Harmonized Tariff, A Guide for Importers and Exporters

Harmonized Tariff, A Guide for Importers and Exporters

How to Use the Harmonized Tariff Schedule: A Guide for Importers and Exporters

The Harmonized Tariff Schedule (HTS) is a system of classification that assigns a specific code to every product that is imported or exported. The HTS code determines the duty rate and other requirements for each product. The HTS is based on the international Harmonized System (HS) of nomenclature, which is used by most countries in the world.

Why is the HTS important?

The HTS is important for several reasons. First, it helps to ensure that the correct amount of duty is paid on imported and exported goods, which affects the trade balance and revenue of the countries involved. Second, it helps to facilitate trade by providing a common language and standard for identifying products across different markets and customs authorities. Third, it helps to monitor and enforce trade agreements, regulations, and policies, such as quotas, antidumping measures, and preferential tariffs.


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How to find the HTS code for a product?

The HTS code for a product consists of 10 digits, divided into four parts: the HS chapter, the HS heading, the HS subheading, and the HTS statistical suffix. The first six digits are the same as the HS code, which is harmonized at the international level. The last four digits are specific to each country or region, which may have different duty rates or rules for certain products.

To find the HTS code for a product, you can use one of the following methods:

  • Search online using the HTS database provided by the U.S. International Trade Commission (USITC) at https://hts.usitc.gov/. You can enter a keyword, a description, or a partial or complete HTS code to find the matching products and their codes.
  • Consult the printed version of the HTS, which is updated annually and available from the U.S. Government Publishing Office (GPO) at https://bookstore.gpo.gov/catalog/international-foreign-affairs/trade-tariffs/harmonized-tariff-schedules.
  • Contact a customs broker, a freight forwarder, or an expert in international trade who can help you classify your product and advise you on the applicable duty rate and requirements.

What are some tips for using the HTS correctly?

Using the HTS correctly can help you avoid delays, penalties, and disputes when importing or exporting goods. Here are some tips to keep in mind:

  • Read the general rules of interpretation (GRI) and the additional U.S. rules of interpretation (ARI) that explain how to apply the HTS to different types of products and situations.
  • Pay attention to the notes and footnotes that provide additional information or exceptions for certain products or categories.
  • Use the most specific and accurate description possible for your product, based on its name, characteristics, composition, function, origin, and end use.
  • Check if your product qualifies for any special treatment or preference under any trade agreement or program, such as the Generalized System of Preferences (GSP), the African Growth and Opportunity Act (AGOA), or the U.S.-Mexico-Canada Agreement (USMCA).
  • Keep records of your product classification and documentation for at least five years, in case of any audit or inquiry by customs authorities.

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Harmonized Tariff Schedule: An Overview

The Harmonized Tariff Schedule of the United States (HTS) is a document that sets out the tariff rates and statistical categories for all merchandise imported into the United States. The HTS is based on the international Harmonized System (HS), which is the global system of nomenclature applied to most world trade in goods. The HTS is updated periodically to reflect changes in trade patterns, product classifications, and tariff preferences. The HTS is administered by the U.S. International Trade Commission (USITC) and enforced by the U.S. Customs and Border Protection (CBP) of the Department of Homeland Security.

Harmonized Tariff Schedule: Benefits and Challenges

The Harmonized Tariff Schedule provides a common language for trade and facilitates the collection of trade statistics, the implementation of trade agreements, and the enforcement of trade laws and regulations. The HTS also helps traders and consumers to identify the applicable tariff rates and other import requirements for different products. The HTS is accessible online through various web portals, such as the HTS Search, the HTS Archive, and the Tariff Database.

However, the Harmonized Tariff Schedule also poses some challenges for users and administrators. The HTS is a complex and dynamic document that requires constant revision and interpretation to keep pace with the evolving global trade environment. The HTS may also contain ambiguities, inconsistencies, or errors that may lead to disputes or confusion among traders, customs officials, or other stakeholders. Moreover, the HTS may not fully reflect the actual trade flows or market conditions of certain products or sectors, especially those that are subject to non-tariff barriers, such as quotas, subsidies, or sanitary and phytosanitary measures.

Harmonized Tariff Schedule: Future Trends and Developments

The Harmonized Tariff Schedule is expected to undergo further changes and improvements in the future, as the USITC, CBP, and other relevant agencies continue to monitor and update the HTS in accordance with domestic and international trade policies and practices. Some of the potential trends and developments that may affect the HTS include:

  • The implementation of new or revised free trade agreements (FTAs) that may modify the tariff rates or preferences for certain products or countries.
  • The adoption of new or amended HS nomenclature by the World Customs Organization (WCO) that may alter the product classifications or descriptions in the HTS.
  • The incorporation of new or enhanced digital technologies that may facilitate the access, search, analysis, or verification of HTS data and information.
  • The integration of new or expanded trade data sources that may provide more accurate, timely, or comprehensive statistics on HTS-related trade flows or patterns.

References:

http://www.wcoomd.org/en/topics/nomenclature/overview/what-is-the-harmonized-system.aspx

http://www.wcoomd.org/en/about-us/wco-members/membership.aspx

https://www.science.org/doi/10.1126/science.aaa3141

https://ui.adsabs.harvard.edu/abs/2015Sci…348..291C

https://doi.org/10.1126%2Fscience.aaa3141

https://hts.usitc.gov/
https://www.usitc.gov/harmonized_tariff_information

https://hts.usitc.gov/

https://www.cbp.gov/sites/default/files/documents/ICP022_3.pdf

http://www.wcoomd.org/en/topics/nomenclature/instrument-and-tools/hs-nomenclature-2017-edition.aspx



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