INTERNATIONAL TRADE LAW
Classifying Your Goods for Export: Schedule B & HTS
The United States does not impose tariffs on exports — the Constitution forbids it — so “exporting under a tariff classification” really means classifying your goods correctly for export reporting and control. The U.S. Constitution (Article I, Section 9) bars any “Tax or Duty” on articles exported from a state. What an exporter actually owes is an accurate commodity code on its export filings, plus a check on whether the item is controlled. Get those right and your shipment clears; get them wrong and you face delays, rejected filings, and penalties.
This is the single most common confusion exporters carry over from the import world. On imports, the classification sets a duty rate. On exports, classification sets reporting and licensing obligations, not a U.S. tax.
Three Codes Exporters Confuse
Exporters routinely mix up three different numbers because they all start from the same international system. They answer different questions:
| Code | Question it answers | Authority |
|---|---|---|
| Schedule B | How is this product classified for U.S. export reporting? | U.S. Census Bureau |
| HTS (HTSUS) | What duty applies when this product is imported into the U.S.? | U.S. International Trade Commission |
| ECCN | Is this product subject to export controls or licensing? | Bureau of Industry and Security |
All three build on the Harmonized System (HS), the World Customs Organization framework that standardizes the first six digits worldwide. The Schedule B and HTS then add U.S.-specific digits. For most commercial exports you may report either the 10-digit Schedule B number or the 10-digit HTS number — Census accepts both — but they are not identical in every case. See our deep dive on Schedule B numbers.
Who Pays Duties on an Export
If no U.S. export tariff exists, where do duties come from? They are charged by the destination country when your goods arrive as imports there, under its tariff schedule. Your buyer (or you, if you sold on DDP terms) pays them. Your classification still matters because:
- The importing country uses the same first six HS digits to assess its own duty.
- Trade agreements can reduce or eliminate the destination duty — but only if the goods qualify and are documented correctly.
- A wrong code on your end can cascade into a wrong entry on the buyer’s end.
So you are not classifying to pay a U.S. tax. You are classifying so the export filing is accurate and the buyer’s import clears smoothly.
How to Assign the Right Code
Classification follows the structure of the schedule, top down:
- Describe the product precisely — composition, function, and how it is presented for sale. These drive classification more than the marketing name.
- Use the Census Schedule B Search tool. The Census Bureau publishes a free online engine that walks a plain-language description to a code.
- Read the chapter and heading notes. They include and exclude specific goods and resolve most close calls; the General Rules of Interpretation control genuine ambiguity. The same logic governs the import side in our HTS classification guide.
- Document your reasoning. Keep a short written record for each product so the basis is defensible if Census or CBP asks.
Don’t Stop at the Commodity Code
A correct Schedule B number tells you how to report the export. It does not tell you whether you may make the export. That is the ECCN question, and it is separate. An ordinary-looking product can still be controlled — see classifying dual-use goods. Always run both determinations.
Frequently Asked Questions
Does the U.S. charge tariffs on exports?
No. Article I, Section 9 of the Constitution prohibits taxes or duties on articles exported from any state. Tariffs on your goods are charged by the importing country, not the United States.
What is the difference between Schedule B and HTS codes?
Schedule B classifies U.S. exports for the Census Bureau; the HTS classifies imports into the U.S. and sets duty rates. They share the same first six digits, and for most exports you may report either 10-digit code.
Do I need to classify low-value exports?
Even if a shipment falls below the $2,500 EEI filing threshold, the importing country will still classify your goods on entry, and a controlled item must be screened regardless of value. Classify everything.
Who is responsible if the code is wrong?
The exporter. Census and the Bureau of Industry and Security can assess civil penalties for inaccurate filings, so the few minutes spent classifying correctly is cheap insurance.
Accurate classification is the foundation of a compliant export program. Reidel Law Firm advises U.S. exporters on classification, licensing, and filings on flat-fee terms. Get an export compliance memo.
