HTS or HS is also known as Harmonized System or Harmonized Tariff Schedule, which is developed by the World Customs Organization (WCO), which is again classified and defined as International Products.

However, there is a slight difference between HS and HTS codes. HS codes are generally six digit codes which is a universal standard code and then HTS codes come with seven to ten (7 to 10) digits. The codes are unique after the sixth digit, and generally the codes after the sixth digit are determined by the respective importing countries. These codes are vital because they not only reveal the tariff / duty rate of the traded product, but also track the records of the international trade statistics that are prevalent in 200 countries.

The HTS code was enacted by Congress and is in effect on January 1, 1989, replacing the United States rate schedules. HTS classification codes are a hierarchical structure to define all goods in trade for statistical, tariff and quota purposes. This structure is completely based on the International Harmonized Commodity Description and Coding System, administered by the World Customs Organization in Brussels.

Now moving forward we will fix our eyes on the concept of ECCN classification. The Export Control Classification Number is abbreviated as ECCN, which has five-character alphanumeric designations that are used in the Trade Control List (CCL) to decide on dual-use items for export control purposes. ECCN differentiates the elements based on the nature of the product, such as the type of product, software and technology and their respective criteria.

Each product, technology, and software is licensed by the Bureau of Industry and Security (BIS) included in the Trade Control List found in Supplement 1 to Part 774 of the Export Administration Regulations.

ECCN is completely different from a Schedule B number, which is used by the Census Bureau to collect business statistics. It is also very different from the Harmonized Tariff System (HTS) nomenclature that is often used to determine import duties. ECCNs provide different levels of control depending on the country of end use, the end user itself, and the end user of the item.

Now, moving a little further, we move towards compliance with ITAR, which is known as the International Arms Trafficking Regulations that control the export and import of defense-related services and items on the United States Munitions List (USML). . According to the US government, all manufacturers, brokers, and exporters of defense or technical data-related goods and services are required to comply with ITAR. So there is a constant demand for your supply chain to be ITAR compliant and also for the process to run smoothly.

The Government has severe charges for companies that fail to comply with ITAR violations with civil charges that skyrocket up to $ 500,000 per violation and criminal fines of $ 1,000,000 and 10 years in prison.

So at the end of the day, it is seen that a company doing business in a respective field has to know and properly handle all compliance with trade regulations in order to run smoothly and avoid penalties that would ruin their hard work.