harmonized system by ree russell us commercial service

80
Harmonized System By Ree Russell US Commercial Service

Upload: norman-keeble

Post on 16-Dec-2015

213 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: Harmonized System By Ree Russell US Commercial Service

Harmonized SystemBy

Ree Russell

US Commercial Service

Page 2: Harmonized System By Ree Russell US Commercial Service

What is the HS number?

• It’s like a Social Security Number, uniquely explains your product. Helps others who are not familiar with your product.

• HS is a Product Classification.

• A Harmonized System is used because Customs officials worldwide don’t speak the same language.

• With everyone using the same “songbook,” we can watch the flow of goods in and out of countries.

Page 3: Harmonized System By Ree Russell US Commercial Service

Classifying your Product

Classify your good on WHAT IT IS, not on its end use, nor its destination (like Mexico or Malaysia.)•Example: A bolt by itself may be a part of a machine, but it is first and foremost a bolt, and it should be classified as such.•Example: Grass seed and fertilizer mix. Classify the mixture as being primarily grass seed, if it is.

Page 4: Harmonized System By Ree Russell US Commercial Service

HHarmonized SystemSystem• The World HS number is 6 digits The World HS number is 6 digits

longlong

• US schedule B number is 10 digits US schedule B number is 10 digits longlong

• The whole world only recognizes the The whole world only recognizes the first 6 digits (everybody has the first 6 digits (everybody has the same songbook) same songbook)

THE MORE NUMBERS,THE MORE NUMBERS,

THE MORE DESCRIPTIVETHE MORE DESCRIPTIVE

Page 5: Harmonized System By Ree Russell US Commercial Service

HS Sections are usually arranged in order of degree of manufacture

• Section 1 Raw material, a cow

• Section 2 Semi manufactured, such as rawhide

• Section 3 Finished product, like a handbag or leather

shoes

Page 6: Harmonized System By Ree Russell US Commercial Service

What is the HS number?What is the HS number?• Chapter: 82 • Tools, Implements, Cutlery,

Spoons and Forks, of Base Metal

• Heading: 8208 Knives and cutting blades

• Subheadings: 820810 for Metalworking

• 820820 for Woodworking

820830 for Food Industry Machines

• 820840 for Agricultural, Forestry Machines: includes a LAWNMOWER BLADE)

• The world recognizes the first six digits.

• Notice the US does not further define this particular Lawnmower Blade,as the US last four 4 digits are zeroes.

• US Schedule B Number:

• 8208400000

Page 7: Harmonized System By Ree Russell US Commercial Service

Where to find the HS code:Where to find the HS code:The Harmonized Tariff Schedule of the US is online, but can be

purchased at the government bookstore:

U.S. Department of Commerce Schedule B Classification of Exports

CALL your US Commercial Service/Export Assistance Center

704 333 4886 –or- our “sister” agency the U.S. Census Bureau, Foreign: Trade Division.

For “Assistance with Classifying Products” OR “Finding a Schedule B Number,” call any of the phone numbers below: (an upgrade from “Durable Goods,” Non-Durable Goods, or “Don’t Know”)

• (301) 763-3259; (301) 763-3484; (301) 763-3047

Census On-line: www.census.gov/trade (NEW! eff. Mar 8, 2010)

- choose Schedule B Search Engine from tool bar- or select Search and type in a key word(s) - Remember: the US-specific number Schedule B is 10 digits long; the

first 6 digits is a world recognized HS number

Page 8: Harmonized System By Ree Russell US Commercial Service
Page 9: Harmonized System By Ree Russell US Commercial Service
Page 10: Harmonized System By Ree Russell US Commercial Service
Page 11: Harmonized System By Ree Russell US Commercial Service
Page 12: Harmonized System By Ree Russell US Commercial Service
Page 13: Harmonized System By Ree Russell US Commercial Service

The Classification Challenge

• Let’s look for classifying a Generator

Suggested because of the market potential for countries that are logistically close to North Carolina exporters!

And the product is in Demand in the Caribbean, CAFTA countries, and African countries! Thank you, Electricity!

