Trade Term: Harmonized System

Posted on November 28, 2012 by rosannatorres

By: John Winston Sperry

Though I joined the Foreign Trade Division in July, I still find myself exposed to new trade terms. During my first assignment to learn how to use USA Trade Online (UTO), I was introduced to this month’s trade term: Harmonized System (HS).

HS stands for the international Harmonized System and serves as the foundation for the import and export classification systems used in the United States. The U.S. import, Harmonized Tariff Schedule (HTS), and export, Schedule B, classification systems rely on HS codes for their 4 and 6 digit HS headings and subheadings. The Harmonized System is administered by the World Customs Organization and is updated approximately every five years. 2012 marked the most recent HS revision, meaning the next revision will not be due until 2017.

Since greater commodity detail are often needed than the 4 and 6 digit HS headings and subheadings, Harmonized System codes under the Harmonized Tariff Schedule and Schedule B classification systems expand their scope to 10 digits. Proposed code changes to these 10 digit classification codes are submitted to and reviewed by the 484(f) Committee and published biannually in January and July (HTS) or annually in January (Schedule B). Due to these consistent revisions, it is essential to check your Schedule B commodity codes annually on Foreign Trade Schedule B website. For instance, in 2011 the Schedule B commodity code 7319.20.0000 represented safety pins of iron or steel but as of January 2012, with the WCO updates, the code changed to 7319.40.2000 for the same product. For further information about Schedule B codes and how to get them, refer to a prior blog post on Schedule B.

Proper classification of imports and exports under the HS is fundamental to ensure our trade statistics are accurate in order to monitor the condition of the economy. The published trade statistics on USA Trade Online can serve to help businesses understand what commodities are being traded, where those commodities are traded, and how much they are traded. This would not be possible without the proper HS classification of goods.

For more information on how to use the HS to classify your export goods visit the Foreign Trade website or call 1-800-549-0595, Menu Option #2.

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Getting Your Trade Data Sooner!!!

Posted on November 14, 2012 by rosannatorres

By: Melissa

The U.S. Census Bureau’s Foreign Trade Division is pleased to announce that you will be getting your trade data sooner! Beginning in March 2013 with the January 2013 U.S. International Trade in Goods and Services (FT-900) report, monthly trade statistics will be made available an average of 35 calendar days after the end of the reference month.

This is approximately one week earlier than 2012! Changes in technology leading to processing improvements have allowed the Census Bureau and the U.S. Bureau of Economic Analysis to embark on this aggressive project to accelerate the release.This allows vital economic data to be available to the public approximately 34-36 days after the reference month has ended. The acceleration will allow other government agencies and private industry to incorporate the data sooner for more efficient economic analysis and decision-making!

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Record High Exports in September

Posted on November 8, 2012 by katrinarosen

By: Lam

Overall, the deficit of goods and services is down from $43.8 billion (-$2.3 billion) in August (revised) to $41.5 billion in September. Specifically, exports increased from $181.4 billion (+$5.6 billion) in August (revised) to $187.0 billion in September. Imports went from $225.2 billion in August (revised) to $228.5 billion in September resulting in a +$3.4 billion increase.

Major contributors to the increase of goods exports include industrial supplies and materials (+$3.4 billion) and foods, feeds, and beverages (+$1.1 billion). For goods imports, the major contributors to the increase in September were consumer goods (+$2.7 billion) and industrial supplies and materials (+$1.2 billion). We also saw a decrease of automotive vehicles, parts, and engines for both exports (-$0.3 billion) and imports (-$0.9 billion).

For more detail, click here.

Liquefied Natural Gas Exports

Recently, Ambassador Ron Kirk, United States Trade Representative, discussed the impact of natural gas on the U.S. economy and its potential to decrease dependence on external energy sources. Out of the 234 U.S. trading partners, liquefied natural gas companies in the United States are only exporting to 31 countries. So far, in 2012 the world’s biggest consumer of U.S. Liquefied Natural Gas (LNG) is Japan with $160.1 million dollars worth of LNG imported from the United States alone. Other top consumers of LNG exports from the U.S. are Canada, India, Brazil, and Spain. In December, the United States will engage in negotiations with a dozen countries to forge an Asia-Pacific trade deal, which could potentially increase the number of LNG trading partners. So stay tuned!

