HS-Code-HTS-Code-and-ECCN-Code-Definitions-amp-Applications-2

HS Code, HTS Code, and ECCN Code: Definitions & Applications

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1. HS Code (Harmonized System Code)

  • Definition:
    The Harmonized System (HS) is an internationally standardized system of names and numbers used to classify traded products.
  • Issued by:
    World Customs Organization (WCO).
  • Format:
    A 6-digit code, which can be extended by individual countries.
  • Structure:
    • First 2 digits → Chapter (product category).
    • Next 2 digits → Heading (specific group of products).
    • Last 2 digits → Subheading (specific item).
  • Example:
    • HS Code: 6205.20
      • 62 → Chapter: Apparel
      • 05 → Heading: Shirts
      • 20 → Subheading: Cotton shirts

Main Applications:

  1. Customs Declarations:
    • Used globally for import/export classification.
    • Determines tariffs and duties.
  2. Trade Agreements & Compliance:
    • Applied in free trade agreements (FTAs) for preferential duty rates.
  3. Logistics & Shipping:
    • Used by freight forwarders and customs brokers.
  4. Statistical Reporting:
    • Used for trade data collection and analytics.

2. HTS Code (Harmonized Tariff Schedule of the United States)

  • Definition:
    The HTS Code is a US-specific system used for classifying imported goods.
  • Issued by:
    US International Trade Commission (USITC).
  • Format:
    A 10-digit code based on the HS Code, with additional digits for US-specific classifications.
  • Structure:
    • First 6 digits → HS Code (international).
    • Last 4 digits → US-specific sub-classification.
  • Example:
    • HS Code: 6205.20 → General cotton shirts
    • HTS Code: 6205.20.1000 → US-specific cotton shirts for men

Main Applications:

  1. US Imports:
    • Used in customs declarations for imported goods.
  2. Tariff and Duty Calculations:
    • Determines duty rates and import restrictions.
  3. Trade Compliance:
    • Required in import documentation (e.g., CBP forms).
  4. Supply Chain Management:
    • Used by logistics and procurement teams.

3. ECCN Code (Export Control Classification Number)

  • Definition:
    The ECCN is an alphanumeric code used by the US Department of Commerce to classify dual-use items (civilian + military applications) for export control purposes.
  • Issued by:
    Bureau of Industry and Security (BIS), part of the US Department of Commerce.
  • Format:
    A 5-character alphanumeric code.
  • Structure:
    • First digit → Category (e.g., electronics, chemicals).
    • Second letter → Product group (e.g., systems, software, technology).
    • Last 3 digits → Specific item classification.
  • Example:
    • 3A001 → Electronics (Category 3), Systems, and Equipment with potential military application.

Main Applications:

  1. Export Compliance:
    • Required for export licenses and re-exports of dual-use items.
  2. Trade Restrictions:
    • Used to determine if export licenses are required for controlled items.
  3. Technology and Software Exports:
    • Applied to IT, encryption, and high-tech products.
  4. Sanctions and Embargo Compliance:
    • Helps identify restricted or embargoed countries
Feature HS Code HTS Code ECCN Code
Purpose Global classification of traded goods. US-specific classification of imports. US export control of dual-use items.
Issued by WCO (World Customs Organization). US International Trade Commission. US Department of Commerce (BIS).
Format 6 digits (international standard). 10 digits (US-specific). 5 alphanumeric characters.
Application Customs, tariffs, and trade statistics. Import duties, compliance, and customs declarations. Export control, licenses, and trade restrictions.
Example 6205.20 → Cotton shirts. 6205.20.1000 → US-specific cotton shirts for men. 3A001 → Electronics with encryption.

Key Takeaway:

  • HS Codes → International product classification (applies globally).
  • HTS Codes → US-specific import classification (used for customs and tariffs).
  • ECCN Codes → US export control classification (for dual-use and restricted items).

Sunstream has been providing material coding services in different country regulations for the past many years. If you need any support on trade related item coding, reach out to us today. We also provide compliance support in Conflict minerals services and environmental regulations like RoHS and REACH.