Schedule B 2004 - Intro

     The 2002 edition of Schedule B supersedes the previous (1996) edition as 
the official schedule of commodity classifications to be used by shippers in 
reporting export shipments from the United States, and in compiling the official 
statistics on exports of merchandise from the United States.  This edition is 
effective January 2002.  The export commodity classification system presented 
in this Schedule reflects the adoption, in 1989, of the Harmonized Commodity 
Description and Coding System (Harmonized System).


	The correct commodity number shown in the current edition of Schedule B
 must be reported on the Shipper's Export Declaration (SED) form or any 
authorized electronic medium.  A description of the merchandise, in sufficient 
detail to permit the verification of the Schedule B number, must also be 
furnished on the export declaration, as well as other statistical data, in 
accordance with the Foreign Trade Statistics Regulations (15 CFR Part 30).  
Facsimiles of the export declaration forms appear as part of the "Correct Way 
to Fill out the Shipper's Export Declarations", which is reproduced on preceding 
introductory pages of this publication.


ORGANIZATION OF THE SCHEDULE B CLASSIFICATIONS

	Schedule B, based on the Harmonized System (HS), consists of 22 sections
 divided into 97 chapters.  Chapters 1 through 97 correspond with the International 
System of Numbering, with chapter 77 being blank.  An additional chapter, 98, 
is used for special classification provisions that apply only to U.S. exports.  
The 10-digit Harmonized System-Based Schedule B codes (commodity numbers) comprise 
these chapters.  There are approximately 9,000 of these 10-digit classification 
codes in the 2002 edition of Schedule B.  The definitions for these codes are 
as follows:

Code		Definition	  Example
07			Chapter in 	  Chapter 7, 
			which a 	  Edible
			commodity is	  Vegetables
			classified	  and Certain
					  Roots and         Tubers
 
0713		Represents 	  Dried
			the heading	  Leguminous   
			in that		  Vegetables,  
			chapter	  Shelled,
					  Whether or        not Skinned      or Split

0713.10	Represents	  International
			the		  Harmonized
			Harmonized	  Code for
			System code	  Peas
				subheading	  (Pisum
					  Sativum)
		
0713.10.4020	Represents 	  Commodity
			statistical	  Code for 
			subdivisions	  Green Peas


REPORTING EXPORT TRANSACTIONS ON THE BASIS OF THE HARMONIZED TARIFF SCHEDULE (HTS) OF 
THE UNITED STATES ANNOTATED FOR STATISTICAL REPORTING PURPOSES

	The United States has adopted the Harmonized System as the basis of both its export
 classification system (Schedule B) and its import classification system (HTS).  The 
first six digits of the commodity numbers in chapters 1 through 97 of both the HTS and 
the Schedule B are identical with respect to descriptions and codes.  Beyond the six-digit 
level, the classification may be comparable on a one-to-one basis or comparable by adding 
two or more import classifications to equal a single Schedule B classification.  For most 
commodities classified in chapters 1 through 97, exporters may report either the HTS 
number or Schedule B numbers.  For export situations in which only the Schedule B number 
can be reported, see the Introduction to the HTS.  Schedule B numbers may not be reported 
on import entries.  HTS numbers reported for exports should not include any symbols in 
the form of prefixes.  These symbols are used only to denote special import tariff 
treatment.


LOCATING THE CORRECT SCHEDULE B NUMBER

	The table of contents at the front of this document lists all of the sections and
 chapters with their descriptions.  This will serve as a guide to the general area 
in which a commodity may be classified.  Schedule B also contains an alphabetical index 
that indicates the first six digits or six-digit range of the 10-digit Schedule B 
numbers for the listed item.  Although only the first six digits of the Schedule B number 
are given in the index, the complete 10-digit code must be used in reporting export 
shipments.  The only purpose of the index is to assist in locating the part of the 
document in which a particular classification can be found.  Failure to find the item 
in the index does not relieve the shipper of the responsibility for locating the 
correct Schedule B number for the item being reported.  

	After locating the description and six-digit code for an item in the alphabetical
 index, the exporter then searches for that numerical sequence in the body of 
Schedule B.  After reading all pertinent section, chapter, and statistical notes, the 
exporter should assign the appropriate 10-digit Schedule B number.



