What is an HTS Code? A Complete Guide for Importers and Exporters

In global trade, accurate product classification can be the key to keeping your supply chain running smoothly. One crucial system that importers in the United States must understand is the HTS Code. From importers of electronics to global suppliers of industrial machinery, understanding your HTS Code is essential for hassle-free customs clearance, precise duty assessments, and full compliance with United States’ trade regulations.

In this guide, we’ll break down what an HTS Code is, walk you through how to identify the correct one for your products, and clarify its connection to the global HS Code. We’ll also provide some insider tips to help you sidestep common errors in classification.

What is an HTS Code?

An HTS Code (Harmonized Tariff Schedule Code) pertains to a 10-digit import classification code used by the United States to categorize goods imported into the country. It is based on the international Harmonized System (HS) Code but includes additional digits to meet the USA’s import requirements.

The HTS Code begins with the same six digits as the international HS Code, but its final four digits are unique to the United States, offering more precise classification for tariff purposes. Maintained and published by the U.S. International Trade Commission (USITC), the HTS serves as the country’s official tariff schedule. If the HS Code is like getting your shipment to the correct country and city, the HTS Code pinpoints the exact street and mailbox, giving U.S. Customs and Border Protection (CBP) the detailed data they need to clear your goods efficiently.

Its primary functions are to:

Identify the exact duty rate applicable to each imported product.
Gather comprehensive information on all product categories entering the U.S. market.
Administer trade agreements and enforce quotas.

Example:

HS Code: 1006.30 – Rice, semi-milled or wholly milled
HTS Code: 1006.30.1020 – Rice, semi-milled, long grain

The HTS Code determines:

The duty rate for imported goods
Whether goods are subject to quotas or trade restrictions
If any preferential tariff rates apply through trade agreements

HTS vs HS Code: What’s the Difference?

We get this question a lot at TFI. For the record, these codes are not the same—the HTS code is a specific version of the international HS code for the United States of America.

Here’s the breakdown:

HS Code (Harmonized System): A 6-digit global standard created by the World Customs Organization (WCO) and used by more than 200 countries to classify goods.
HTS Code (Harmonized Tariff Schedule): The U.S. 10-digit system that builds on the 6-digit HS code, adding four extra digits for more detailed classification and tariff purposes.

Let’s look at the structure:

Digits 1-2 (Chapter): The broad product category.
Digits 3-4 (Heading): Defines a more specific category within the chapter.
Digits 5-6 (Subheading): Provides an even finer classification of the product. (Together, the first six digits make up the international HS Code.)
Digits 7-8 (U.S. Subheading): This defines the specific U.S. tariff rate.
Digits 9-10 (Statistical Suffix): A reporting code used for trade statistics. While it usually doesn’t impact the duty rate, it is still required.

Example: Sparkling wine produced from grapes.

HS Code: 2204.10 (Recognized globally)
HTS Code: 2204.10.0060 (Required for U.S. import)

Relying solely on the 6-digit HS code for a U.S. import declaration is not enough and can lead to customs rejection.

Who Needs an HTS Code?

You need an HTS Code if:

You bring products into the United States for business or resale
You operate a U.S.-based company importing raw materials, equipment, or finished goods from abroad
You work as a customs broker, freight forwarder, or logistics provider managing U.S. shipments
You are an international seller supplying goods to U.S. buyers and need precise product classification

Even from outside the U.S., understanding your goods’ HTS Code supports accurate pricing, regulatory compliance, and smooth shipment planning.

How Do I Find Out My HTS Code?

It is the importer’s legal duty to identify the correct 10-digit HTS code. It requires careful attention to detail.

Step 1: Gather Every Detail About Your Product

In order to provide accurate classification, you need to fully understand your product. Record its main materials, intended use, key features, and manufacturing process. The more detail, the better.

Step 2: Use the Official HTS Search Tool

The official and most reliable source is the Harmonized Tariff Schedule search tool on the U.S. International Trade Commission (USITC) website, which serves as the master list and is kept current.

Step 3: Navigate the Schedule from Top to Bottom

Start off by pinpointing the appropriate Chapter (for instance, Chapter 85 for Electrical Machinery). From there, navigate through the Headings and Subheadings to determine the full 10-digit classification that best represents your product.

Step 4: Carefully Read All Section and Chapter Notes

This is a step many people miss. The legal notes at the start of each Section and Chapter offer essential definitions, inclusions, and exclusions. They can reveal that a product you assumed belonged in one chapter may, in fact, be classified in another.

Step 5: When in Doubt, Consult an Expert

HTS classification is a complex, legal process. If you’re unsure about your product’s classification, enlist a licensed U.S. customs broker or trade consultant. Their fee is a small investment compared to the potentially significant costs of non-compliance.

What Happens When You Use the Wrong HTS Code?

Incorrect HTS codes can lead to major issues such as:

Incorrect Duty Payments – Classifying products inaccurately can lead to paying too much or facing backdated customs charges.
Duty Errors – Misclassifying products may cause you to pay too much or too little in duties, potentially leading to back payments.
Fines and Penalties – Repeated classification mistakes can result in monetary fines from U.S. Customs and Border Protection (CBP).
Preferential Tariff Loss – Using the wrong classification may forfeit preferential tariff rates offered under agreements such as USMCA or GSP.

How HTS Codes Impact Your Business

With the correct HTS classification, you’re able to:

Avoid customs penalties
Pay the right duties
Qualify for free trade agreements
Plan accurate landed cost estimates
Ensure compliance for restricted or controlled goods

For instance, two seemingly similar products could face different duty rates depending on whether one is labeled “for medical use” and the other “for consumer use.”

Other Important Points About HTS Codes

They are specific to U.S. imports – U.S. exports, by contrast, use Schedule B Codes, which serve a similar purpose for export reporting.
HTS Codes are periodically updated – The USITC issues revisions at least once each year.
They carry legal weight – Regardless of a broker’s assistance, you are ultimately responsible for the accuracy of your classification.
They influence trade statistics – The trade data of the United States is compiled based on HTS Code entries.

Conclusion: Your Key to Compliant U.S. Imports

The HTS code is more than a simple formality—it determines how your products are handled at the U.S. border, influences the duties you owe, and ensures compliance with U.S. trade regulations. By learning its structure, how it differs from the global HS code, and the proper classification process, your business can navigate importing with accuracy and confidence.

At TFI, our customs and compliance specialists assist in identifying the correct codes, optimizing duty costs, and ensuring seamless, compliant clearance for every shipment. Get in touch with our experts now for assistance!

What is an HTS Code? A Complete Guide for Importers and Exporters