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Export Commodity Classification Commodity Analysis Branch Foreign Trade Division. Today’s Topics. The international Harmonized System for commodity classification Export commodity classification tools and tips. Harmonized System. Structure: 2-digit Chapter 94 4-digit Heading 9401
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Export Commodity ClassificationCommodity Analysis BranchForeign Trade Division
Today’s Topics • The international Harmonized System for commodity classification • Export commodity classification tools and tips
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
Schedule B Manual • Statistical Classification of Domestic and Foreign Commodities Exported from the United States • Approximately 9,000 codes • Revised and/or produced annually
Classification Tools • General Rules of Interpretation • Schedule B Browse/Search • WCO Explanatory Notes • HTS Online Reference Tool • Customs Rulings • CAB Assistance
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.
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
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.
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
GRI 4 Classify goods according to which they are most akin. This should be used infrequently.
(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 GRI 5
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. GRI 6
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. Additional U.S. Rule of Interpretation
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_compliance_pubs/
Commodity Analysis Branch Email ftd.scheduleb@census.gov Schedule B Help Line 1-800-549-0595, Option 2 Fax 301-763-4347
Classification Tools Review • General Rules of Interpretation • Schedule B Browse/Search • WCO Explanatory Notes • HTS Online Reference Tool • Customs Rulings • CAB Assistance
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.
Contact Tony Pu Commodity Analysis Branch Foreign Trade Division tony.pu@census.gov