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Commodity Classification: The Harmonized Commodity Description and Coding System (known as the Harmonized System or the HS) is a multipurpose goods nomenclature used today by more than 200 countries, territories, and economic unions as the basis for their Customs tariffs and for the compilation of international trade statistics. All traded commodities are classified using the HS. The HS is a highly structured nomenclature comprising a series of 4-digit headings, most of which are subdivided into 6-digit subheadings. The headings are grouped into 96 Chapters which are themselves arranged into 21 Sections. Most of the sections and chapters contain Notes which form an integral part of the HS and have the same legal force. These notes serve to define the precise scope and limits of each unit. In an effort to ensure that any commodity can always be simply and clearly assigned to a specific heading, to the exclusion of all others, the HS incorporates a series of rules upon which all classification decisions must be based.
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