Imports

Most imports into the U.S will require an import classification number known as a Harmonized Tariff Schedule (HTS) number. This determines the amount of duty that will be paid and how a product is regulated.

The U.S. Harmonized Tariff Schedule (HTS) contains over 17,000 U.S.-specific ten-digit codes.  Each code lists the Article Description, Unit of Quantity, and Rates of Duty.

How to select the correct HTS number?

For guidance, there are General Rules of Interpretation(GRI); Chapter, Section, and Explanatory Notes available.  Other tools helpful for tariff classification are Customs Binding Rulings and Informed Compliance Publications issued by U.S. Customs & Border Protection.

Classification could be based on the type of product, the material it’s made of,  end-use, and more. It’s essential to follow the GRIs to determine the correct classification. Customs Brokers can often assist with providing classification suggestions.

Example: Here is a snapshot of the Harmonized Tariff Schedule showing the different classification options for a pencil. There are five different 10-digit tariff numbers available to choose from. Only one matches the Schedule B listing. 

Exports

For U.S. exports, Schedule B codes identify the articles to be exported.  Schedule B codes are similar to HTS numbers and in many cases are the same 10- digit number. In general, there are fewer Schedule B numbers to choose from because the descriptions are less detailed.  Each code lists the Commodity Description and Units of Quantity. They are used to report statistical quantities to U.S. Customs.

How to select the correct Schedule B number?

The U.S. Census Bureau’s Schedule B Search Engine tool can help narrow down which number to report.  It’s possible to search by description, HS code, chemical name or CAS number. Since Schedule B’s are based on the same system as HTS numbers, it’s simple to use the first six digits of an HTS number or HS code (if known) as a starting point. Proceed through the listing until you find the description that best matches the product at the 10-digit Schedule B Number level.

Example: Here is a snapshot of the Schedule B listing showing the different classification options for a pencil. There are only three different 10-digit Schedule B numbers available.  Only one option, 9609.10.0000, matches the Harmonized Tariff Schedule.

Key to Successful Classification

We encourage our importers and exporters to become familiar with:

• Sections of the HTS and Schedule B that relate to their products
• Tools available to aid in classification
• Details about the product being imported or exported

Ultimately, the importer or exporter is responsible for providing the proper classification.

NNR has professionals with many years of experience in classification to help guide your search.