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Understanding HS Codes and the Schedule B

The Harmonized System (HS) is an industry classification system used for processing export and import documentation of goods. The HS codes are standardized numerical codes for classifying traded products. HS codes are used by customs authorities around the world to identify products when assessing duties and taxes, and for collecting statistics.

Unlike NAICS codes, which are used for industry classification of companies, the HS codes are used for classification of traded products.

The HS code consists of 6-digits. The first two digits indicate the HS Chapter. The second two digits indicate the HS heading. The third two digits indicate the HS subheading. Countries are allowed to add suffixes to the 6-digit numbers and make HS codes 8-digit, or, even in some cases 10-digit.

  • Section: roman number, I to XXI
    • Chapter: 2-digit code, 1 – 98.
      • Heading: 4-digit code
        • Subheading: 6-digit code
          —– Optional extra 2 to 4 digits ———-
          • Sufix: 8-digit code
            • Shedule B number: 10-digit code

For example, HS Code 87032319 is for “Motor cars and other motor vehicles principally designed for the transport of fewer than 10 persons, incl. station wagons and racing cars, with only spark-ignition internal combustion reciprocating piston engine, of a cylinder capacity over 1.500 cm³ but less or equal to 3.000 cm³, new.” The HS Code includes Chapter 87, (Motor cars and other motor vehicles), then Heading 03 (for the transport of fewer than 10 persons, incl. station wagons and racing cars), Subheading 23 (with only spark-ignition internal combustion reciprocating piston engine of a cylinder capacity over 1.500 cm³ but less or equal to 3.000 cm³), and finally Suffix 19 (New).

Schedule B is the industry classification system for products used in the United States, i.e., the codes used to classify exported products are called “Schedule B” numbers in the US. Schedule B numbers, not HS numbers, must be provided in the Shippers’ Export Declaration (SED).

Schedule B number includes 10 digits. The first 6 digits of the Schedule B number are the same as the corresponding international HS code. The last 4 digits are statistical classification codes used for collecting data by government agencies. The schedule B system is administered by The U.S. Census Bureau.

HS codes and Schedule B numbers are included in 22 Sections and divided into 98 Chapters.

The below video by U.S. Trade Administration is a good guide on how to navigate through HS codes and Schedule B numbers.
 

HS Codes - Apple Fresh

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