Page 14: Harmonized System By Ree Russell US Commercial Service
Page 15: Harmonized System By Ree Russell US Commercial Service
Page 16: Harmonized System By Ree Russell US Commercial Service
Page 17: Harmonized System By Ree Russell US Commercial Service
Page 18: Harmonized System By Ree Russell US Commercial Service
Page 19: Harmonized System By Ree Russell US Commercial Service

Select 2 Numbers At A Time

Find your Chapter:

Chapter 1 (Live Animals) to

Chapter 98 (Special Classifications)

Chapter 85 is Electrical Machinery and Equipment and Parts Thereof

Page 20: Harmonized System By Ree Russell US Commercial Service

Select the Chapter Heading

Next 2 numbers is the Chapter Heading.Chapter Heading 8501 is Electric motors

and generators “Look around” or “further” to the 4-digit codes

ONLY in this area:8502 - Electric generating sets and rotary

converters8503 - Parts suitable for use solely or

principally with Machines in 8501 or 85028504 - Transformers

Page 21: Harmonized System By Ree Russell US Commercial Service

Proceed to Add Another 2 numbers8501.10 - Motors with a certain wattage output

8501.21 – “Universal” AC/DC Motors

8501.31 – “Other” DC Motors and DC Generators not exceeding 750 W

8501.32 - “Other” DC Motors and DC Generators of output 750 W but not exceeding 75 kW

Page 22: Harmonized System By Ree Russell US Commercial Service

Stay on Track by just Adding 2 numbers at a time.

8501.33 - Generators exceeding 75 kW

(which is 100 hp) but not exceeding 375 kW

8501.34 - Generators exceeding 375 kW

8501.40 - “Other” AC Motors

Page 23: Harmonized System By Ree Russell US Commercial Service

If you see .0000 at the end, try to focus on the 5th and 6th

digits only

HS Code 8501.32 refers to DC Generators of an output of 750 W but not exceeding 75 kW – just like the Generator in the Lowe’s catalog page (see handout)

Page 24: Harmonized System By Ree Russell US Commercial Service

Final 7th, 8th, 9th, 10th #s

• Represent the HS Statistical Subdivisions

• Full 10 digits (sometimes these last four “Final” numbers are just “0”s!

• The Statistics can be very Specific –

• or still rather Vague!

Page 25: Harmonized System By Ree Russell US Commercial Service

•So….

•We have a “medium output” Generator – (a full 10 digits and even more descriptive) =

•8501.32.6000 -- the U.S’s Schedule B!

HS + 4 = 10 digit Sched B

Page 26: Harmonized System By Ree Russell US Commercial Service
Page 27: Harmonized System By Ree Russell US Commercial Service
Page 28: Harmonized System By Ree Russell US Commercial Service
Page 29: Harmonized System By Ree Russell US Commercial Service
Page 30: Harmonized System By Ree Russell US Commercial Service
Page 31: Harmonized System By Ree Russell US Commercial Service
Page 32: Harmonized System By Ree Russell US Commercial Service
Page 33: Harmonized System By Ree Russell US Commercial Service
Page 34: Harmonized System By Ree Russell US Commercial Service
Page 35: Harmonized System By Ree Russell US Commercial Service
Page 36: Harmonized System By Ree Russell US Commercial Service
Page 37: Harmonized System By Ree Russell US Commercial Service
Page 38: Harmonized System By Ree Russell US Commercial Service
Page 39: Harmonized System By Ree Russell US Commercial Service
Page 40: Harmonized System By Ree Russell US Commercial Service
Page 41: Harmonized System By Ree Russell US Commercial Service
Page 42: Harmonized System By Ree Russell US Commercial Service
Page 43: Harmonized System By Ree Russell US Commercial Service

Other Classification Challenges

• The same process for Lawnmower Blades and Generators is applied for additional Audience Requests of EU 201 Class #2 (last week):

• Forklifts• Hardwood Living Room Furniture• Scrap Metal, ferrous and non-ferrous• Plywood• Motor Fuel Additive

Page 44: Harmonized System By Ree Russell US Commercial Service

If you’re still awake… GRI Explanatory Notes

• Found at the US Customs website, the Explanatory Notes go into greater detail concerning General Rules of Interpretation.

