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The United States uses a 10-digit code to classify products destined for export, known as the Annex B number, the first six digits being the HS number. For each physical product, from paper clips to airplanes, there is a number according to Appendix B. List B is administered by the Foreign Trade Division of the United States Census Bureau. HTS codes are used to classify imported products, while Schedule B codes do the same, but for items exported from the United States. Both codes are used for tariff classification and classification of goods. Category: Textiles and goods (62) Subcategory: T-shirts, underwear and other vests (11) Material: Cotton (42) HS code: 621142 HTS codes (harmonized tariff plan) are not used for exports. HTS codes are used to import products, while export codes, also known as Annex B codes, are used to export products. Schedule B codes determine tariff classification and are required to complete trade documents to export goods from the United States. A 10-digit international code that categorizes each exported good. An HTS code is a unique 10-digit number that determines the customs tax or duties levied on items imported into the United States from other countries. HTS codes are administered by the U.S. International Trade Commission, but enforced by The Department of Homeland Security`s Customs and Border Protection (CBP). The first two digits of a Code in Annex B identify the chapter to which the marketed product belongs.

In this case, 09 indicates that the chapter under which coffee can be found is “Coffee, tea, mate and spices”, which can be found in the section on herbal products. In addition, HTS codes are used by the United States. International Trade Commission (USITC), while Schedule B codes are assigned by the United States Census Bureau. Appendix B contains three pieces of information you need: the number, the description, and the unit of measure (or unit of measure). Not only is it important to understand when to use the six- or 10-digit classification on your export documents, but it is also important to identify the correct classification of your goods. Since the HS number is the same as the first six digits of the Appendix B code, you do not need to search for the two separately. The first six digits of the HS are called the international level and are uniform for all countries that accept the Harmonized System. Each country has the power to supplement the sh system to create 10-digit codes based on their taxes and individual needs. (Some countries use eight-digit codes, others use 12-digit codes.

For our example, let`s take a 10-digit code.) All figures beyond these six are country-specific and may be different for each country. In the United States, HTS codes are called HTSUS codes. These 10-digit codes are issued by the International Trade Commission (ITC), which provides codes for thousands of different raw materials that are unique to the United States. Overall, it doesn`t hurt to add the code to the U.S. export invoice if necessary, but it should only be in the first 6 digits and it should be correct and accepted by the buyer. If the customer doesn`t ask for it, I wouldn`t recommend adding. Many countries allow the clearance of goods without the HS code on the invoice, as the registered importer is responsible for providing their broker with the correct HS code for customs importation. As long as the invoice is correct and the importer knows the item he is buying, he should be able to determine the HS code in cooperation with his broker. The following two digits form the first subheading of the product, in this case the identification of our coffee as non-decaffeinated. Now that you have six digits, you have the full HS number of the product, which means that code 0901.21 is generally recognized worldwide as roasted and non-decaffeinated coffee. There are two main reasons why an export code or Annex B code should be used: Let`s look at the benefits of adding the right HS code to the export invoice: Like HTS codes, Annex B codes are divided into two-digit sections that form chapters, headings and subtitles. The more subheadings included, the more specific the classification becomes.

Let`s take a look at our coffee example above and break down how to reach each section. The world of international e-commerce and imports can seem complicated, not least because of a number of terms and acronyms that make the processes of understanding even more difficult. Before we get into how HTS codes work, let`s define some of the governing bodies and terms you`ll come across when you move into the world of international imports: Let`s take a look at an example: adding the wrong HS code to the invoice due to buyer pressure (for the sole reason of reducing the tariff on its side) is nothing, what you want to participate in. For example, if the customs code on the U.S. export page for reporting purposes is 7511,19,000 and the buyer asks you to include 7112.12.0000 on the invoice, this should be an immediate indicator. Either the classification on the export page is incorrect, or the buyer`s code does not match the product description. If you want to send a pineapple, it cannot be classified as an apple on the destination import page. Common sense should prevail. False declarations on the U.S. export side – especially when a customs declaration is knowingly filed with the false information – are essentially considered fraud. In the case of trading in the United States, both HTSUS codes and Schedule B codes consist of 10 digits and share corresponding HS codes for the corresponding items. However, the next four digits of each number may differ, resulting in two unique codes.

There are actually more HTSUS codes than Appendix B codes, indicating a deeper classification level for HTS codes. The Census Bureau contains a very good (and free!) Appendix B search engine on its website. By entering a description of your product, the search engine will help you identify the right code. Since some of the differences between classifications can be quite technical, it`s important that someone who understands the technical specifications of your products do the research. While the Code in Appendix B and the HTS code of an asset may be identical, Schedule B and HTS are different systems that serve different purposes. As an entrepreneur, you must use HTS codes when importing and Schedule B codes when exporting. Although Shopify does not currently support adding HTS codes to products, the first six digits of an HTS code are equivalent to an HS code and can be entered. While HS codes are important as a trader when importing goods, they are also relevant for goods that you ship to international customers.

Since HS numbers are the same in all countries, you must include the six-digit HS code on all export documents used by both the exporter and importer. This usually includes pro forma and commercial invoices and certificates of origin. If you`re a merchant using Shopify to sell your goods online, the platform supports adding SH codes to the goods you want to ship worldwide to show international customers an estimate of customs duties at checkout. Duties are calculated on the basis of a number of factors, including the declared value and shipping costs of a product, the category of product determined by the HS code, the country of origin or region of origin, the customs duties of the country of destination and the applicable trade agreements. However, the Census Bureau doesn`t care how many cans you export. Based on your Annex B number – 0901.11.0000 – your IED submission must specify the quantity in kilograms. If each of your cans contains one pound of coffee, the quantity to report is 65.3 kilograms. Whether one or two quantities are listed, this AES reporting requirement means that far too many exporters use by default the same unit of measure they use on their invoice, whether or not this is appropriate for their Annex B code. This can lead to an immediate problem delaying the current shipment, or more serious concerns in the future if an audit reveals a trend towards incorrect submissions.

If you`re new to the world of international trade, you`re probably overwhelmed with a lot of new words, phrases, and information to begin with. You may even ask yourself questions like “What is the International Harmonized System?” or “Do I need an HTS code for exports?” As for the need for an HTS code for exports, the answer can be clearly explained. Once you have selected “not decaffeinated”, the tool will open a drop-down menu for two final identifiers: “Certified Organic” or “Other”. The selection of “certified organic” beans indicates that the correct Schedule B code for this product is 0901.21.0010. You can get one on the website of the government of your country. You can also use the online HS code search tools – just enter a detailed description of the goods and you will receive your code. For example, in the same example of importing cinnamon, the HTS code can be found in Chapter 9: Read on to learn more about the main differences between HTS and Appendix B codes, how to use a Schedule B code, and how to search for a Schedule B code for a product. Below is a page from Chapter 9 of Appendix B. If you select Appendix B No.

and the headers, you will see examples of two-, four-, six- and 10-digit numbers.