Tariff WatchThe Harmonized Tariff Schedule of the United States classifies every imported article under a numeric code. The code is read in pairs, and each pair narrows what came before it. Duty is assessed at ten digits.
The levels
Two digits to ten, each narrowing the last.
- Chapter, 2 digits. The broadest grouping, 01 to 99. Chapter 72 is iron and steel; chapter 87 is vehicles. Chapters 1 to 97 carry the ordinary rates, chapter 98 special classification provisions, chapter 99 temporary modifications.
- Heading, 4 digits. A group of articles within the chapter. Heading 8471 is automatic data processing machines. A heading is not a classification: the rates beneath it can differ.
- Subheading, 6 digits. Internationally harmonized to this level. The first six digits of a code mean the same thing in every country using the Harmonized System.
- Rate line, 8 digits. United States detail. This is the level at which the Column 1 rate is set.
- Statistical line, 10 digits. The reporting suffix. Duty is assessed here, and this is the code an entry carries.
Classification
Governed by rules, not by resemblance.
Classification is governed by the General Rules of Interpretation, which appear at the front of the schedule, and by the section and chapter notes, which are legal text rather than commentary. The rules are applied in order: the terms of the headings and any relative section or chapter notes govern first, and the later rules apply only where the earlier ones do not resolve the question.
Classification is the importer’s responsibility, exercised with reasonable care. A binding ruling on the classification of a particular article can be requested from Customs and Border Protection.
Revisions
The schedule changes several times a year.
The United States International Trade Commission publishes the schedule and revises it as proclamations and notices amend it. Revisions carry a number within the year, and each states the date it takes effect. A rate is only meaningful against the revision it was read from and the date it was resolved for.
Related
Elsewhere on this site.