When importing goods into the United States, understanding the Harmonized Tariff Schedule (HTS) code is essential. Incorrect classifications can lead to unexpected duties, delays at customs, or even penalties. So, what exactly is an HTS code — and why should importers care?
What Is a Harmonized Tariff Code (HTS)?
The Harmonized Tariff Schedule of the United States (HTS or HTSUS) is the system used to classify imported goods. It is administered by the U.S. International Trade Commission (USITC) and aligns with the international Harmonized System (HS) developed by the World Customs Organization (WCO).
Every product imported into the U.S. must be assigned a 10-digit HTS code.
- The first six digits are the universal HS code used globally.
- The final four digits are U.S.-specific and determine tariffs, quotas, and trade program eligibility.
Example:
- HS Code (first 6 digits): 0901.21 (Coffee, roasted, not decaffeinated)
- HTS Code (10 digits): 0901.21.0020 (Arabica coffee, certified organic)
Why Do HTS Codes Matter?
HTS codes do more than just check a box—they directly impact duty rates, compliance risk, and overall supply chain efficiency. Here’s how:
1. They Determine the Duty You’ll Pay
Tariffs are based on HTS classification. If the code is wrong, you could be overpaying—or underpaying, which may lead to retroactive penalties or trigger a customs review.
2. They Affect Eligibility for Trade Programs
To take advantage of duty-free or reduced rates under programs like USMCA or the Generalized System of Preferences, your goods must be classified accurately.
3. They’re Required for Entry Filing
U.S. Customs and Border Protection (CBP) requires a valid HTS code for all imports filed through the Automated Commercial Environment (ACE). Inaccurate codes can delay release or trigger audits.
Common HTS Code Mistakes (and How to Avoid Them)
- Using outdated codes: The HTS is updated regularly. Ensure you’re referencing the latest version published by the USITC.
- Guessing based on product name: Classification depends on product specs, not just the label.
- Not using expert guidance: Work with an experienced logistics partner like MTA, to assist you with customs brokerage to verify classifications, especially for complex or new products.
How to Find the Right HTS Code
- Use the HTS Search Tool to browse by keyword or product category
- Review your product specs: Think composition, function, and country of origin
- Request a binding ruling from CBP if unsure—especially for high-value or high-volume items
HTS vs HS vs Schedule B: What’s the Difference?
| Code Type | Used For | Maintained By |
| HS Code | Global base (6 digits) | World Customs Organization |
| HTS Code | Imports into the U.S. (10 digits) | U.S. International Trade Commission |
| Schedule B Code | U.S. exports | U.S. Census Bureau |
Why this Matters for Your Business
Whether you’re importing auto parts, apparel, electronics, or agricultural products, accurate HTS classification ensures:
- Compliance with U.S. trade laws
- Optimized landed costs
- Faster customs clearance
- Reduced risk of audits or delays
As supply chains grow more complex, staying on top of classification rules isn’t just smart, it’s necessary.
Need Help Navigating Tariff Classifications?
If you’re unsure whether your goods are properly classified, it’s worth speaking with an experienced logistics partner like MTA. Contact our team to help you ensure that your classifications are correct.
For more on tariff codes, check out the USITC’s HTS resource or visit Trade.gov for a global overview.
