HS / HTS Codes

Definition

HS / HTS Codes are standardized numerical product classifications essential for international trade compliance. The Harmonized Commodity Description and Coding System (HS) is the 6-digit universal system established by the World Customs Organization (WCO) for classifying goods.

The Harmonized Tariff Schedule (HTS) is the country-specific extension that utilizes the HS foundation to determine exact import duties and tariffs.

Code Structure and Function

The classification system functions as a detailed language for customs officials globally:

• HS Code (6 Digits): This is the universal standard recognized worldwide, used by U.S. Customs and all other WCO members.

- First two digits: Identify the Chapter in the HS Nomenclature.

- Next two digits: Identify the Heading within that chapter.

- Last two digits: Identify the Subheading within that chapter.

• HTS Code (8-10 Digits): This builds upon the 6-digit HS code by adding country-specific suffixes for detailed tariff administration.

- In the United States, HTS codes are 10 digits long, administered by the U.S. International Trade Commission (USITC).

- The HTS code allows importers to accurately estimate the customs duties payable upon importing goods into the U.S.

Expert Advice

Accurate classification is paramount for avoiding delays and unexpected costs. While your foreign supplier may provide a classification code, strict verification is necessary for US imports:

• Verification: Only the first six digits of a supplier-provided code are universally reliable. Importers must determine the final four digits of the HTS code for U.S. import using the official Harmonized Tariff Schedule.

• Duty Calculation: The HTS code directly impacts the tariff applied to your imported goods. Using the correct 10-digit code ensures legal compliance and the accurate calculation of landed costs, minimizing the risk of fines or holds during customs clearance.