Hitting the Mark – Classification under the Harmonized System & Schedule B Code

The Harmonized Commodity Description and Coding System (“Harmonized System”) is used by the United States and more than 150 countries for the classification of merchandise that is traded around the world. For importers, the correct classification of goods is critical for determining the duty rates that apply to imported goods, free trade agreement and special trade program eligibility, the applicability of antidumping or countervailing duties, and satisfying their “reasonable care” obligations. Incorrect classification can lead to additional duty liability, penalties, and government scrutiny. For exporters, understanding the Harmonized System is equally important as its principles drive the classification of exported goods under the Schedule B Code which is vital for U.S. export compliance.