Definitions and Classifications

The first six digits of Schedule B and HTS numbers are the same because the United States, as well most global training partners, are a member of the global harmonized system (HS) system of nomenclature promulgated by the World Customs Organization (WCO). However, at the 8 – and 10 – digit statistical reporting number, U.S. import and U.S. export classifications schemas differ. In fact, there are more 10-digit HTS statistical reporting numbers than there are 10-digit Schedule B statistical reporting numbers. Given there are more import numbers than export numbers, multiple HTS 10-digit statistical numbers often correspond to one or more Schedule B 10-digit statistical reporting number. HTS numbers are more detailed as they are used by Customs and Border Protection (“CBP”) to monitor and record U.S. imports as well as to apply duties. For more information, please visit https://www.census.gov/newsroom/blogs/global-reach/2018/07/exporting-with-import-class-numbers.html.

For import statistics, the countries in DataWeb are the “Country of origin,” as reported to CBP. The country of origin does not change for a product that is processed in a third country and/or shipped through a third country. The country of origin is a specific legal reporting requirement. The rules of origin requirements differ based on where the good was manufactured and on the product being reported. For example, paper that has been produced in Germany but cut to size in France could still be reported as country of origin Germany if that is what the country-of-origin reporting requirements are for that product. 

For export statistics, the countries in DataWeb are the country of ultimate destination where the goods will be consumed, further processed or manufactured, known at the time of exportation by the shipper. For example, if an exporter is transporting goods from the United States via truck to Guatemala, the country in export statistics will be identified as Guatemala even though the trucker first entered Mexico, and even if the trucker leaves the goods in Mexico for another carrier to complete the shipment down to Guatemala. 

Product classification begins with finding the correct classification for your product in the Harmonized Tariff Schedule of the United States (HTS or HTSUS) maintained by the USITC. The HTS is accessible at https://hts.usitc.gov/. If you are new to using the HTS or want a refresher, the USITC developed an online tutorial to assist users in understanding how to use the HTS that you may find helpful: https://learning.usitc.gov/hts-guide/index.html. The HTS is maintained by the Office of Tariff Affairs and Trade Agreements https://www.usitc.gov/offices/tata.

Duty rates are listed for most U.S. trading partners under the column 1 “General” (normal trade relations, previously referred to as most favored nation, rate), highlighted in red below. Some U.S. trading partners may have access to lower or eliminated duty rates based on trade preference programs (e.g., GSP, AGOA) or free trade agreements (e.g., USMCA, Korea-US FTA), those are shown under column 1 “Special”. A handful of countries are not eligible for normal trade relations rates of duties (currently North Korea, Cuba, Russia, and Belarus) and imports from these countries would be subject to the column 2 rates of duty. Additional duties or import restraints (quotas) may also be applicable depending on the product / country of origin based on other statutory authorities (e.g., 232 aluminum and steel tariffs, 301 China specific duties), all of which are laid out in Chapter 99 of the HTSUS. 

It should be noted, however, that the USITC is not authorized to provide legally binding interpretation on how to classify goods according to the Harmonized Tariff Schedule of the United States and, thus, is unable to confirm to the public what the final duty rates for their imports will be. That authority resides with the U.S. Customs and Border Protection (CBP) agency of the Department of Homeland Security.  Only CBP can issue legally binding rulings or advice on the tariff classification of imports. You can submit an inquiry to CBP at: https://www.cbp.gov/contact.

Schedule B is used to classify products for U.S. exports and is administered by the U.S. Census Bureau. You can search for schedule B numbers at https://www.census.gov/foreign-trade/schedules/b/index.html. For U.S. imports, the Harmonized Tariff System (HTS) is used, and it is administered by the U.S. International Trade Commission (USITC). You can search for HTS numbers at https://hts.usitc.gov/.

On the query design page, there are blue question marks that open dialogue boxes with definitions. On Step 2, there is a question mark near “Data to Report: Summable Measure”. This question mark opens a dialogue box with definitions for the summable variables such as customs value and landed duty paid value. Definitions for the summable values and quantities can also be found on Census’ website at https://www.census.gov/foreign-trade/reference/definitions/index.html .

On the query design page, there are blue question marks that open dialogue boxes with definitions. On Step 1, there is a question mark near “Trade Flow”. This question mark opens a dialogue box with definitions for the different trade flows such as domestic exports and imports for consumption.

The first unit of quantity refers to the first (if any) statistical reporting unit specified in the HTSUS (for imports) or Schedule B (for exports) applicable to the specific product classification selected. Note that not all product classification codes (10-digit HTS statistical reporting numbers for imports, or 10-digit schedule B numbers for exports) require importers or exporters to report a quantity measure.

The second unit of quantity refers to the second (if any) statistical reporting unit specified in the HTSUS or Schedule B applicable to the specific product classification selected. Note that most product classification codes do not require importers or exporters to report a second quantity measure.

Information as to whether importers must report a “first unit of quantity” and/or a “second unit of quantity” for any given product being imported is maintained in the HTSUS. In the example below all 10-digit statistical reporting numbers listed have a first unit of quantity of “No”, which represents number or units, and certain 10-digit statistical reporting numbers listed below (for example 8541.42.0010 is the first) also have a second unit of quantity of “W”, which represents watts. When the HTSUS show one or two “unit of quantity” next to a statistical reporting number, importers are required to submit data on those aggregated quantities (in addition to value) for its imports within their entry summary paperwork.