Harmonized Tariff Schedules.
One can say that the HTS code is a harmonized tariff schedule developed by the World Customs Organization and are codes which are used to define and classify imported and exported goods. The Harmonized Tariff Schedule uses the names, uses, and materials a good is produced from to classify goods after which a ten-digit classification code number is assigned to the good. Since the Harmonized Tariff Schedule codes are specific only to the United States, the United States International Trade Commission is responsible for administering them. Commodity duties are based on Harmonized Tariff Schedule codes classifications and as such Harmonized Tariff Schedule codes are very important. The first, six digits of a Harmonized Tariff Schedule code are very similar to an HS code but the last four digits are differing. Neither HS codes nor schedule B codes are similar to the HS codes.
A Harmonized System code is a six-digit standard for classifying globally traded products. The six digit standard is known as the subheading. HS codes are recognized globally and are used by customs authorities all over the world for identification of tax and duty rates for specific types of products. They are usually administered by the World Customs Organization and recognized in the majority of world trade.HS codes are usually administered by the World Customs Organisation and are recognized in world trade. Many governments recognize HS codes since they are a universal classification method. In order to further distinguish the products to different categories governments around the world may put additional numbers to the HS codes. These numbers may vary from country to country. Harmonized System codes are used for the reference of commercial invoices and export and import documents.
The HS is organized into sections which are then subdivided into chapters which are then subdivided to headings and subheadings. The section and chapters parts are used for broad categorization while the headings and subheadings are used for describing narrower categories. Technological complexity is used to categorize commodities in the sections and chapters. In the sections natural goods come first while technological complex goods are described in later sections. Machinery comes in later sections while animal products and farm products come in the earlier sections. In the chapters, as also seen in the sections, commodities are arranged according to the degree of their manufacture.
Schedule b code is a ten digit subset of HTS codes for American exporters. The United States uses schedule B codes to monitor their exports by using statistics from schedule B codes. These codes are usually maintained by the United States Census Bureau. By using schedule b codes classification of goods is much faster and much easier as compared to using Harmonized Tariff Schedule codes.