Questions And Answers

The Harmonized System (HS) came into effect in 1988. It has been developed and maintained by the World Customs Organization (WCO). WCO is an independent intergovernmental organization based in Belgium, with more than 200 member countries.

Its activities include measures to secure interpretation of the Harmonized System and periodically updating it in view of the technological developments and changes in international trade patterns.

The entire process is managed through the Harmonized System Committee that represents the HS convention and the Contracting Parties. The committee decides on classification questions, prepares amendments and settles disputes. It also updates the HS every 5-6 years.

The Harmonized Tariff Schedule (HTS) became effective in 1989. It sets out the tariff rates and statistical categories for all products imported into the US. The schedule is published and maintained by the U.S. International Trade Commission. The commission also makes recommendations regarding amendments needed to keep the HTS consistent with international nomenclature.

The U.S. Customs and Border Protection is the only agency that administers the HTS at American ports of entry and also provides legally binding advice and rulings on matters concerning the classification of imports.

Harmonized System (HS) codes are standardized international system used for classifying internationally traded products. It is a six digit code.

First two digits: chapter the products are classified in

Next two digits: heading within the chapter

Final two digits: subheading within the chapter

Here is how to read the six digit HS code

3401.11 is the HS code for toilet soap bars.

34 identifies the chapter-Soap, organic surface-active agents, washing, lubricating, polishing or scouring preparations, artificial or prepared waxes, candles and similar articles, modelling pastes, dental waxes and dental preparations with a basis of plaster

3401 identifies the heading- Soap, organic surface-active preparations used as soap, skin washing, in bars, cakes, moulded pieces, shapes, liquid or cream, containing soap or not, for retail, paper, wadding, felt and nonwovens, impregnated, coated or covered with soap or detergent

3401.11

Soap and organic surface-active products; in the form of bars; cakes; moulded shapes; and paper; wadding; felt and nonwovens; impregnated; coated or covered with soap or detergent; for toilet use (including medicated products)

The Harmonized Tariff Schedule (HTS) is the primary resource for determining customs duty classifications for goods imported into the United States. The HTS codes are 7-10 digits long with the first six digits being the HS code.

For example, 3401.11.10.00 is the HTS code for castile soap. The first six digits are the HS code (described in the above example) and the next two are the US subheading for the HS code and the last two are the statistical suffix.

HS classification is the process of assigning HS codes to internationally traded commodities. All products can be classified in the HS using GRI or the General Rules for the Interpretation of the Harmonized System. You can determine HS/HTS codes by a variety of factors including the product’s form, composition and function. Here are some examples of classification.

Classification by product form

0702.00: Tomatoes, fresh or chilled:

2103.20: Tomato ketchup and other tomato sauces

Classification by Material composition

6201

Men's or boys' overcoats, carcoats, capes, cloaks, anoraks (including ski-jackets), windbreakers and similar articles (including padded, sleeveless jackets), other than those of heading 6203:

6201.91: Of wool or fine animal hair

6201.92: Of cotton

Classification by Function

As shown below, various bags, including plastic bags and sheeting are classified under heading 4202 and subheading 4202.12. However, sleeping bags are classified under 9404.30.

4202

Trunks, suitcases, vanity cases, attache cases, briefcases, school satchels, spectacle cases, binocular cases, camera cases, musical instrument cases, gun cases, holsters and similar containers; traveling bags, insulated food or beverage bags, toiletry bags, knapsacks and backpacks, handbags, shopping bags, wallets, purses, map cases, cigarette cases, tobacco pouches, tool bags, sports bags, bottle cases, jewelry boxes, powder cases, cutlery cases and similar containers, of leather or of composition leather, of sheeting of plastics, of textile materials, of vulcanized fiber or of paperboard, or wholly or mainly covered with such materials or with paper:

4202.12: With outer surface of plastics or of textile materials:

9404

Mattress supports; articles of bedding and similar furnishing (for example, mattresses, quilts, eiderdowns, cushions, pouffes and pillows) fitted with springs or stuffed or internally fitted with any material or of cellular rubber or plastics, whether or not covered:

9404.30: Sleeping bags:

You can use the Semantics3HS Code classification API to auto classify your product and find out a HS code. Sign Up Here.

When shipping a product across countries, it is a legal requirement to assign a six digit code to the product. The code is divided into three groups of two. The first two classify the product, the next two further define the product and the last two specify the product in detail. For example, the two digits of the HS code may say that the product is clothing; the next two might say it is shirt and the last two specify it is women’s red shirt.

Chapter: There are 21 sections divided into 96 chapters

Heading: This specifies the category within the particular chapter.

Sub-heading: The final two digits of the HS codes define sub categories of products and are more specific.