– Go to www.customs.gov

– Select Trade

– On the right hand side, select Harmonized Tariff Schedule of the United States

– On right, select Current HTSA Edition by chapter

– Select General Notes, General Rules of Interpretation, General Statistical Notes

– Click General Rules of Interpretation

– Scroll through to your product area

Page 45: Harmonized System By Ree Russell US Commercial Service

General Rules of Interpretation

• Found in the beginning of the Harmonized Tariff Schedule, GRIs lay the ground work for Product Classification overall, including systems, sets, mixtures and composites, repetitive uses, etc.

• If in doubt, call us: your Charlotte US Commercial Service (704) 333-4886. We interface w/our “sister” Federal agencies like US Customs (now part of US Customs & Border Protection - CBP) on your behalf.

Page 46: Harmonized System By Ree Russell US Commercial Service
Page 47: Harmonized System By Ree Russell US Commercial Service
Page 48: Harmonized System By Ree Russell US Commercial Service
Page 49: Harmonized System By Ree Russell US Commercial Service
Page 50: Harmonized System By Ree Russell US Commercial Service
Page 51: Harmonized System By Ree Russell US Commercial Service
Page 52: Harmonized System By Ree Russell US Commercial Service
Page 53: Harmonized System By Ree Russell US Commercial Service

Containers and Cases General Rules of Interpretation

• If a container is suitable for repetitive use, it must be classified on its own.

• Example: If you are exporting propane in a tank to Canada, you actually have to classify the propane in its own classification and the tank in its classification, because the tank itself is reusable in Canada.

Page 54: Harmonized System By Ree Russell US Commercial Service

Containers and CasesGeneral Rules of Interpretation

• Full cartons of eggs are classified under eggs, 040700. Without the eggs, the carton is made of paperboard, 482370.

• A can of Coke falls under beverage, 220210.

• A violin case without the violin is HS 4202xx, but if shipped with the violin inside, it is HS 920210, a stringed musical instrument.

Page 55: Harmonized System By Ree Russell US Commercial Service

General Rules of Interpretation

GRIs form part of the Customs Tariff legislation and have been designed to

ensure uniformity in classification decisions

• GRIs are essential for classifying.

Page 56: Harmonized System By Ree Russell US Commercial Service

NOW GET READY FOR THE FUN PART!

ANSWERING THE QUESTION:WHAT ARE MY TOP 10

MARKETS?

Page 57: Harmonized System By Ree Russell US Commercial Service

Harmonized System

HS numbers are “drivers” of the import duties that foreign importers pay for your product.

Foreign Customs authorities determine what your product is by the numerical product code – the Ninja Turtle!

HS numbers also determine US export statistics – you can watch product flows in and out of countries. CAN BE great for Marketing Managers, but not always!

Page 58: Harmonized System By Ree Russell US Commercial Service

Determining AND Using

I look forward to helping YOU to

DETERMINE and to USE the HS number (s)

or the Schedule B number (s)

These Numbers are for myriad Export Docs uses and -- when the number (or related number) is specific -- to help you Target Markets and/or determine your MARKET SHARE in those countries!

Page 59: Harmonized System By Ree Russell US Commercial Service

Finding Export Statistics

• After determining your HS code, the US Department of Commerce/US Commercial Service/Charlotte Export Assistance Center (me!)* can help you tap into the export statistics by country market. Helps to determine “Top Ten” Markets for your product! WWW.USATRADEONELINE.GOV

• • *or my Charlotte co-workers and intern

Page 60: Harmonized System By Ree Russell US Commercial Service

Determining AND USING

THE FOLLOWING ARE CURRENT AND REAL LIFE EXAMPLES OF

DETERMINING AND USING YOUR HS CODES TO TARGET YOUR TOP 10 MARKETS

and/or

DETERMINE YOUR MARKET SHARE in those countries!

