HTS Codes versus Schedule B Numbers
Article Summary
HTS codes are 10-digit import classification codes used in the U.S. to determine duties and regulations for imported goods.
Schedule B numbers are 10-digit export classification codes used by the U.S. Census Bureau to track and report export statistics.
Both codes share the first six digits, derived from the Harmonized System (HS), but differ in their last four digits and purpose.
HTS codes are required for all U.S. imports to determine applicable duties and ensure compliance with customs regulations.
Schedule B numbers are used for U.S. exports when filing Electronic Export Information (EEI) through the Automated Export System (AES).
Using incorrect codes can lead to shipment delays, fines, and non-compliance penalties.
Do you understand the difference between the Harmonized Tariff Schedule (HTS) and Schedule B? Exporters often use these terms interchangeably. Technically, however, they serve very different purposes.
HTS codes and Schedule B numbers are both comprised of 10-digit numbers. The HTS is another classification system used in the U.S. to identify imported goods based on their material composition, product name, and/or intended function. It is used to determine the rate of duty applied to an imported good. The HTS is administered by the U.S. International Trade Commission.
Schedule B numbers, on the other hand, are used by the U.S. Government to track statistics of exported goods. These statistics are collected and compiled in terms of approximately 8,000 commodity classifications in “Schedule B: Statistical Classification of Domestic and Foreign Commodities Exported from the United States,” which is maintained by the U.S. Census Bureau, Foreign Trade Division.
HTS codes should be included on shipping documents for every import. Schedule B numbers are reported as part of the Electronic Export Information (EEI) in the Automatic Export System (AES). Schedule B numbers need to be filed with EEI when the value of the commodity classified under each individual Schedule B number is over $2,500 or if a validated export license is required to export the commodity.
It’s critical to use the correct HTS codes because the rate of duty applied to imported goods is assessed based on this classification. The failure to use the proper HTS code could lead to costly delays in getting your import shipment cleared through Customs. It is equally important to report the correct Schedule B number for exports because it enables the USG to provide industry with valuable data regarding globally traded goods. Finally, the failure to properly use HTS codes and Schedule B numbers could potentially lead to fines and other penalties.
For more information on HTS codes and Schedule B numbers, visit CTP’s HTS and Schedule B section or download our FAQ.
Key Points
What are HTS codes, and what is their purpose?
HTS codes, or Harmonized Tariff Schedule codes, are 10-digit classification codes used in the United States to identify imported goods. These codes determine the duties, taxes, and regulations applied to imports. The first six digits of an HTS code are based on the globally recognized Harmonized System (HS), while the last four digits are specific to the U.S. HTS codes are maintained by the U.S. International Trade Commission (ITC) and are updated regularly to reflect changes in trade policies and product classifications.
What are Schedule B numbers, and how are they used?
Schedule B numbers are 10-digit classification codes used exclusively for U.S. exports. They are maintained by the U.S. Census Bureau and are primarily used to track and report export statistics. Like HTS codes, the first six digits of a Schedule B number align with the HS code, but the last four digits are unique to the U.S. Schedule B numbers are required when filing Electronic Export Information (EEI) through the Automated Export System (AES) for shipments exceeding $2,500 in value or requiring an export license.
How are HTS codes and Schedule B numbers similar and different?
Similarities:
- Both codes are 10 digits long and share the first six digits, derived from the Harmonized System (HS).
- Both are used to classify goods for trade purposes.
Differences:
- Purpose: HTS codes are used for imports to determine duties and regulations, while Schedule B numbers are used for exports to track trade statistics.
- Governing Body: HTS codes are managed by the U.S. International Trade Commission, whereas Schedule B numbers are overseen by the U.S. Census Bureau.
- Application: HTS codes are required for import documentation, while Schedule B numbers are used in export filings.
When should HTS codes and Schedule B numbers be used?
- HTS Codes: Required for all U.S. imports to classify goods, determine applicable duties, and ensure compliance with customs regulations.
- Schedule B Numbers: Used for U.S. exports when filing EEI through AES, especially for shipments exceeding $2,500 or requiring an export license.
What are the risks of using incorrect HTS codes or Schedule B numbers?
Using incorrect codes can result in:
- Shipment Delays: Customs may hold shipments for clarification.
- Fines and Penalties: Misclassification can lead to financial penalties.
- Non-Compliance: Repeated errors may result in audits or loss of trade privileges.
Accurate classification is critical to avoid these risks and ensure smooth trade operations.
How can businesses ensure accurate classification of goods?
To ensure proper classification:
- Use tools like the U.S. Census Bureau’s Schedule B search engine or the ITC’s HTS search tool.
- Regularly review and update codes to reflect changes in trade regulations.
- Consult with trade compliance experts or use classification software to avoid errors.
- Train employees on the differences between HTS codes and Schedule B numbers and their proper usage.
