Export Commodity Classification Commodity Analysis Branch Foreign Trade Division

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Export Commodity Classification Commodity
Analysis Branch Foreign Trade Division
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Todays Topics

• The international Harmonized System for commodity
  classification
• Export commodity classification tools and tips

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Harmonized System

• Structure
• 2-digit Chapter 94
• 4-digit Heading 9401
• 6-digit Subheading 9401.30
• 8-digit Legal 9401.30.80
• 10-digit Statistical 9401.30.8010

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Schedule B Manual

• Statistical Classification of Domestic and
  Foreign Commodities Exported from the United
  States
• Approximately 9,000 codes
• Revised and/or produced annually

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Classification Tools

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

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General Rules of Interpretation

• 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.

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GRI 1

• 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

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GRI 1 Example
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GRI 2

• (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.

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GRI 3

• For products that can be classified in two or
  more areas, classify by
• Most specific heading
• Essential character
• Last heading in numeric order

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GRI 4

• Classify goods according to which they are most
  akin.
• This should be used infrequently.

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GRI 5

• (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

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GRI 6

• 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.

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GRI 6 Example
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Additional U.S. Rule of Interpretation

• 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.

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Additional Tools

• World Customs Organization (WCO)
• Explanatory Notes http//www.wcoomd.org
• United States International Trade Commission
  (USITC)
• HTS Online Reference Tool http//hts.usitc.gov/
• Customs and Border Protection (CBP)
• Customs Rulings Online Search System (CROSS)
  http//rulings.customs.gov/
• What Every Member of the Trade Community Should
  Know About Tariff Classification
  http//www.cbp.gov/xp/cgov/trade/legal/informed_co
  mpliance_pubs/

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Commodity Analysis Branch

• Email
• ftd.scheduleb_at_census.gov
• Schedule B Help Line
• 1-800-549-0595, Option 2
• Fax
• 301-763-4347

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Classification Tools Review

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

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General Tips

• 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.

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Contact

• Tony Pu
• Commodity Analysis Branch
• Foreign Trade Division
• tony.pu_at_census.gov