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