The data mentioned in this post (and much more) can be found on USA Trade Online.

 

*Note: LNG is defined as imports and exports of Harmonized System (HS) code 271111.

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Smashing Pumpkins

Posted on October 31, 2012 by Global Reach Daniel

By the United States Council for International Business

The New York Philharmonic Orchestra, Tour de France bicycle racers, NBC Sports – even the rock band Smashing Pumpkins: all have used an ATA Carnet when shipping valuable equipment overseas. And so has Bob Carbo, who, as it happens, knows a thing or two about smashing pumpkins himself.

Carbo used a Carnet, a document that speeds equipment and other goods through customs, when he shipped his pumpkin catapult to a “punkin chunkin” contest in Belgium last summer. The organizers wanted an American team, and Carbo accepted the invitation because it was his first opportunity to show off his skills outside the United States.

Punkin chunkers, as they call themselves, use catapults to shoot pumpkins high and far, much as medieval armies built them as weapons for hurling projectiles over the walls of enemy forts and castles. Carbo started competing 15 years ago after reading a newspaper announcement about a punkin chunkin contest. He went, he saw, and he was hooked.

He built his own catapult, using wood, steel and rope, modeled after an ancient Roman type that he discovered during his research. “It was very powerful, especially for its size, and somewhat portable,” Carbo explained. The 11-foot high catapult rests on a trailer that Carbo tows with his pick-up truck.

The highlight of the year for pumpkin hurlers is the World Punkin Chunkin Championship, held in Delaware each fall. Last year it drew 110 teams. Carbo placed third, with a personal best of 2,196 feet.

But getting the 3-ton machine to Europe presented a different kind of challenge. “I had never shipped anything like this before, so it was all new,” said Carbo, whose smart business decisions show that he’s definitely not out of his gourd. He found a freight forwarder called Ship Overseas that booked Onager on a ship sailing from Baltimore to the port of Zeebrugge in Belgium.

Jack Friedman, president of Ship Overseas, suggested that he look into getting a Carnet. “I thought this was a good idea because it might help to get through Customs. We thought they might raise some questions because the catapult’s a medieval weapon,” Carbo laughed. “The other big thing was that we didn’t have to pay any taxes or duties.”

Carnets are merchandise passports that enable users to avoid extensive customs procedures, payment of duties and value-added taxes for the temporary importation of various types of goods. They normally cover products such as commercial samples, professional equipment, and goods for trade shows and exhibitions. They are also used for special items, such as precious works of art displayed in museum exhibitions, race horses, and satellites.

By using a Carnet, Carbo was able to avoid Belgium’s 10 percent customs duty and 19 percent value-added tax.

The tournament was held Sept. 5 in a small Belgian town called Bikschote. “They call it the European Punkin Chunkin Championship, but we were the only one of the 13 teams not from Belgium,” he said. Carbo doesn’t have any plans for competing in other events outside the U.S., but says “I’d love to do it again. Maybe some other country will invite us.” And if it does, he plans to use a Carnet to help him get there.

“An international competition for catapulting pumpkins. Who’d a thunk it?” quipped Cynthia Duncan, who heads USCIB’s Carnet service. USCIB administers the carnet program in the United States in partnership with the International Chamber of Commerce and the World Customs Organization. The service is heading for a record year, and is planning to welcome Mexico into the system very soon. Learn more about Carnets at http://www.merchandisepassport.org. Carbo’s web site is http://www.onager.net. For information about this year’s World Punkin Chunkin Championship, go to http://www.punkinchunkin.com. It even has a countdown clock (down to the second) to the start of competition on November 2.

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Trade Term: Schedule B

Posted on October 24, 2012 by rosannatorres

You went to mail a shipment and your carrier asked you to provide them a Schedule B number.

