A Brief Description of the The Harmonized System
The United States has joined the rest of the world in adopting a new import
and export commodity classification system. The new import and export
schedules are based on the international Harmonized Commodity Description
and Coding System (HS).
Harmonized Commodity Description and Coding System - HS. The international
Harmonized Commodity and Coding System (HS) is a system for classifying
goods in international trade which has been developed under the auspices of
the Customs Cooperation Council (CCC), located in Brussels. The CCC is an
international organization consisting of representatives of about 150
countries. The United States is represented in the CCC by the U.S. Customs
Service.
The HS is intended to serve as a universally accepted product nomenclature
classification of goods for the administration of customs programs, the
collection of data on exports and imports, the determination of
classification for assessment of freight charges, the collection of
transport statistics for each mode of carrier, and the collection of
statistics on the volume of domestic production and/or shipments.
The Harmonized System, like its predecessor Customs Cooperation Council
Nomenclature (CCCN), and the Brussels Tariff Nomenclature (BTN) systems, is
a commodity classification system in which articles are grouped largely ac-
cording to the nature of the materials of which they are made, as has been
traditional in customs nomenclatures. The HS contains approximately 5000
headings and subheadings covering all articles in trade. These provisions
are organized in 97 chapters arranged in 21 sections which, along with the
interpretive rules and legal notes to the chapters and sections, form the
legal text of the Harmonized System.
The headings and subheadings of the international HS are identified by
number, of which the first two digits represent the heading position in
that chapter, and the second two digits represent the divisions
(subheadings) of the heading. The HS is for the most part a hierarchical
system in the sense that there is nothing classifiable at a given 4-digit
heading level that is not included in the given chapter (2-digit level);
there is nothing classifiable at a given 6-digit subheading that is not
included in the 4-digit heading. The 2-, 4-, 5-, and 6-digit levels of the
HS all have meaning, from a logical and analytical statistical standpoint.
However, the 1- and 3-digit levels represent only a combination of numbers
and categories; these combinations may often not represent categories of
logical or analytical interest. The HS 6-digit coding system can be
adopted as is by individual countries, or can be expanded by adding digits
for national purposes. The Customs Cooperation Council Nomenclature (CCCN)
which will be superseded by the HS consists of approximately 1000 commodity
classi-fications. The file Section6.DBF on the CD-ROM lists the complete
Harmonized Commodity Description and Coding System.
A concordance of the Harmonized System can be found HERE.
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