	In cases where the exporter is unable to locate an item in the alphabetical index,
 one of two methods of assigning a Schedule B number may be chosen.  If the HTS number 
is known, in most cases it may be reported in lieu of the Schedule B number.  The item 
also may be located in the Schedule B numeric sequence by referring to the table of 
contents in the front of the Schedule B and locating the appropriate chapter, and 
subsequently, the correct Schedule B number.  The General and U.S. Rules of Interpretation 
and Definitions, as well as the notes appearing in the sections and chapters of Schedule B, 
should be reviewed before attempting to locate the correct commodity number.


DEFINITIONS

	The terms "wholly of", "in part of", and "containing", when used between the description
 of an article and a material (e.g., woven fabrics, wholly of cotton), have the following 
meanings:

	"wholly of" means that the goods are, except for negligible or insignificant quantities
 of some other material or materials, composed completely of the named material.

	"in part of" or "containing" means that the goods contain a significant quantity of the
 named material.

	The term "headings" refers to the article descriptions appearing in Schedule B at the
 four-digit level; the term "subheading" refers to any article description indented thereunder.  
A reference to "headings" also encompasses the subheadings indented thereunder.GENERAL RULES 
OF INTERPRETATION

	Classification of goods in Schedule B shall be governed by the following principles:

1.	The titles of sections and chapters are provided for ease of reference 
only. Classification shall be determined according to the terms of the headings and 
relative section or chapter notes and, unless such headings or notes have
	additional requirements, according to the following provisions.

2.	Any reference in a heading to an article
	shall be taken to include a reference to
	that article incomplete or unfinished,
	provided that, as presented, the
	incomplete or unfinished article has the
	essential character of the complete or
	finished article. It shall also be taken to
	include a reference to the article complete or finished (or failing to be classified
 as complete or finished by virtue of this rule), exported or disassembled.

	Any reference in a heading to a material or substance shall be taken to include a reference
 to mixtures or combinations of that material or substance with other materials or substances.  
Any reference to goods of a given material or substance shall be taken to include a reference 
to goods consisting wholly or partly of such material or substance.  The classification of goods 
consisting of more than one material or substance shall be according to the principles of  rule 
number 3.

3.	When, by application of rule 2b or for any other reason, goods are, prima facie classifiable und
er two or more headings, classification shall be effected as follows:

	a.	The heading that provides the most specific description shall be preferred to headings
 providing a more general description.
		However, when two or more headings each refer to parts only of the materials or substances
 contained in mixed or composite goods or to parts only of the items in a set put up for retail 
sale, those headings are to be regarded as equally specific in relation to those goods, even if 
one of them gives a more complete or precise description of the goods.

	b.	Mixtures, composite goods consisting of different materials or made up of  different
 components, and goods put up in sets for retail sale, which cannot be classified by reference 
to 3a, shall be classified as if they consisted of the material or component that gives them 
their essential character, insofar as this criterion is applicable.

	c. 	When goods cannot be classified by
		reference to 3a or 3b, they shall be  classified under the heading that occurs last in
 numerical order among those that equally merit consideration.

4.	Goods that cannot be classified in
	accordance with the above rules shall be  classified under the heading appropriate  to the
 goods to which they are most
	akin.

5.	In addition to the foregoing provisions, the following rules shall apply with respect of 
the goods referred to therein:

	a.	Camera cases, musical instrument
		cases, gun cases, drawing instrument cases, necklace cases and similar containers, specially
		shaped or fitted to contain a specific article or set of articles, suitable for long-term
 use and exported with the articles for while they are intended, shall be classified with such 
articles when of a kind normally sold therewith.  The rule does not, however, apply to containers 
that give the whole its essential character.

	b.	Subject to the provisions of rule 5a.,
		packing materials and packing
		containers exported with the goods
		therein shall be classified with goods if they are of a kind normally used for
 packing such goods.

		However, this provision does not
		apply when packing materials or packing containers are clearly  suitable for repetitive use.

6.	The classification of goods in the
	subheadings of a heading shall be determined according to the terms of those subheadings and
 any related subheading notes; and the classification of goods shall be based on the 
understanding that only subheadings at the same level are comparable.  For the purposes of this 
rule, the relative section and chapter notes also apply, unless the context dictates otherwise.