Example:

Chapter 84: Nuclear reactors, boilers, machinery and mechanical appliances, parts thereof

Heading 8471: Automatic data processing machines and units thereof, magnetic or optical readers, machines for transcribing data onto data media in coded form and machines for processing such data, not elsewhere specified or included

Sub-heading 8471.30: Automatic data processing machines; portable; weighing not more than 10kg; consisting of at least a central processing unit; a keyboard and a display

HTS code 8471.30.0100: Portable Digtl Automatic Data Processing Machines, weight Not More Than 10 Kg, consisting Of At Least A Central Processing Unit, keyboard & A Display

In the abovementioned HTS code, 01 is the US subheading of the HS code and 00 is the statistical suffix (nil in this case)

The Harmonized Commodity Description and Coding System, commonly known as “HS”, involves over 200 countries world over and is designed to classify and standardize internationally traded products among members. It comprises 5,300 product descriptions organized as headings and subheadings, arranged in 99 chapters, and categorised in 21 sections.

The Harmonized System (HS) is maintained by the World Customs Organization (WCO). Among its other activities, WCO also has the duty to update the HS codes every five years. These changes are called revisions. Under the 1983 HS Convention Article 16, WCO provides an update amendment, guidelines and recommendation of an “Internationally Standardized and Recognized System of Names and Numbers”.

The HS codes are updated periodically in light of changes in trade patterns and developments in technology. The WCO updates the system through the Harmonized System Committee, which represents the HS convention and contracting parties. This committee examines policy matters, decides on classification questions, prepares amendments to the Explanatory Notes and settles disputes.

The HS was introduced way back in 1988 and has been adopted by almost every country. Since its inception, it has undergone numerous changes in the classification of products. The revisions came into effect in years 1996, 2002, 2007, 2012 and the most recent one in 2017.

The Harmonized System (HS) is a list of the classification codes for products that are imported or exported. Through this system, products are assigned a six-digit classification code chosen from a library of over 200,000 commodity listings.

HS code is a six-digit number. However, countries can add subsequent digits in order to personalize the system for their customs purposes. For example, in the United States, imports are assigned a 10-digit code from the Harmonized Tariff Schedule (HTS), administered by the International Trade Commission. HTS classifies products based on their name, material composition and intended function.

There are six General Rules of Interpretation (GRI) that are used for application of the HS. These rules provide the overall context for classification of the products, the logic that should be used and in which particular order.

Each HS/HTS code has a corresponding rate of duty, and once a code has been assigned to a particular product, the shipper will know the exact duty cost for importing that product into a particular country.

For example, if you are looking to export or import sweet biscuits, here is how HS code will be assigned.

For the same product, HTS code is assigned is in the following way:

The Harmonized system (HS) classification is a six-digit code for classifying internationally traded goods. These codes are used by customs authorities across the world to identify tax and duty rates for different products.

HS codes are administered by the World Customs Organization and are recognized in over 98 percent of the global trade. This code is a universal classification tool. Many countries add additional digits to this code to further classify the products in specific categories. These digits differ across countries.

These codes are required for international export documentation and all commercial invoices. In fact, any documents that are used internationally should display the HS code.

The Harmonized Tariff Schedule (HTS) code is a 10 digit classification system specific to the United States. The first six digits are the HS code, and the States next four numbers are unique. All U.S importers must know and use the correct codes because commodity duties are based on HTS classification.

With correct HS/HTS codes, you can be sure that you are not losing out on preferential tariff rates under free trade agreement (FTA). HS/HTS codes are also needed to ensure that your business is in complete compliance with all international trade regulations.

Harmonised system (HS) code is a common standard world over for describing the type of product that is shipped internationally. Each product that crosses or enters international borders has to be declared to customs using HS code.

Whether you are shipping apples or sophisticated machinery, it is a legal requirement to assign a six digit HS code.

HS/HTS codes are used by custom authorities and other regulatory bodies to monitor and control the international trade of commodities. These are also used by statistical agencies to compile trade data. These codes are important because they are used in:

• Customs tariff, i.e. Harmonized Tariff Schedule (HTS)·        
• Rules of origin
• Collection of international trade statistics
• Transport tariff and statistics
• Collection of internal taxes
• Monitoring controlled goods such as narcotics, weapons etc.
• Trade negotiations
• Customs controls and procedures

These codes are not only useful for government agencies, but for companies as well. They help identify trade opportunities overseas and calculate the total cost of imported goods.

Failure to classify the products correctly can lead to various problems including:

• Seizure of goods
• Non-compliance penalties
• Denial of import privileges
• Border delays

Having an accurate tariff classification helps ensure that all your shipments are fully compliant with international trade regulations.

