Schedule B 2006 - 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 under 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.
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