An HTS code is a unique 7-10 digit number used to classify specific imported products. The length of the HTS code varies from country to country. HTS codes used in the U.S. are 10 digits.
The first 6 digits of the HTS code are derived from the HS (Harmonized System) code. The Harmonized System is maintained by the WCO (World Customs Organization) and followed by all participating countries.
HTS codes are used in a variety of ways, all in relation to international trade.
In the United States, HTS codes are used in the following ways:
When importing into the U.S. importers are required to provide accurate HTS codes for their imported goods. CBP (Customs and Border Protection) agents use the HTS code to calculate and assess import duties and determine product compliance.
Using USA Customs Clearance’s HTS code lookup tool is one of the simplest and easiest ways to find your HTS code. You simply input a product’s name, description, or the first 4 digits of HS code into the search bar and the tool will pull up a list of potential matches for the item you’re looking for. Each match includes a description of the product and its corresponding HTS code.
The tool can also be used to double-check HTS codes to confirm that they’re accurate. For example, if your supplier provided you with an HTS code, you can simply type in the 10-digit code they gave you, and the tool will pull up an exact match for that code, as well as related search results.
Once you have your match, read over the product description, tariff requirements, and any other information listed to ensure that it matches the product you intend to import.
An HS (Harmonized System) code is simply the first 6 digits of an HTS code. That means you can find your HS code the same way you would find your HTS code.
Using an HTS code lookup, input the name or description of the product you want the HS code for. When you’re given the corresponding commodity codes, you would simply use the first 6 digits of the code instead of the full seven to 10 digits that make up the complete HTS code.
Chapter 09
Any coffee, tea, or spice products
Heading 02
Applies to both flavored and unflavored teas
Subheading 10
Includes non-fermented green tea in packaging of 3kg or less
Tariff Code 10
Identifies country-specific duty rate
National Heading 15
An optional further breakdown of the commodity ie. certified organic
Digits 1 and 2 (HS Chapter)
These numbers note the chapter within the HS nomenclature that applies to the goods. There are 99 total chapters within the HS, broken down into 21 sections. These sections and chapters represent the broadest categories that products can be classified under.
For example, all coffee, tea, and spices are classified under chapter 9. Therefore, the HTS code for any coffee, tea, or spice products will begin with 09.
Digits 3 and 4 (HS Heading)
These digits represent the specific heading within the broader chapter of the HS.
For example, the heading for the HTS code above is 02 which applies to both flavored and unflavored tea. Chapter headings follow a numeric order beginning with 01, continuing with 02, and so on until there are no more headings. There is no limit to the number of headings included within each chapter.
Digits 5 and 6 (HS Subheading)
These numbers represent the subheading within the specific heading. In short, an additional subcategory of a larger category.
In the example above, the subheading is 10 which includes non-fermented green tea in packaging of 3kg or less. Some HS and HTS codes will have 00 as their subheading which indicates there are no further category breakdowns within the HS for that particular commodity.
Digits 7 and 8 (Tariff Code)
Digits 7 and beyond are used to identify country-specific information. In the U.S. digits 7 and 8 signal the specific import duty rate for the product. For example, the HTS code above is subject to an import duty rate of 6.4% of the value of the goods from countries in which the U.S. has no trade agreement.
However, a product classified as 0902.10.90 has a zero, or free, import duty rate applied to it. The difference between the two products in this case is noted by different numbers for digits 7 and 8 and is different enough to warrant a different rate of duty.
Digits 9 and 10 (National Heading)
The final two digits of an HTS code are present to identify an optional further breakdown of the commodity. As noted earlier, the U.S. uses 10 digit HTS codes. However, many commodities contain 00 for digits 9 and 10. This occurs when there is no further breakdown of the commodity beyond the duty rate digits for 7 and 8.
When there is a unique value for digits 9 and 10, it is typically used for statistical reporting. In some cases, though, the final 2 digits are used to signal important information to CBP agents or representatives from PGA’s.
In our example above, the last two digits indicate that the green tea is organic. When the HTS code changes to 0902.10.10.50, this shows that the tea is not organic. However, the rate of duty for both remains the same.
While it’s nice to know how to read and understand HTS codes, it’s not a necessity if you’re working with a Customs Broker. Licensed Customs Brokers have extensive knowledge and experience when it comes to understanding HTS codes. If you’re tired of spending hours and hours analyzing HS codes and making sure you have the right one, our experts are here to help you.
The two most reliable ways of finding an HTS code are to use a commodity code lookup tool, like the one that we have on this page, or to consult with a licensed customs broker. The search tool will require you to do a little more work on your own, while a customs broker will cost you up front, but can ensure that your information is accurate.
We’ve already explained how to find your HTS code using a lookup too, but to recap, simply search for your commodity’s name or description and the tool will return a list of results that match your product.
Licensed import consultants, or customs brokers, are another resource that importers can use to find their HTS codes. Customs brokers are experts in international trade and can walk you through the ins and outs of the entire import process.
Having the correct HTS code is critical to the import process. By working with a Licensed Customs Broker, you can be sure that you always have accurate information regarding product classification, tariff requirements, and government restrictions on the product you’re looking to import.
You, the importer, are always liable for any issues that may come from providing the wrong HTS code. Be sure that whether you plan to use a search tool or hire a customs broker that you always have the most accurate information.
HTS classification can vary based on a number of factors, including a product’s composition, its form and its function. As a result, it can be difficult to pinpoint exactly how your product should be classified.
By using the HTS search lookup tool, you should be able to find your product’s correct HTS code. After inputting a product name or keyword, the tool will pull up a list of matches that you can use to verify that you have the correct code.
It’s possible to use the General Rules of Interpretation to narrow down your search as well. The GRI governs the classification of all products and provides a guideline for assigning International Harmonized System (HS) codes.
Customs brokers are also a reliable resource for confirming whether or not the HTS code you are using is correct. Customs brokers and import consultants are experts in tariff classification and can ensure that you’re using the correct HTS code.
If you’re still having trouble, you can reach out to Customs and Border Protection to get confirmation. CBP is able to offer a binding ruling on product classification and duty requirements, eliminating any opportunity for error.
HTS codes and Schedule B codes are both comprised of 10-digits and contain matching HS codes, however, they are used for different purposes. HTS codes are used for importing items while Schedule B codes are used to export items to another country.
Every country has their own unique HTS codes, while Schedule B codes are used exclusively in the U.S. While both codes include matching HS codes, they can differ at the 7-10-digit level. There are also more HTS codes than there are Schedule B codes.
International Harmonized System codes are universal, however, HTS codes are not. Six-digit HS codes are recognized all around the globe, but 7-10-digit HTS codes are unique to specific countries. There are currently 183 countries and territories that recognize HS codes.
The International Harmonized System, which is the basis for all HTS codes, was developed by the World Customs Organization (WCO) in 1988. That organization continues to maintain and update the codes in order to provide a standardized commodity classification system of all internationally traded products.
HTS codes in the United States are 10 digits and called HTSUS codes. HTSUS codes are administered by the U.S. International Trade Commission (ITC) and they provide the information needed to calculate the duty required on all imported commodities into the U.S.
According to the U.S. Census Bureau, there are around 19,000 HTS codes. HTS codes are incredibly detailed in order to differentiate between various versions of similar products.
This level of distinction allows different duty rates, government oversight, and general classification to be attributed to specific products even when they may be similar to products with different specifications. That’s why it’s so important to make sure you use the correct HTS code when importing, otherwise you may be paying an incorrect tariff amount on your shipment.