What is that? A Schedule B number is a 10-digit number used in the United States to classify physical goods for export to another country. The Schedule B is based on the international Harmonized System of 6-digit commodity classification codes. There is a Schedule B number for every physical product, from paperclips to airplanes.

Why do I need a Schedule B number?  Schedule B numbers are used by the Foreign Trade Division to collect and publish the U.S. export statistics. Schedule B numbers are required to be reported in the Automated Export System when shipments are valued over $2,500 or the item requires a license.

How do I get one? You can find your Schedule B number using the online Schedule B Search. My colleague Justin wrote an earlier blog post on how to use the search.  For even further guidance, watch our training video below.  If you need export classification assistance, email ftd.scheduleb@census.gov or call 1-800-549-0595, Menu Option #2.

Don’t forget! Every physical good has a Schedule B number. Join us in our efforts to maintain accurate trade statistics, and classify your product using the correct Schedule B number. 


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Survey Says…

Posted on October 17, 2012 by rosannatorres

Tell Us What You Think!

Just a few weeks ago we sent out the 2012 Foreign Trade Division Customer Service Survey. Through this survey, we find out what you think about our customer support tools and services. Your responses gives us an opportunity to understand how we can better assist you in the future.

The Automated Export System (AES) is the electronic filing system that the U.S. Census Bureau and U.S. Customs and Border Protection have established to process Electronic Export Information. If you have used our tools and services, feedback about your satisfaction is greatly appreciated.

Complete the survey

Please take a few minutes to complete this survey. Your answers will be used solely to help us make informed decisions about improvements to our resources and services. Your feedback will inspire action!

Last day to complete the survey is Wednesday, October 31st.

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Imports and Exports Decrease Slightly in August

Posted on October 11, 2012 by katrinarosen

By Sean

As some of our most ardent followers probably know already, we just released our August trade statistics.  The numbers indicate that the deficit in goods and services increased from $42.5 billion (revised numbers for July) to $44.2 billion in August.

Exports Decreased to $181.3 Billion While Imports Waned to $225.5 Billion (Goods & Services)

Exports decreased by $1.9 billion due largely to decreases in industrial supplies and materials ($1.2 billion) as well as foods, feeds, and beverages ($1.1 billion).  These decreases were slightly offset by a $0.4 billion increase in capital goods.  The $0.2 decrease in imports is attributed to a decrease in consumer goods ($1.2 billion) and automotive vehicles, parts, and engines ($0.8 billion).  It is important to note, however, that there were increases in imports of industrial supplies and materials ($1.5 billion).  For more information, click here.

Exports to India Reach New Heights

In one of our previous blogs, we highlighted India as a National Export Initiative Priority Market and apparently some of you were paying attention because exports to India hit a record high of $2.1 billion in August.  As you can see below, I’ve graphed U.S. exports to India over the past 3 years.  If you would like even more detailed data on the commodities that have experienced the largest gains, I suggest you take advantage of a free trial of USA Trade Online.  This type of detailed data is available not only for India but for our other 233 trading partners as well.  In addition, the U.S. Commercial Service also offers resources for companies that are looking to export to India at export.gov/india.  Happy exporting!

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Survey of Business Owners, Meet the Profile.

Posted on October 3, 2012 by rosannatorres

By: Ryan

Just recently I learned that in 2007, out of a sample of 198,081 exporting firms (there were 268,526 identified exporters that year), 81.1 percent of the total export value by Hispanic-owned firms within this sample was accounted for by trade with Latin American countries. For nonminority-owned firms, trade with Latin American countries was only 15.1 percent of the total export value. A similar trend can be found in this sample for Asian-owned firms and export trade with Pacific Rim countries.

