Classification

Assign 6 or 8 Digit HTS Codes

In addition to the standard assignment of harmonized schedule 10-digit codes, GTM supports the assignment of 6- or 8-digit codes to items, trade transactions, declarations and item structures.

In some instances, you may want to assign a code other than the 10-digit code to business objects in GTM. For example, one of the items that you are importing is wrist watches. The watch consists of a movement, case, band, and battery. In the harmonized tariff schedule for the US, this is modeled as follows:

  • A watch with one jewel has a product classification code at the 8-digit level with the code being 9101.11.80. The parts that make up the watch all have product classification codes at the 10-digit level:
  • Movement has a code of 9101.11.4010
  • Case has a code of 9101.11.4020
  • Strap, band or bracelet has a code of 9101.11.4030
  • Battery has a code of 9101.11.4040

As part of your business process, your company may only assign the harmonized schedule 6-digit code to the watch and all of the components. In other instances, with a bill of material that is driven by the tariff, the 8-digit code needs to be assigned to an item. In the item structure your company may require the 10-digit codes at the component level.

To support the ability to assign codes at levels other than the 10-digit level, GTM needs to receive this data from the third party data provider in a specific format. All levels of the harmonized tariff  including the 2-digit, 4-digit, 6-digit, 8-digit, and 10-digit are supported. The various levels of other tariffs are also supported.

 For example, the product classification code 9101.11.80 has been assigned to the watch. You can then create an item structure to represent the movement, case, strap and battery that are modeled at the 10-digit level. The item structure can be associated to an item to show an item and all its components.

In addition for a transaction or declaration line for the same item, you can assign an HTS product classification code that is at the 8-digit level. As with the item, you could stop here or, if your business has a bill of material structure associated with your items, you could associate an item structure to the line to represent the bill of materials.

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