Harmonized Tariff Schedule of the United States (HTSUS)

EXPLANATION AND USE EXERCISE

The HTSUS is a very thick reference and guide to proper classification of merchandise upon entry into the United States. All articles subject to customs clearance needs to be properly classified prior to such clearance. The customs service takes great care in the annual preparation and update of this book and expects reasonable care to be used in referencing this book for classification purposes.

Book Format

The HTSUS has many key components to assist you in obtaining proper harmonize classifications. Lets take a look at these components now!

General Rules of Interpretation (GRI)

The GRI is found at the front of the book and is relied upon greatly in the determination of proper classification techniques. Classification itself is not an exact science. In many cases, an entry writer is asked to interpret the determining factors of what is being imported to properly classify the imported goods. Because different individuals may “interpret” imported items of description and usage in many different ways as to effect the classification, customs uses the GRI as a formal guide of interpretation. Read the GRI carefully and memorize them. It is essential to proper classification to do so.

General Notes

General Notes are located next in the HTSUS to provide ease in the usage of the book as well as provide a definitive explanation and analysis to special tariff treaty programs. It is important to be familiar with these notes to ensure proper classification techniques. Each general note is essential to classification clarity and understanding.

Chapters and Chapter Notes

The HTSUS is formatted in numerical order by chapters. Each chapter deals with a specific class of commodities. Each chapter is preceded by chapter notes, which provide a more defined level of understanding on individual chapters, for classification purposes. Inclusions to and exclusions from a chapter are found here. Key definitions to terms and descriptions are also outlined in the chapter notes. Prior to selecting any HTSUS ten-digit number it is essential to read the related chapter note for any required reference to the imported or classifiable items.

Alphabetical Index

The alphabetical index is located in the back of the book and is the guide to quickly and correctly access the proper chapter for classification purposes. The index contains commodity descriptions of everything that you could possible think of. To classify an item, look in this index to reference the description. The index provides at least the first two letters of the ten-digit HTSUS number. In most cases the first four digits are provided.

TECHNIQUES OF USAGE OF THE HTSUS

The most difficult task in proper HTSUS classification is to determine what it is that you are classifying. In that determination, one must consider the GRI for interpretation. Once you have decided what you are classifying, reference the alphabetical index for a “hint or clue” (the first four digits of the HTSUS). This will direct you to the numerical chapter in the HTSUS where the goods are described. Next, reference the chapter notes to verify any exclusions or inclusions to the chapter. The HTSTS number is a ten-digit number. You have not properly classified something until you have reached a tenth digit in its classification.

HTSUS PAGE OUTLINE/DESCRIPTION

Heading and subheading = the first eight digits of the HTSUS number. Statistical suffix = the last two digits in the HTSUS number.

Article description = A detailed description of articles for classification purposes.

Rates of duty

General column = rate of duty originating in a most-favored nation (see the general notes for a detailed analysis).

Special column = rate of duty originating in a county under a special tariff treaty program.

Column 2 = rate of duty on goods originating in an unfavored nation (see the General notes for detailed analysis).