Harmonized Tariff Schedule for the United States
Encyclopedia
The Harmonized Tariff Schedule of the United States (HTSUS) is the primary resource for determining tariff classifications for goods imported into the United States
(and can also be used in place of Schedule B for classifying goods exported from the United States). This two volume U.S. government publication is updated periodically by the United States International Trade Commission
and is available in various electronic formats.
The Harmonized Tariff Schedule is based on the international Harmonized Commodity Coding and Classification System (Harmonized System
), which has been established by the World Customs Organization
. Virtually all countries base their tariff schedules on the Harmonized System, making it easier to conduct international trade.
The U.S. Harmonized Tariff Schedule, like Harmonized System tariff schedules generally, classifies a good (assigns it a ten-digit tariff classification number) based on such things as its name, use, and/or the material used in its construction. The tariff schedule is divided into Chapters 1 through 99 plus numerous additional sections such as various appendices and indexes. There are over 17,000 unique ten-digit HTS classification code numbers. Chapters are divided into a varying number of headings, and headings are divided into a varying number of subheadings. Raw materials or basic substances often appear in the early chapters and in earlier headings within a chapter, where highly processed goods and manufactured articles often appear in later chapters and headings. Agricultural products are generally provided for in chapters 1-24, for example, whereas vehicles, aircraft and vessels appear in chapters 86-89. There is no hard and fast rule, however. Toys, for example, appear in Chapter 95 and works of art are found in Chapter 97.
) and the perceived benefits of the new nomenclature, the United States played an active role in developing the HTS. Section 608(c) of the Trade Act of 1974
directed the United States International Trade Commission to investigate principles and concepts to be implemented in the HTS. The ITC, as well as the U.S. Customs Service
(predecessor to Customs and Border Protection), and other agencies helped develop the HTS throughout the 1970s. In 1981, President Ronald Reagan
requested that the ITC prepare a draft conversion of the U.S. tariff into the HTS nomenclature. This conversion was issued in June 1983, and after lengthy review from interested parties, replaced the TSUS on August 23, 1988 with the enactment of the Omnibus Trade and Competitiveness Act.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
(and can also be used in place of Schedule B for classifying goods exported from the United States). This two volume U.S. government publication is updated periodically by the United States International Trade Commission
United States International Trade Commission
The United States International Trade Commission is an independent, bi-partisan, quasi-judicial, federal agency of the United States that provides trade expertise to both the legislative and executive branches. Further, the agency determines the impact of imports on U.S...
and is available in various electronic formats.
The Harmonized Tariff Schedule is based on the international Harmonized Commodity Coding and Classification System (Harmonized System
Harmonized System
The Harmonized Commodity Description and Coding System of tariff nomenclature is an internationally standardized system of names and numbers for classifying traded products developed and maintained by the World Customs Organization , an independent intergovernmental organization with over 170...
), which has been established by the World Customs Organization
World Customs Organization
The World Customs Organization is an intergovernmental organization headquartered in Brussels, Belgium. With its worldwide membership, the WCO is recognized as the voice of the global customs community...
. Virtually all countries base their tariff schedules on the Harmonized System, making it easier to conduct international trade.
The U.S. Harmonized Tariff Schedule, like Harmonized System tariff schedules generally, classifies a good (assigns it a ten-digit tariff classification number) based on such things as its name, use, and/or the material used in its construction. The tariff schedule is divided into Chapters 1 through 99 plus numerous additional sections such as various appendices and indexes. There are over 17,000 unique ten-digit HTS classification code numbers. Chapters are divided into a varying number of headings, and headings are divided into a varying number of subheadings. Raw materials or basic substances often appear in the early chapters and in earlier headings within a chapter, where highly processed goods and manufactured articles often appear in later chapters and headings. Agricultural products are generally provided for in chapters 1-24, for example, whereas vehicles, aircraft and vessels appear in chapters 86-89. There is no hard and fast rule, however. Toys, for example, appear in Chapter 95 and works of art are found in Chapter 97.
History
The HTS was enacted by subtitle B of title I of the Omnibus Trade and Competitiveness Act of 1988, and became effective on January 1, 1989. The HTS replaced the Tariff Schedules of the United States (TSUS). The United States had not adopted the previous international nomenclatures, but as a party to the convention creating the Customs Cooperation Council (predecessor to the World Customs OrganizationWorld Customs Organization
The World Customs Organization is an intergovernmental organization headquartered in Brussels, Belgium. With its worldwide membership, the WCO is recognized as the voice of the global customs community...
) and the perceived benefits of the new nomenclature, the United States played an active role in developing the HTS. Section 608(c) of the Trade Act of 1974
Trade Act of 1974
The Trade Act of 1974 was passed to help industry in the United States become more competitive or phase workers into other industries or occupations.-Fast track authority:...
directed the United States International Trade Commission to investigate principles and concepts to be implemented in the HTS. The ITC, as well as the U.S. Customs Service
United States Customs Service
Until March 2003, the United States Customs Service was an agency of the U.S. federal government that collected import tariffs and performed other selected border security duties.Before it was rolled into form part of the U.S...
(predecessor to Customs and Border Protection), and other agencies helped develop the HTS throughout the 1970s. In 1981, President Ronald Reagan
Ronald Reagan
Ronald Wilson Reagan was the 40th President of the United States , the 33rd Governor of California and, prior to that, a radio, film and television actor....
requested that the ITC prepare a draft conversion of the U.S. tariff into the HTS nomenclature. This conversion was issued in June 1983, and after lengthy review from interested parties, replaced the TSUS on August 23, 1988 with the enactment of the Omnibus Trade and Competitiveness Act.
See also
- Harmonized Tariff SystemHarmonized SystemThe Harmonized Commodity Description and Coding System of tariff nomenclature is an internationally standardized system of names and numbers for classifying traded products developed and maintained by the World Customs Organization , an independent intergovernmental organization with over 170...
- U.S. Customs and Border ProtectionU.S. Customs and Border ProtectionU.S. Customs and Border Protection is a federal law enforcement agency of the United States Department of Homeland Security charged with regulating and facilitating international trade, collecting import duties, and enforcing U.S. regulations, including trade, customs and immigration. CBP is the...
- United States International Trade CommissionUnited States International Trade CommissionThe United States International Trade Commission is an independent, bi-partisan, quasi-judicial, federal agency of the United States that provides trade expertise to both the legislative and executive branches. Further, the agency determines the impact of imports on U.S...