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Walk-around About Hts Classification, Eccn Classification And Itar Compliance.
HTS or HS is also known as Harmonized System or Harmonized Tariff Schedule, which is developed by World Customs Organisation (WCO) which is again classified and defined a s International Goods.
However, there is a slight difference between HS and HTS codes. The HS codes are usually six digit codes which is an universal standard code and then the HTS codes come with seven to ten (7 to 10) digits. The codes are unique after the sixth digit and usually the codes after sixth digit is determined by respective countries of import.
These codes are vital because they not only reveal the tariff/duty rate of the traded product, they also track the records of international trade statistics which is prevalent in 200 countries.
The HTS code was enacted by Congress and is effective since january 1, 1989 by replacing the Tariff schedules of the United States. The HTS Classification codes is a hierarchical structure to define all goods in trade for statistical, duty 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. Export Control Classification Number is abbreviated as ECCN which have five character alpha numeric designations used on the Commerce Control List (CCL) to decide on the dual use items for export control purposes. ECCN differentiates the items based on the nature of the product like the type of commodity, software and technology and its respective criterion.
Every product, technology and software is subject to licensed by the Bureau of Industry and Security (BIS) included in the Commerce Control List which is found in the Supplement 1 to Part 774 of the Export Administration Regulations.
ECCN is completely different from a Schedule B number, which is used by the Bureau of Census to collect trade statistics. It is also very different from the Harmonized Tariff System (HTS) Nomenclature usually used to determine import duties. ECCN’s provide different levels of control based on the country of the end use, the end user themselves as well as the end user of the item.
Now moving a bit further we move to ITAR compliance which is known as International Traffic in Arms Regulations controlling the export and import of services and defence related articles on the United States Munitions List (USML). As per the U.S. Government all manufacturers, brokers and exporters of defense articles and services or related to technical data should be ITAR compliant. So, there is a steady demand for their supply chain to be ITAR compliant as well for the smooth process function.
The Government has severe charges for companies that does not comply with the compliances of the ITAR with civil charges shooting up as high as $500,000 per violation and criminal fines of $1,000,000 and 10 years of Imprisonment.
So, at the end of the day it is seen that a company doing business in a respective field has to know and handle all the compliances of the business regulations properly to run smoothly and avoid any penalties that would ruin it’s hard work.
About The Author:-
Refer to: https://www.intredex.net/ to know and learn more about HTS classification,
ECCN Classification,ITAR compliance.
linqs software helps you with an accurate KYC screening of customers or trading partners before entering a deal with them.
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