HTS or HS can also be known as Harmonized System or Harmonized Tariff Schedule, and that is developed by World Customs Organisation (WCO) that is again classified and defined a s International Goods.
However, you will find there’s slight difference between HS and HTS codes. The HS codes are generally six digit codes and that is an universal standard code and therefore the HTS codes consist of seven to ten (7 to 10) digits. The codes are unique following the sixth digit in most cases the codes after sixth digit will depend on respective countries of import. These codes are crucial because they not just reveal the tariff/duty rate with the traded product, in addition they track the records of international trade statistics that’s prevalent in 200 countries.
The HTS code was enacted by Congress which is effective since January 1, 1989 by replacing the Tariff schedules with the United States. The HTS Classification codes is often a hierarchical structure to define all goods in trade for statistical, duty and quota purposes. This structure seemingly based around the International Harmonized Commodity Description and Coding System, administered from the World Customs Organization in Brussels.
Now, continuing to move forward we will fix our eyes about the concept of ECCN classification. Export Control Classification Number is abbreviated as ECCN that have five character alpha numeric designations used within the Commerce Control List (CCL) to decide within the dual use items for export control purposes. ECCN differentiates the items in accordance with the nature in the product such as the type of commodity, software and technology and it is respective criterion.
Every product, technology and software programs are subject to licensed through the Bureau of Industry and Security (BIS) contained in the Commerce Control List that is found in the Supplement 1 to Part 774 on the Export Administration Regulations.
ECCN is very different from a Schedule B number, which can be used from the Bureau of Census to accumulate trade statistics. It is additionally very completely different from the Harmonized Tariff System (HTS) Nomenclature usually accustomed to determine import duties. ECCN’s provide different degrees of control in line with the country in the end use, the final user themselves likewise as the conclusion user in the item.
Now moving a little further we go on to ITAR compliance which is referred to as International Traffic in Arms Regulations governing the export and import of services and defence related articles about the United States Munitions List (USML). As per the U.S. Government all manufacturers, brokers and exporters of defense articles and services or in connection with technical data must be ITAR compliant. So, you will find there’s steady requirement for their supply chain being ITAR compliant likewise for the smooth process function.
The Government has severe charges for firms that does not adhere to the compliances from the ITAR with civil charges shooting up as high as $500,000 per violation and criminal fines of $1,000,000 and several years of Imprisonment.
So, at the end in the day it can be seen that the company working in a respective field has to know and handle every one of the compliances with the business regulations properly to operate smoothly and steer clear of any penalties that could ruin it’s tough work.