ADDITIONAL U.S. RULES OF 
INTERPRETATION

1.	In the absence of special language or
	context that dictates otherwise,

	a.	A Schedule B classification controlled
		by use is to be determined in accordance with the use in the United States at, or immediately
 prior to, the date of exportation of articles of that class or kind to which the exported articles 
belong, and the controlling use is the principal use, i.e., the use that exceeds all other uses.

	b.	A provision for parts of an article covers products solely or principally used as a part of
 such articles, but a provision for "parts" or "parts and accessories" shall not prevail over a 
specific provision for such part or accessory.

	c.	Provisions covering goods of named textile materials cover goods that are of textile materials
 and that would be regarded as consisting wholly of that named textile material, as determined in 
accordance with note 2 to section XI for products classified in chapters 50 to 55 and consisting 
of the same textile materials, and in the same proportion, as the exported products.


REPORTING REQUIREMENTS

Not Elsewhere Specified or Included (n.e.s.o.i.).  If a Schedule B number has been located that seems 
to apply to the commodity being classified, but the description for the number carries the limitation 
n.e.s.o.i., the commodity number should not be used until a check has been made to determine whether 
there is a classification elsewhere into which the item will fit more specifically.  Other 
classifications under the same general heading should be examined.

Double Units of Quantity.  When two units of quantity are specified in the "Unit of Quantity" column 
for a Schedule B classification, unless there are blocks specifically provided and labeled, the first, 
or primary, unit should be reported on the Shipper's Export Declaration (SED), on the same line with 
the Schedule B number and the value.  Report the second, or secondary, unit of quantity directly 
below the first unit of quantity.

Shipping Containers.  When shipping containers are exported as merchandise for sale or transfer of 
ownership abroad, they should be reported on export declarations under the appropriate Schedule B 
commodity number for the particular type of container.  However, in accordance with the Foreign Trade 
Statistics Regulations, shipping containers are not considered to be exported when they are moving, 
either loaded or empty, strictly in their capacity as carriers of merchandise, i.e., as instruments 
of international traffic, not for sale or transfer from U.S. ownership or title to foreign ownership 
or title.  Therefore, containers leaving the United States strictly as instruments of international 
traffic are not required to be reported on the SED.  If for any reason an exporter wishes to report 
the movements of such containers on export declarations, they may be reported under Schedule B number 
9801.20.0000. This classification is not to be used to report the contents of the containers. Contents 
of such containers are to be reported under the appropriate classification(s) for the merchandise.

Commodities Donated for Relief or Charity by Individuals or Private Agencies.  Chapter 98 provides 
for exports of certain commodities donated for relief or charity by individuals or private agencies.  
In general, except for bulk grain, such classifications are provided for those commodities that are 
known to be, or are likely to be, exported for relief or charity in fairly sizable amounts.  In 
addition to chapter notes for chapter 98, please read the chapter notes for chapters 1 through 
16, 21, 30, and 63, to ensure that relief or charity shipments are correctly classified.

Reporting the Value of Repairs and Alterations.  Shippers should report, under Schedule B number 
9801.10.0000, the value of repairs and alterations made on articles previously imported for such 
purposes.  These articles should be reported as domestic merchandise, and the value to be reported 
should represent the total value of repairs and alterations made in the United States.  If there 
is no charge, a value representing the cost of repairs to the manufacturer or a reasonably 
ascertained estimate thereof must be reported.  The value of the article that was imported to be 
repaired or altered should not be reported and therefore should not be included in the value 
reported for commodity number 9801.10.0000.

Export of Articles Previously Imported for Processing.  Articles exported after having been 
imported temporarily under bond for processing (HTS 9813.00.0520) should be reported as domestics 
merchandise.  The Schedule B number assigned should be selected from chapters 1 through 97, 
according to the exported article.  The Value reported should be the total value of the article.

Additional Information.  See the "Correct Way to Fill Out the Shipper's Export Declarations."

Revisions to Schedule B.  It is expected that revisions to Schedule B classifications will be 
required from time to time.  Such revisions will probably be announced in the form of bulletins, 
released periodically.  Any recommendations for revisions to existing classifications or for the 
establishment of new classifications should be addressed to:

	The Chairman
		Committee for Statistical Annotation of Tariff Schedules
	United States International Trade
		Commission
	Washington, D.C.  20436

Requests should be submitted no later than August 1, for changes to be effective January 1.