Understanding HTS Codes
The Harmonized Tariff Schedule (HTS) code determines the duties you pay. Here's how to find the right classification for your products.
What is an HTS Code?
The Harmonized Tariff Schedule (HTS) is a standardized system of numbers used to classify traded products. In the US, HTS codes are typically 10 digits:
The first 6 digits are internationally standardized (HS code). The remaining digits are country-specific and determine the exact duty rate.
Why HTS Classification Matters
Determines Duty Rate
The HTS code directly determines how much duty you pay. A misclassification can mean overpaying—or underpaying and facing penalties.
Trade Agreement Eligibility
USMCA and other trade agreements have rules of origin tied to HTS codes. The right classification can qualify your goods for duty-free treatment.
Compliance Risk
CBP audits classifications. If they find errors, you may owe back duties, interest, and penalties—sometimes going back 5 years.
How to Find Your HTS Code
1. Use the Official HTS Search
The US International Trade Commission maintains the official database at hts.usitc.gov. Search by product description or browse by chapter.
2. Check Your Supplier's Documentation
Your supplier may already have classified the product for previous shipments. Check commercial invoices or ask for their suggested HTS code.
3. Request a Binding Ruling
For complex products or high-value shipments, you can request a binding ruling from CBP. This gives you legal certainty about the classification.
4. Work with a Licensed Customs Broker
A customs broker can help you classify products correctly and defend the classification if questioned. This is especially important for products that could fall into multiple categories.
Common Classification Mistakes
Avoid These Errors
- •Using an old code — HTS codes change annually. Always verify against the current year's tariff schedule.
- •Classifying by use instead of material — HTS follows specific rules. Sometimes material matters more than function.
- •Copying a competitor's classification — Their product may differ slightly, resulting in a different code.
- •Ignoring sets and kits — Items sold together may classify differently than items sold separately.
Frequently Asked Questions
What's the difference between HS and HTS codes?
HS (Harmonized System) codes are the first 6 digits and are used internationally. HTS codes add 4 more digits specific to US tariffs.
Can the same product have different HTS codes?
Yes, depending on specific characteristics like material composition, size, or whether it's part of a set. This is why precise product descriptions are essential.
What if I'm not sure which code to use?
Work with a licensed customs broker or request a binding ruling from CBP. The cost of getting it right is far less than penalties for getting it wrong.
Do HTS codes affect USMCA eligibility?
Yes. USMCA rules of origin are defined by HTS code. The correct classification is necessary to claim preferential treatment.
Need Help with Classification?
Our customs brokers can help you classify your products correctly and ensure compliance with US and Mexican customs requirements.