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1e. Reading

Read the text about the HS structure. Compare it with the product nomenclature applied by the Russian Federation. What are the differences?

Harmonised System Structure

The Harmonised System is a complete product classification system (i.e., it covers all imported merchandise). It was designed as a “core” system so that countries adopting it could make further subdivisions according to their particular tariff and statistical needs.

At the international level, the Harmonised System consists of approximately 5,000 article descriptions which appear as headings and subheadings. These descriptions are arranged into 97 chapters grouped into 21 sections. Chapter 77 is reserved for future use. Two final chapters, 98 and 99, are reserved for national use by individual countries in the coding of provisions other than according to the terms of the Harmonised System nomenclature (e.g., special tariff programs and temporary duty suspensions or increases).

Goods in trade generally appear in the Harmonised System in categories or product headings beginning with crude and natural products and continuing in further degrees of complexity through advanced manufactured goods. This progression is found within chapters and among chapters (e.g., live animals are classified in chapter 1, animals hides and skins in chapter 41, and leather footwear in chapter 64). These product headings are designed at the broadest coverage levels with 4-digit numerical codes (or headings) and, where deemed appropriate, are further subdivided into narrower categories assigned two additional digits (which comprise 6-digit numerical codes or subheadings). The first two digits of a 4-digit heading indicate the chapter in which the heading is found (e.g., heading 2106 is in chapter 21).

EXAMPLE: Heading 4010 (see excerpt below from heading 4010) provides for “conveyor or transmission belts or belting, of vulcanized rubber.” Within the subheading structure of that heading, there is 5-digit (or “one-dash”) subheading 4010.1 which provides for “conveyor belts or belting.” Within the subheading structure of 5-digit subheading 4010.1 there are four 6-digit (or “two-dash”) subheadings: 4010.11 which provides for conveyor belts or belting “reinforced only with metal”; 4010.12 which provides for conveyor belts or belting “reinforced only with textile materials”; 4010.13 which provides for conveyor belts or belting “reinforced only with plastics”; and 4010.19 which provides for “other” conveyor belts or belting.

1f. Vocabulary

Find English equivalents of the following in the text:

раздел; группа; товарная позиция; субпозиция; степень сложности; четырехзначный цифровой код; присваивать добавочный знак; цитата из… .

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2.The Structure of Commodity Classification Systems in Australia and the US 2a. Reading

Read the text about commodity classification systems used in Australia and answer the questions.

1.What do the abbreviations AHECC, HTISC, ABS stand for?

2.How has Australia developed the Harmonised System to adjust to its own purposes?

3.How often are amendments to the AHECC and the HTISC made?

4.What governmental agencies are responsible for maintaining the AHECC and the HTISC?

On 1 January 1988, Australia adopted the Harmonised System for describing internationally traded goods. Australia has expanded the HS to create the Australian Harmonised Export Commodity Classification (AHECC) and Harmonised Tariff Item Statistical Code (HTISC) to provide further commodity detail for its exports and imports.

All goods exported from Australia since 1 January 1988 have been classified according to the eightdigit AHECC. The first six digits of the AHECC code are taken from the International Harmonised System, with the seventh and eighth digits (statistical codes) added by the Australian Bureau of Statistics (ABS) to satisfy Australian statistical requirements.

AHECC codes provide the most detailed breakdown of exported goods and are used to analyse exports of particular commodities. The ABS has responsibility for maintaining the AHECC documentation. Due to the smaller number of statistical codes, the absence of tariff considerations, and the comparatively less diverse export trade, amendments to the AHECC are made less frequently than to the HTISC. The ABS distributes replacement pages for the AHECC every six months. An example of the hierarchical structure of the AHECC is included below.

All goods imported into Australia since 1 January 1988 have been classified according to the tendigit HTISC. The first six digits of the code are taken from the Harmonised System (HS), with the seventh and eighth digits added by Customs to allow for different rates of duty applied to particular goods. The ninth and tenth digits (statistical codes) are added by the ABS to satisfy Australian statistical requirements, and, in some instances, the information needs of regulatory or supervisory agencies which are able to access the records from Customs.

HTISC codes provide the most detailed breakdown of imported goods and are used to analyse imports of particular commodities. Customs has responsibility for maintaining the HTISC documentation and distributes replacement pages containing any recent classification amendments to users every six months.

The detailed classification can be found in the Combined Australian Customs Tariff Nomenclature and Statistical Classification (Customs Tariff). An example of the hierarchical structure of the HTISC is included below.

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2b.Vocabulary

Complete the text about the commodity classification system used in the US with the words from the box.

Harmonised Tariff System of the United States (HTSUS)

When goods are imported into the customs territory of the United States (the fifty states, the District of Columbia, and Puerto Rico), they are subject to certain __________ involving the US Bureau of Customs and Border Protection (“CBP”) of the US Department of Homeland Security. In almost all cases, the goods are required to be “entered,” that is, declared to the CBP, and are subject to detention and __________ by CBP officers to insure __________ with all laws and regulations enforced and administered by the CBP.

According to the Customs Modernisation Act, it is now the responsibility of the importer of record to use “reasonable care” to “enter,” “classify” and “value” the goods, and provide any other information necessary to enable the CBP to __________ the correct duties, collect accurate statistics, and determine whether all other applicable legal requirements are met. __________ goods is important not only for duty purposes, but also to determine whether the goods are subject to quotas, restraints, embargoes or other

__________. The act of classifying goods requires an importer to be familiar with the HTSUS (and the instrument upon which it is based, the international Harmonised Commodity Description and Coding System).

The CBP is responsible for fixing the final classification and __________ of the goods. The CBP performs this in a process called “liquidation of the entry.” The classification and valuation of goods is an important part of the importation and entry process. At a minimum, incorrect classification or valuation may lead to delays and increased duties (plus interest). The failure to use reasonable care in either situation may also lead to detention or __________ of the merchandise, and the imposition of civil or criminal

__________.

2c. Pair work

Classifying Your Commodity

Martina is on the phone enquiring about a code for exporting goods with the Commodity Analysis Centre (CAC). Complete the conversation with the phrases from the box. Practise the conversation with a partner.

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2d. Comprehension

Answer the questions on the conversation.

1.What is Schedule B used for?

2.How is Schedule B related to the Harmonised System?

3.What type of goods is not classified by Schedule B?

4.What principle is applied to classifying intangibles?

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Appendices

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Export Packing and Marking

Pictorial cargo handling marks

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Hazardous Materials Shipping Labels

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Appendix 2

INCOTERMS 2000

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INCOTERMS 2010

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Appendix 3

US Customs Declaration Form

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