boy’s suits of artificial fibers containing 36% or more by weight wool or fine animal hair– 52.9¢/kg + 21% (General), Free (AU,BH,CA,CL,CO,IL,JO,MA, MX,OM, P,PA,PE,SG), 52.9¢/kg +58.5% (Column 2 ) (January 1, 2017)
1,000 suits at $50.00 each and 2 kgs each
Country Quantity FOB price Rate Duty
  NTR ,000 kgs $50, ¢/kg 1,058.00
21% ,500.00
$11,558.00
AU--- SG 2,000 kgs $50, Free
Non-NTR 2,000 kgs $50, ¢/kg ,058.00
58.5% , $30,308.00