The Harmonized Tariff Schedule of the United States (HTSUS) is the primary resource for determining tariff classifications for goods imported into the United States (and can also be used in place of Schedule B for classifying goods exported from the United States).[1] This two volume U.S. government publication is updated periodically by the United States International Trade Commission and is available in various electronic formats.
The Harmonized Tariff Schedule is based on the international Harmonized Commodity Coding and Classification System (Harmonized System), which has been established by the World Customs Organization. Virtually all countries base their tariff schedules on the Harmonized System, making it easier to conduct international trade.
The U.S. Harmonized Tariff Schedule, like Harmonized System tariff schedules generally, classifies a good (assigns it a ten-digit tariff classification number) based on such things as its name, use, and/or the material used in its construction. The tariff schedule is divided into Chapters 1 through 99 plus numerous additional sections such as various appendices and indexes. There are over 17,000 unique ten-digit HTS classification code numbers. Chapters are divided into a varying number of headings, and headings are divided into a varying number of subheadings. Raw materials or basic substances often appear in the early chapters and in earlier headings within a chapter, where highly processed goods and manufactured articles often appear in later chapters and headings. Agricultural products are generally provided for in chapters 1-24, for example, whereas vehicles, aircraft and vessels appear in chapters 86-89. There is no hard and fast rule, however. Toys, for example, appear in Chapter 95 and works of art are found in Chapter 97.
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The HTS was enacted by subtitle B of title I of the Omnibus Trade and Competitiveness Act of 1988, and became effective on January 1, 1989. The HTS replaced the Tariff Schedules of the United States (TSUS). The United States had not adopted the previous international nomenclatures, but as a party to the convention creating the Customs Cooperation Council (predecessor to the World Customs Organization) and the perceived benefits of the new nomenclature, the United States played an active role in developing the HTS. Section 608(c) of the Trade Act of 1974 directed the United States International Trade Commission to investigate principles and concepts to be implemented in the HTS. The ITC, as well as the U.S. Customs Service (predecessor to Customs and Border Protection), and other agencies helped develop the HTS throughout the 1970s. In 1981, President Ronald Reagan requested that the ITC prepare a draft conversion of the U.S. tariff into the HTS nomenclature. This conversion was issued in June 1983, and after lengthy review from interested parties, replaced the TSUS on August 23, 1988 with the enactment of the Omnibus Trade and Competitiveness Act.