HTS Codes and HS Codes.
One can say that the HTS code is a harmonized tariff schedule developed by the World Customs Organization and are codes which are used to define and classify imported and exported goods. The the basis used by the Harmonized Tariff Schedule to classify goods is according to the name, use, materials used for its construction and then a ten digit classification code number is assigned to the good. Harmonized Tariff Schedule codes are specific to the United States and are administered by the United States International Trade Commission. Harmonized Tariff Schedule codes classifications is very important since commodity duties are based upon them. A Harmonized Tariff Schedule code is very similar to the HS codes for the first six digits but then the last four digits differ. Harmonized Tariff Schedule Codes differ from both HS codes and schedule B codes.
A Harmonized System code or an HS code is a six-digit standard for classifying globally traded products. The six digit standard is known as the subheading. HS codes are recognized globally and are used by customs authorities all over the world for identification of tax and duty rates for specific types of products. Harmonized system codes are administered by the World Customs Organisation and are recognized in the majority of world trade. HS codes are universal classification tools recognized by many governments.Harmonized system codes are universal classification methods which are recognized by many governments. In order to further distinguish the products to different categories governments around the world may put additional numbers to the HS codes. These additional numbers are different for different countries. Harmonized System codes are used for the reference of commercial invoices and export and import documents.
The HS is organized into sections which are then subdivided into chapters which are then subdivided to headings and subheadings. The section and chapter parts show broad categories while the headings and subheadings further describe the commodities to narrower categories. Technological complexity is used to categorize commodities in the sections and chapters. Technological complex goods come later in the section while natural goods come in the early sections. Vegetable products and animal products, for example, come in the earlier sections while machinery are described in later sections. For the chapters, which is also seen in sections commodities are arranged according to their degree of manufacture.
Schedule b code is a ten digit subset of HTS codes for American exporters. They are used by the US government for statistical purposes to monitor their export. These codes are usually maintained by the United States Census Bureau. As compared to Harmonized Tariff Schedule codes, classification of products under schedule b codes is much faster and much easier.