Finance & Business

Harmonized system classifies goods on the basis of their name, use and material used and assigns a ten digit number also known as the classification number. The tariff schedule is divided into chapters 1 through more than 99 additional sections like various appendices and indexes. There are more than 17,000 ten digit harmonized tariff schedule classification code numbers and each number is unique and does not match with any other number. Each chapter is divided into headings and headings are divided into varying number of hub headings. In the earlier chapters, raw materials and basic components and in the later chapters appear highly processed goods and manufactured articles. Headings are given depending on the topic written below. There is no rigid rule but generally agricultural products appear in chapter number 1 to 24, toys appear in chapter 95, works of art appear in chapter 97 and vehicles, aircraft and vessels appear in chapter 86 to 89.

Coding system

This is an internationally standardized system which classifies traded products by their names and numbers. Formerly known customs co-operation council is now world customs organization is an independent intergovernmental organization which is based in Brussels, Belgium and have more than 170 countries as its member. The harmonized system is a six digit nomenclature and the first four is the heading. The first six digits are referred as the subheadings. Member countries cannot change the four digit numbers, six digit numbers, headings or sub headings as without them this system cannot be harmonized.

However, individual countries can change the numbers to eight or ten for custom purposes and export purposes. Now more than 200 countries are the member and they represent 98% of the world trade. They use this as the basis of custom tariffs, collection of international trades, rules of origin, collection of internal taxes, trade negotiations, transport tariffs, transport statistics, monitoring of controlled goods and areas of customs control, custom procedure, risk assessment, information technology and compliances.

United States international trade commission

This is an independent, non partisan, quasi judicial, federal agency which expertise in legislative and executive branches. Established in 1916 its mission is to administer U.S. trade remedy laws within its mandate in a fair and objective manner. It provides the president, USTR and congress with quality analysis, information, and support on matters of tariffs, international trade and competitiveness. It maintains the harmonized tariff schedule of the United States. The five operations of ITC is to import injury investigation, intellectual property based import investigations, research program, trade information services and trade policy support.