Global trade involves multiple codes, alphanumerics, and identities, each of which has a specific function to perform. These codes are generally used for classification and distinction between two product categories.
For example, the HS code classification uses a six-digit code to be used by the customs authorities to determine the duties and taxes on specific types of products. Similarly, there are HTS systems, ECCNs, and COO which are used for different purposes.
This article focuses on what HTS, ECCN and COO are in terms of global trade. Furthermore, we’ll explore how to access these data to make your trade smoother and efficient.
What Is HTS?
The Harmonised Tariff Schedule is a ten-digit classification system used in imports to the United States. Much like the HS code classification, the HTS is used for assessing products and determining the duties that have to be levied on them. The United States International Trades Commission administers these numbers.
If you want to opt for HS to HTS code, you can easily use the data intelligence tools as the HTS code has a similar format to the HS codes. Between the two, only the last four digits differ. You can also engage a DI solution provider for the same.
ECCN (Export Control Classification Numbers)
The United States has a dedicated agency under its commerce department, which deals with the security aspect related to its imports and exports. It is named Bureau of Industry and Security (BIS), and it issues an Export Control Classification Number for the products which fall under the prohibited category.
As per BIS, an ECCN is a five-digit alphanumeric code and is used explicitly for export control purposes. An ECCN categorises a product based on its category and technical parameters.
It also has sub-categories to further classify the product into components, materials, parts, etc. Moreover, an exporter can know the reason behind the export control associated with the product by referring to the final three digits of the ECCN.
How To Find The ECCN?
A general way of finding the ECCN for your product is by referring to the commerce control list. Let us know the steps to do the same:
- Start by looking for your item on the commerce control list.
- Once you land on a potential ECCN, which you think is nearest to your product, read on through the parameters that define that product’s existence on that list.
- It may also be possible that the ECCN will be further divided into a list having subparagraphs. Go through those subparagraphs to know whether your product meets the technicalities listen in that particular ECCN category or not.
- It is better to double-check the other potential ECCNs for your product before you finalise your ECCN entry.
Now that we know what is HTS and what ECCN stands for, let us know what COO or Certificate of Origin is and who generates it.
Certificate Of Origin (COO)
Exporters or their agents need to generate a certificate of origin for their products. The primary intent behind a COO is to depict the country of manufacturing for transparency purposes.
It also helps the authorities regulate preferential trading terms like FTAs. Furthermore, it is also used to calculate economic parameters between two countries like trade deficit and surplus.
How Can Data Intelligence Help?
It is evident that taking the direct route to know the ECCN, HS to HTS code, and determining the country of origin can be a time-taking task for exporters. However, you can always rely on the global trade innovative solution providers like Trademo.
They can do the intelligent work on your behalf and use the same data to leverage valuable insights for your trade business!