Harmonized System

I don't think we really have a lot of records from those days.

In the Harmonized system, the codebook every trader lives by, not me, but everyone else, chapter 93 covers arms and ammunition, which I guess is pertinent for today's-

These days

... episode.

It's also this high-tech materials and components that are coming in to fuel this data center boom.

So I want to pull up this HS Codes chart, and it's a little bit down for Isaiah and everybody to pull up.

There we go.

It's a nice pie chart.

And furniture was a surprising commodity to show up as a citation here.

And you can see it on this chart in the pink, or the green actually.

On the left side, that's the furniture import side of the HS codes, huge chunk.

And we've been talking about a weak housing market for a long time.

Number one is the general rules of interpretation.

The general rules of interpretation are six little rules, six tiny little rules written by the World Customs Organization when they wrote the harmonized system.

And these, because they were written by the World Customs Organization, they're international.

Me and my trading partner in Portugal, we both have the same GRIs.

Sure.

And also in terms of custom classification, which is something I've been reading up about, I mean, what is HS classification and why is it a challenge?

Every product that exists is classified and a HS code starts with six universal digits, which puts it into a category.

Those six digits, universal.

If you're sending this water bottle that i have here if you're sending this to south africa if you're sending it to the united states if you're sending it to japan wherever you're sending that water bottle those first six digits will be universally understood and will categorize that product to whichever country you're sending Beyond that, countries add additional digits to the six.

Bolivia has six additional digits.

So immediately you can see whenever sending this water bottle around the world, not only must you know the six universal, but then you must know the destination's unique set of digits which are tagged onto that.

Once you have your HS codes, that is step one.