Harmonized System (HS) Codes

10/04/2021

The Harmonized System (HS) Codes consist on a standardized numerical method that classifies traded products. It is used by Customs authorities all over the world in order to identify products when assessing duties and taxes and for gathering statistics. The World Customs Organization (WCO) is in charge of the administration of the HS Code.

Every product has its own specific six-digit code so that it can vary from one to another. Some  countries are allowed to add digits to the first six determined digits, which allows an amplified classification.

The United States counts on its own product classification system, called Schedule B number, which uses a 10-digit code, including the HS's six digits.There is a Schedule B number for every physical product, from paperclips to airplanes.


How to use the HS Code

On the export process, you need to count with the U.S. Schedule B number and the foreign country's version of the HS Code. The uses of the HS Code are:

  • To classify physical goods for shipments to a foreign country.
  • If the item's value passes $2500 or requires a license, it helps report the shipment in the Automated Export System (AES).
  • Helps with the completion of the required documentation.
  • Determine import tariff (duty) rates and figure out if a product qualifies for a preferential tariff under a fee trade agreement.
  • Obtain trade statistics by conducting a market research.
  • Comply with U.S law, where applicable.


How to generate a product's HS Code

In order to help you determine what is the correspondent HS Code for any product that you need to ship or tarde, go to the next link http://www.foreign-trade.com/r...

It is important for you to remember the code's specified length, being careful of not exceeding the 6, 8 or 10 digits, depending on the country you are from.


How to identify your Product's (U.S.) Schedule B Code

The Census Bureau offers a free, widely used online Schedule B search tool that can help with the classification of the traded products. If it is difficult to classify, the Customs Rulings Online Search System (CROSS) database can help you solve this problem.

Special situations:

  • Shipping multiple items as a set: for the most part, determining a product's Schedule B code is straightforward. For example, an unassembled bicycle that is sold in a box, containing the bicycle frame, handlebars, pedals, and seat is classified as a bicycle (because the item is sold as one unit) and not a several different components.
  • Textiles/Apparel shipped as a set: the rules that govern Schedule B Codes for textiles and apparel sets are unique. Unless the context otherwise requires, textile garments are to be classified in their own even if put up in sets for retail price.

Reference

https://www.trade.gov