Classification Scope and Challenges
The United States has implemented two different Commodity classification systems, the Export Control Classification Number (ECCN or ECN) classification for exports and the Harmonized Tariff System (HTS or HS) classification for imports and exports.
This white paper primarily reviews the issues and challenges companies face in ensuring that the right commodity classification is used in their export and import documentation. It then lists some capabilities that should be considered in a software solution. These capabilities can streamline this process while reducing the risk of shipment delays for importers and missed shipment dates or fines and penalties for exporters.
In summary, Commodity Classification is one of the most important components of a sound global trade management program. It is needed for current regulations as well as to leverage other programs such as Free Trade Agreements. Because of this, companies who successfully manage their commodity classifications and product catalogs are well positioned to manage new regulations and compete strategically in the global marketplace.