These statistics on minority-owned exporting firms are straight out of the “Ownership Characteristics of Classifiable U.S. Exporting Firms: 2007” report. This report is a product of the combined data in the 2007 Profile of U.S. Exporting Companies (the Profile) and the 2007 Survey of Business Owners (SBO), the latter of which is conducted every five years as part of the Economic Census. Joining the information in this survey to the Profile allows for exporting firms to be detailed by four additional characteristics that are not in the Profile, namely gender, ethnicity, race, and veteran status. The “Classifiable” firms that the title of the report refers to are non-farming firms that are not publicly owned and are also in-scope for the SBO.

Here are a few quick statistics on classifiable firms versus all firms:

  • The report sample includes 198,081 of the 268,526 identified exporters in 2007
  • 163,419 of the firms in this sample are classifiable firms
  • Classifiable exporters account for 82.5% of identified exporters in 2007 and 17.6% of the total known export value for 2007
  • Classifiable exporters account for only 0.6% of all classifiable firms in the U.S. in 2007
  • Average receipts for classifiable exporting firms in 2007 were $16.8 million, whereas average receipts were $313,689 for classifiable non-exporting firms

The report, which you can find a link to below, largely focuses on how exporting firms within the categories of these four company characteristics perform compared to their non-exporting counterparts. There is an interesting highlights section that contains some of the statistics I referenced here, and plenty more. You’ll also be able to look at the data tables, which detail exporting and non-exporting firms by all categories of the four company characteristics from the SBO, as well as company size and export-destination information from the Profile.

2007 Ownership Characteristics of Classifiable U.S. Exporting Firms Report

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What Is A Used Vehicle?

Posted on September 26, 2012 by rosannatorres

By: Eric

It is always a great moment when you buy a car. It does not matter if it’s used or the dream car that you always wanted since you were a kid. Even if it has over 100,000 miles, the first time you open its doors, you still get that “new car smell” and treat it as a brand new car. That brings me to today’s topic: how to determine what is a used car in the Automated Export System (AES).

How does AES define a Used Vehicle?

A used vehicle, according to Customs and Border Protection CFR 192.2, is defined as “any self-propelled vehicle the equitable or legal title to which has been transferred by a manufacturer, distributor, or dealer to an ultimate purchaser.”

What does that mean? It means that unless you’re buying a car directly from the manufacturer, it’s used. That’s right, a car coming out of the dealership is used. Another example of a used vehicle (for AES purposes) would be if you bought a vehicle online and have not even seen it physically yet.

Now that you have determined that your car is considered a used vehicle for the AES, what would be required to complete the Electronic Export Information (EEI)?

In AESDirect, you need to select “Yes” under the question “Is this commodity a Used Vehicle?”

Then complete the fields:

  • VIN/Product ID: Provide the Vehicle Identification Number. If not available, you can submit a Product Identification Number for the vehicle.
  • ID Type: Identify the type of identification number reported
  • Vehicle Title Number: Report the title number for the car
  • Vehicle Title State: Indicate the state where the title was issued

If you do not provide this information, the system will not allow you to submit your EEI.

Only certain Schedule B numbers will allow you to report used vehicles and to complete those additional fields. See Rosanna’s post on this.

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A Tool for Foreign Trade Zones

Posted on September 19, 2012 by rosannatorres

By: Archie

If you want to know why Foreign-Trade Zone programs are important to the U.S. economy, try OFIS.

OFIS stands for Online Foreign-Trade Zone Information System. The program was demonstrated at the 2012 National Association of Foreign Trade Zones (NAFTZ) Spring Seminar in Atlanta, GA and provided valuable industry information on zones, grantees, sites, subzones and Federal Register notices. The website’s easy access, user friendliness and helpful features, saves time when looking up FTZ information.   What a useful tool!

OFIS has a search feature that allows you to enter a keyword or phrase. Furthermore, the system will allow Grantees and Operators to update their information and submit annual reports to the FTZ Board. Under the Department of Commerce, the International Trade Administration-Import Administration is the lead agency for collaborating with the Foreign Trade Zones Board and responsible for maintaining the OFIS website.  It’ s your one-stop shop for FTZ information.

You can visit the OFIS website at: http://ita-web.ita.doc.gov/FTZ/OFISLogin.nsf. Check it out!

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