What Are HTS (Harmonized Tariff Schedule) Codes?

What Are HTS (Harmonized Tariff Schedule) Codes? A Complete Guide for Importers and Exporters

When it comes to international trade, understanding HTS codes (Harmonized Tariff Schedule codes) is essential for any business involved in importing or exporting goods. Whether you're a small online seller or a global logistics expert, getting these codes right can save time, reduce costs, and ensure compliance with customs regulations.

In this article, we’ll explain what HTS codes are, why they matter, and how to use them correctly.

What Are HTS Codes?

HTS codes, or Harmonized Tariff Schedule codes, are numerical classifications used by countries to identify and categorize imported and exported goods. In the United States, these codes are governed by the U.S. International Trade Commission (USITC) and are based on the global Harmonized System (HS) developed by the World Customs Organization (WCO).

Each HTS code consists of 10 digits, where:

• The first 6 digits are universal (same in all countries under the HS system)

• The remaining 4 digits are country-specific (used for further classification and duty assessment)

Why Are HTS Codes Important?

Using the correct HTS code is crucial for several reasons:

1. Customs Compliance

Incorrect HTS codes can lead to fines, shipment delays, or even the seizure of goods. U.S. Customs and Border Protection (CBP) uses HTS codes to verify that products are accurately declared.

2. Determining Import Duties

The HTS code determines the tariff rate applied to an imported item. Using an incorrect code could result in overpaying or underpaying duties.

3. Trade Statistics and Regulations

Governments use HTS codes to track trade data, apply trade agreements, and enforce import restrictions or quotas.

4. Eligibility for Free Trade Agreements

Correct HTS codes help determine if your product qualifies for reduced duties under agreements like USMCA, CAFTA, or others.

HTS vs. HS vs. Schedule B Codes

Code TypeDigitsPurposeUsed ByHS Code6Global product classificationAll WCO countriesHTS Code10U.S. import classificationU.S. importersSchedule B Code10U.S. export classificationU.S. exporters (Census Bureau)

Tip: While HTS and Schedule B codes can look similar, always use the right one for the context—HTS for imports, Schedule B for exports.

How to Find the Right HTS Code

Here’s how you can identify the correct HTS code for your product:

1. Use the USITC’s HTS Search Tool
   Visit https://hts.usitc.gov/ and search by keyword or product description.

2. Consult a Customs Broker or Freight Forwarder
   Professionals can ensure accurate classification and compliance.

3. Check Product Samples and Descriptions
   Product composition, function, and material all affect classification.

Common Mistakes When Using HTS Codes

Avoid these costly errors:

• Guessing the code without proper research

• Using outdated HTS versions

• Copying codes from unrelated products

• Failing to update codes after product changes

Final Thoughts

HTS codes are more than just numbers—they’re a critical part of the global supply chain. By understanding and using the correct Harmonized Tariff Schedule codes, businesses can reduce risks, avoid penalties, and streamline their import/export operations.

✅ Pro Tip:

Always stay updated with annual HTS revisions. The U.S. HTS is updated regularly to reflect changes in trade policies and technology.

Keywords:

HTS codes, Harmonized Tariff Schedule, import duties, U.S. customs, HS codes, Schedule B, international trade, trade compliance, customs classification, HTS code lookup