Harmonized System
Commodity Classification: Both export and import statistics
are classified and published according to the Harmonized Commodity
Description and Coding System (Harmonized System or H.S.).
The Harmonized System used in this database is an international
commodity classification (six digit) developed under the auspices
of the Customs Cooperation Council. It was extended to ten digits
for imports to serve as the basis for Customs tariffs and international
trade statistics. For export purposes, the international six digit
"root" was extended to eight digits. Canada adopted
this system to replace the "Customs Tariff Schedule",
as well as the "Canadian International Trade Classification"
(CITC) and the "Export Commodity Classification" (XCC).
The Harmonized System is based on a fundamental principle that
goods are classified by what they are and not according to their
stage of fabrication, use, made in Canada status, or any other
such criteria.
The Harmonized System nomenclature is logically structured by
economic activity or component material. For example, animals
and animal products are found in one section; machinery and mechanical
appliances which are grouped by function are found in another.
The nomenclature is divided into 21 Sections, which, in general,
group goods produced in the same sector of the economy. For example,
Section IV, "Prepared Foodstuffs; Beverages, Spirits and
Vinegar; Tobacco and Manufactured Tobacco Substitutes" (i.e.
agricultural products) and Section VI, "Products of the Chemical
or Allied Industries" etc. (i.e. chemical products, etc.).
Each Section is comprised of one or more Chapters, with the entire
nomenclature being composed of 97 Chapters (Chapter 77 is reserved
for possible future use). The Chapters of Sections I to XV (except
Section XII) are grouped by Biological Genus (Section I,
Chapters 1-5 Live Animals, Animal products, fish, Dairy products
etc.) or by the Component Material from which articles
are wholly or mainly made (e.g. Section VIII contains Chapter
41 - Raw Hides and Skins; Chapters 42 - Articles of Leather,
etc.)
In Sections I to XV (except Section XII), the groups of products
formed according to their basic material are structured or divided
in two ways:
Horizontal - For the groups of products formed according
to their basic material, there is no apparent hierarchial order
(e.g. Chapter 39 - "Plastics and Articles Thereof";
Chapter 44 - "Wood and Articles of Wood); i.e. there is
no discernable reason that plastic should precede wood.
Vertical - For those chapters in which goods are grouped
by raw material, there is, however, a vertical structure in which
articles are often classified according to their degree of processing.
For example, Chapter 44 contains items such as rough wood, wood
roughly squared and some wooden finished products such as wooden
tableware.
Articles may also be classified according to the use or function.
This classification (i.e. by function), mainly occurs in Section
XII and Sections XVI - XXI. For example, Section XVII contains:
Chapter 86 - Railway Locomotives, etc. Chapter 87 - Vehicles other than Railway, etc. Chapter 88 - Aircraft, etc.
Chapter 89 - Ships, etc.
In order to illustrate the hierarchial structure of the H.S.,
the following example is given: 06 - Chapter
Live trees and other plants; bulbs, roots and the like; cut flowers
and ornamental foliage; 06.01 - Heading
Bulbs, tubers, tuberous roots, corms, crownsandrhizomes,dormant,
in growth or in flower; chicoryplants and roots other than roots
of heading no. 12.12; 0601.10 - Subheading
Bulbs, tubers, tuberous roots, corms, crowns and rhizomes,
dormant; 0601.10.11 - Tariff Item
Bulbs of the genus narcissus; 0601.10.11.10 - Statistical annotation
Daffodil
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