CE CE Customs & Tariff Classification

Question 1

What is the Harmonized System (HS) code and how many digits are in the internationally standardized portion?

Accepted Answer

A globally recognized product classification system using 6 standardized digits

Answer

A U.S.-only classification system using 10 digits

Answer

A shipping code assigned by freight forwarders

Answer

A customs broker license number

Question 2

In the U.S., what is the Schedule B number used for by exporters?

Accepted Answer

To classify exported goods for U.S. Census Bureau statistical reporting on the EEI

Answer

To identify the country of origin

Answer

To declare the value of imported goods

Answer

To obtain an export license

Question 3

What is the Harmonized Tariff Schedule of the United States (HTSUS) primarily used for?

Accepted Answer

Classifying imported goods to determine applicable tariff rates and trade statistics

Answer

Classifying exported goods for AES filing

Answer

Determining export license requirements

Answer

Setting freight rates for ocean shipping

Question 4

What are the six General Rules of Interpretation (GRI) used for in tariff classification?

Accepted Answer

To provide a systematic hierarchy for classifying goods when a product fits multiple HTS categories

Answer

To calculate ad valorem duties

Answer

To determine country of origin

Answer

To establish product safety standards

Question 5

What is an 'ad valorem' tariff?

Accepted Answer

A tariff calculated as a percentage of the value of imported goods

Answer

A flat fee charged per unit or weight of goods

Answer

A tariff that combines a percentage and a flat fee

Answer

A tariff applied only during anti-dumping investigations

Question 6

What is a binding tariff ruling (BTR) and why would an exporter request one from a foreign customs authority?

Accepted Answer

A legally binding advance decision on how goods will be classified, providing certainty before shipping

Answer

A penalty imposed for misclassifying goods at the border

Answer

An agreement to reduce tariffs under a bilateral trade deal

Answer

A pre-approval to export controlled goods