According to the World Customs Organization, the governing body for Harmonized system, “Harmonized system is the universal economic language and code for goods and an indispensable tool for international trade”. HS codes are recognized in 98 percent of international trade.

HS code is a six-digit classification used world over to identify the tax rates and duty for specific types of internationally traded goods. These numbers are used for referencing the classification with vendors, customers and anyone outside the country.

Many countries (including the US), add additional digits to the HS code to further classify goods in different categories. These digits are unique to every country.

The Harmonized Tariff Schedule (HTS) is the 10-digit classification system specific to the US. HTS codes are administered by the U.S. International Trade Commission (ITC). These codes help in estimating the customs duties you will need to pay upon importing a product into the US.

The first six digits of the HTS code are the HS code and the last four digits are unique. Every US importer must use this code.

For example, HTS code for candied nuts is 1704.90.1000.

1704: sugar confectionery (including white chocolate), not containing cocoa

1704.90 (HS Code): Confections or sweetmeats ready for consumption

1704.90.1000: Candied nuts (10 is the US subheading of the HS code and determines duty rates; last two digits stand for statistical suffix, which is not applicable in this case)

1704.90 stands for ready to eat confections and sweetmeats across the world. 1704.90.1000 refers to candied nuts being imported into US.

As an importer or exporter, it is your legal responsibility to use HS/HTS codes as correct classification of your goods. An HS/HTS code search API helps you do just that.

Tariff classification can be quite tricky, and relying solely on human intelligence may not be a great idea. An HS/HTS code search API is a search engine that helps you determine the harmonized system (HS) code of the products you are interested in.

These search tools rely on cutting edge artificial intelligence technologies to help classify the products at scale. So, you get accurate results in no time without having to consult third parties such as custom brokers.

To get correct tariff classification for your product, you just need to enter the product details with as must precision as possible. It may allow you to enter product name, brands, or even barcodes. The program will look up the database based on the given input and generate HS/HTS codes for your product.

An HS/HTS code search API is particularly useful for importers and exporters that deal in a number of products and trade with numerous countries. In such cases, tariff classification can become painstakingly complex. Search APIs can make things a lot easier for such importers and exporters by helping them classify their goods at scale right up to the unique country id.

You can use the Semantics3 HS Code classification API to auto classify your product and find out a HS code. Sign Up Here.

Tariff Classification is the process of determining the accurate tariff code for internationally traded goods. Classification of goods impacts customs and excise duties, import VAT, import and export restrictions, and preferential duties.

Normally, companies depend on the freight forwarders for tariff classification. However, it is important to understand that correct classification is the responsibility of the importer or exporter.

Harmonized System (HS) is the basis for the international coding system, which includes general rules for interpretation (GRI) that define how goods shall be classified in the tariff schedule.

The Harmonized system and customs tariff is divided into 21 sections and 97 chapters. The goods must be classified in the right 4-digit HS heading, then the appropriate 1-dash subheading, followed by 2-dash subheading and so on.

In order to classify the goods correctly, you must have:

- Exact information about the product to be classified

- Knowledge of the technique of classification and customs tariff.

You can use the Semantics3 HS Code classification App or API to auto classify your product and find out a HS code. Sign Up Here.

An HS/HTS code stands for Harmonized System or Harmonized Tariff Schedule. These codes are developed by the World Customs Organization (WCO) and are used to define and classify internationally traded goods. Each product imported or exported internationally is assigned an HTS code corresponding with the HTS schedule of the country of import.

The difference between HS and HTS code is the number of digits within these codes. An HS code is a global standard and has six digits. On the other hand, an HTS code has 7-10 digits and is unique after the 6th digit. The HTS code is determined by the countries of import.

All products imported and exported have to classified with an HS and HTS code if required by the country importing the product. Now you can use Semantics3’s technology to find the code for your product, or your entire product catalog. Try using our app or API.

HS Code: 6404.11

64 refers to the chapter in HS nomenclature

Chapter 64 Footwear, gaiters and the like, parts of such articles

04 refers to the heading within the chapter

Heading 6404 Footwear, with outer soles of rubber, plastics, leather or composition leather and uppers of textile materials

11 refers to sub-heading within the heading

Sub-heading 6404.11 Sports footwear; tennis shoes; basketball shoes; gym shoes; training shoes and the like; with outer soles of rubber or plastics and uppers of textile materials

HTS Code: 6404.11.20.30

6404.11 is the HS Code

20 refers to the US sub-heading and establish duty rates

6404.11.20: Having uppers of which over 50 percent of the external surface area (including any leather accessories or reinforcements such as those mentioned in note 4(a) to this chapter) is leather

30 is a statistical suffix used for collecting trade data

6404.11.20.30: For men