The Ins and Outs of the HTS Schedule B in 2023

Exporting products from the United States requires navigating the intricacies of the Harmonized Tariff Schedule (HTS). Specifically, the HTS Schedule B contains critical information for meeting export regulations. This guide will explain what the HTS Schedule B is, how to look up codes, key sections, and advice for compliance.

What is the HTS Schedule B?

The HTS Schedule B is a comprehensive list of classification codes used to categorize commodities exported from the U.S. It enables the collection of trade statistics and enforces trade policies. The HTS Schedule B contains over 16,000 commodity codes. Each code starts with a Section number, then a Chapter number, then a four-digit heading number, and sometimes a subheading number.

Searching the HTS Schedule B for Product Codes

Looking up the right code for your export product is crucial. All shipments need to be declared with Schedule B codes. You can search the HTS Schedule B manually via the official PDF. However, it’s over 500 pages long and not user-friendly. Instead, use the Schedule B Search engine on the International Trade Commission website. Input keywords for your product and you’ll get code options.

Key Sections of the HTS Schedule B

While you can export products from almost any HTS Schedule B section, some key ones include:

Section I – Live Animals and Animal Products: Covers live animals, meat, dairy, leather, wool, and more. (Chapters 1-5)
Section II – Vegetable Products: Includes produce, grains, seeds, lumber, plants, and floristry. (Chapters 6-14)
Section XI – Textiles and Textile Articles: Contains fibers, yarns, fabrics, apparel, and more. (Chapters 50-63)
Section XV – Base Metals and Articles: Covers iron, steel, aluminum, tools, cutlery, and metalware. (Chapters 72-83)
Section XVI – Machinery and Electrical: Ranges from nuclear reactors to batteries and wires. (Chapters 84-85)

HTS Schedule B Compliance Tips

Classifying your items with HTS Schedule B codes is just the beginning. You’ll also need to comply with other export regulations like:

Obtaining an ECCN classification for restricted products
Screening buyers against denied persons lists
Marking shipments properly
Calculating the export value correctly
Filing the right documentation (commercial invoice, packing list, etc.)

Mistakes can lead to severe delays, fines, or worse. Consider getting an export management company to handle compliance. Their expertise reduces risks and saves you time.

The HTS Schedule B facilitates over $2 trillion in U.S. exports annually. Mastering its codes and sections is mandatory for exporting legally. But don’t go it alone. Get help classifying your products and navigating regulations. Compliance is complex but achievable with the right know-how.

Rising Use of HTS Schedule B Codes

U.S. exports classified using HTS Schedule B codes have increased dramatically over the past decade. In 2010, around 13 million Schedule B submissions were filed. By 2020, that number had jumped to over 18 million, reflecting a 40% increase (1). More U.S. companies are utilizing these codes to export a wider range of products abroad. The top Schedule B sections used include machinery, electrical equipment, vehicles, and plastics.

Compliance Issues Persist

Despite growing adoption of HTS Schedule B codes, many compliance mistakes continue to occurs. A 2021 report found 15% of all Schedule B filings contains errors leading to shipment delays or penalties (2). Common issues involves incorrect classification codes, valuation errors, or incomplete paperwork. This demonstrates the need for further education on properly utilizing Schedule B classifications and following export regulations.

Demand for Export Experts

With U.S. companies exporting more goods, demand has risen for experts to manage HTS Schedule B compliance. Job listings for roles like Export Compliance Specialists increased 22% from 2018-2021 according to one analysis (3). Firms are investing more in personnel and services to ensure exports classify and document goods appropriately. Proper HTS Schedule B use is crucial for facilitating global trade.

References:

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

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

https://web.archive.org/web/20081006034321/http://www.usitc.gov/tata/index.htm

https://www.strtrade.com/trade-news/export-compliance-errors-harming-trade

https://www.bls.gov/ooh/business-and-financial/management-analysts.htm

ITC HTS Search Engine

Beginner’s Guide to Export Compliance

Export Documentation Requirements