Page 61: Harmonized System By Ree Russell US Commercial Service
Page 62: Harmonized System By Ree Russell US Commercial Service
Page 63: Harmonized System By Ree Russell US Commercial Service
Page 64: Harmonized System By Ree Russell US Commercial Service
Page 65: Harmonized System By Ree Russell US Commercial Service

So…Top 10 markets for

• Coniferous (Pine) flooring under

• Schedule B Code 4409102000 (HS is 6 digits 440910)

• Are:

• Mexico, China, Canada, UK, Sweden, Russia, BERMUDA (interesting), Czech Republic, Bahamas, UAE. Continuing…

Page 66: Harmonized System By Ree Russell US Commercial Service
Page 67: Harmonized System By Ree Russell US Commercial Service
Page 68: Harmonized System By Ree Russell US Commercial Service
Page 69: Harmonized System By Ree Russell US Commercial Service
Page 70: Harmonized System By Ree Russell US Commercial Service
Page 71: Harmonized System By Ree Russell US Commercial Service

“Current” Top 10 Markets for:• Electric DC Generators in the Lowe’s Catalog

(>750 W but <75 KW)

• HS 850132; Schedule B 8501326000 are:

• Canada, UK, Trinidad & Tobago, Venezuela, Germany, Costa Rica

• Mexico, Panama, Dominican Republic, Guatemala

Page 72: Harmonized System By Ree Russell US Commercial Service

“Current” Top 10 Markets for:• Chairs, household, of wood, Upholstered:

• HS 940161; Schedule B 9401613000

• Canada, Mexico, Saudi Arabia, Taiwan, UK, Macao, Israel, Germany, Kuwait, UAE

• Seats with Wooden Frames, Upholstered, NESOI (Couches and other seats)

• HS 940161; Schedule B 9401616000

• Canada, Mexico, Saudi Arabia, Venezuela, UAE, Kuwait, Chile, Israel, Honduras, China

Page 73: Harmonized System By Ree Russell US Commercial Service

“Current” Top 10 Markets for:• Fork Lifts (all three types):

• HS 872710 Fork Lift Trucks, self-propelled, electric powered, operator riding or walking;

• HS 842720 Fork Lift Trucks, self-propelled, gasoline powered, operator riding or walking

• HS 842790 Fork Lift Trucks, NESOI (not elsewhere specified or indicated

• Top 10 markets for 8427 (note: there are no further 6-digit codes beyond the above):

Page 74: Harmonized System By Ree Russell US Commercial Service

“Current” Top 10 Markets for:• FORKLIFT TRUCKS

• HS 8427 ARE:

• Canada, Mexico, Brazil, Australia, Colombia, Singapore, Netherlands,Belgium, Chile, Venezuela

Page 75: Harmonized System By Ree Russell US Commercial Service

“Current” Top 10 Markets for:• HS 720410-50 Scrap, ferrous are:

• China, Taiwan, S. Korea, India, Canada, Turkey, Mexico, Finland, Hong Kong, Egypt

Page 76: Harmonized System By Ree Russell US Commercial Service

“Current” Top 10 Markets for:• HS 740400 Scrap, non-ferrous copper scrap

are:

• China, Canada, Hong Kong, S. Korea, Japan, Germany, Belgium, Spain, Greece, Mexico

Page 77: Harmonized System By Ree Russell US Commercial Service

“Current” Top 10 Markets for:• HS 2701011 Light Oils & Preparations (non-

crude) from Petro & Bitum are:

• Mexico, Brazil, Canada, Venezuela, Ecuador, Chile, Japan, Netherlands Antilles, Costa Rica, Guatemala

Page 78: Harmonized System By Ree Russell US Commercial Service

“Current” Top 10 Markets for:• HS 4412 Plywood are:

• Canada, Mexico, Australia, Germany, India, Grenada, Belgium, Dominican Republic, Bahamas

Page 79: Harmonized System By Ree Russell US Commercial Service

HOMEWORK

EVERYONE GO TO

www.census.gov/trade

and determine your HS Code –

I will pull your one product’s HS-based

current US export statistics to know your

Top 10 target markets or market share

(where possible)

Page 80: Harmonized System By Ree Russell US Commercial Service

Make $ … then let us know about yourEXPORT SUCCESS

Thank You! - Ree Russell