Harmonized Tariff Schedule Code (HTS Code)
A numeric code used by the US to classify imported goods for customs duties and tariffs.
Definition
HTS codes are based on the HS system and provide detailed classification for duty determination and regulatory compliance in the US.
Overview of Harmonized Tariff Schedule Code (HTS Code)
The Harmonized Tariff Schedule (HTS) Code is the United States' national tariff classification system, administered by the US International Trade Commission (USITC) and enforced by US Customs and Border Protection (CBP). It extends the internationally standardized 6-digit Harmonized System (HS) code to a 10-digit structure by adding four additional digits that provide more granular US-specific classification for duty rate determination, trade statistics, and regulatory compliance. The first six digits align with the international HS standard; digits 7-8 further subdivide categories for US duty purposes; and digits 9-10 are statistical suffixes used for trade data collection with no direct duty impact. HTS codes determine the applicable Most Favored Nation (MFN) duty rate for every imported product entering the United States. They also govern eligibility for preferential duty treatment under Free Trade Agreements (NAFTA/USMCA, CAFTA-DR, US-Korea FTA, and others), Generalized System of Preferences (GSP) programs, and special tariff provisions. In addition to standard duties, HTS codes determine applicability of Section 301 tariffs (on Chinese-origin goods), Section 232 tariffs (steel and aluminum), antidumping and countervailing duty orders, and import quotas. The duty rates for any HTS code are published in the USITC's online HTS database, updated annually, and represent the most authoritative source for US duty information. HTS classification accuracy is a mission-critical compliance function for any business importing goods into the United States. CBP enforces an "informed compliance" standard—importers are expected to exercise reasonable care in classification, meaning ignorance of tariff rules is not an accepted defense. For WareMatch merchants importing inventory for warehouse storage and fulfillment, correct HTS classification affects not only duty cost but also lead time (incorrect classification can trigger examinations and delays), Section 301 tariff exposure on Chinese goods (codes with and without Section 301 tariffs can be adjacent in the schedule for similar products), and FTA duty savings that can eliminate duties entirely for goods sourced from FTA partner countries.
Role
A numeric code used by the US to classify imported goods for customs duties and tariffs.
Focus
The Harmonized Tariff Schedule (HTS) Code is the United States' national tariff classification system, administered by the US International Trade Commission (USITC) and enforced by US Customs and Border Protection (CBP). It extends the internationally standardized 6-digit Harmonized System (HS) code to a 10-digit structure by adding four additional digits that provide more granular US-specific classification for duty rate determination, trade statistics, and regulatory compliance. The first six digits align with the international HS standard; digits 7-8 further subdivide categories for US duty purposes; and digits 9-10 are statistical suffixes used for trade data collection with no direct duty impact. HTS codes determine the applicable Most Favored Nation (MFN) duty rate for every imported product entering the United States. They also govern eligibility for preferential duty treatment under Free Trade Agreements (NAFTA/USMCA, CAFTA-DR, US-Korea FTA, and others), Generalized System of Preferences (GSP) programs, and special tariff provisions. In addition to standard duties, HTS codes determine applicability of Section 301 tariffs (on Chinese-origin goods), Section 232 tariffs (steel and aluminum), antidumping and countervailing duty orders, and import quotas. The duty rates for any HTS code are published in the USITC's online HTS database, updated annually, and represent the most authoritative source for US duty information. HTS classification accuracy is a mission-critical compliance function for any business importing goods into the United States. CBP enforces an "informed compliance" standard—importers are expected to exercise reasonable care in classification, meaning ignorance of tariff rules is not an accepted defense. For WareMatch merchants importing inventory for warehouse storage and fulfillment, correct HTS classification affects not only duty cost but also lead time (incorrect classification can trigger examinations and delays), Section 301 tariff exposure on Chinese goods (codes with and without Section 301 tariffs can be adjacent in the schedule for similar products), and FTA duty savings that can eliminate duties entirely for goods sourced from FTA partner countries.
Example
See the definition above for context.
Benefits
- Correct HTS classification ensures the accurate duty rate is applied, preventing both overpayment and the costly penalties associated with underpayment
- HTS-based FTA origin analysis unlocks preferential duty rates (often 0%) for goods qualifying under USMCA, CAFTA, and other US trade agreements
- Section 301 tariff analysis by HTS code enables sourcing decisions that minimize duty exposure on China-origin goods
- Published HTS duty rates enable accurate landed cost modeling before purchase orders are placed, incorporating duty into total product cost
- Duty suspension and tariff classification rulings provide legal certainty for long-term import programs on complex products
- HTS code research is foundational to import quota compliance, which is enforced strictly at the HTS code level for quota-subject goods
FAQs
Q: Where can I look up the HTS duty rate for my product?
A: The definitive source is the USITC HTS database at hts.usitc.gov, updated annually. Enter your 10-digit HTS code to see the MFN (general) duty rate, any special program rates (FTAs, GSP), and applicable trade remedy rates (Section 301, 232, antidumping). For Section 301 China tariffs, which are subject to ongoing modification, also check the USTR's Section 301 List at ustr.gov. Commercial trade compliance platforms (Descartes, SAP GTS, Customs City) aggregate these sources with more user-friendly interfaces.
Q: How is an HTS code different from a Schedule B number?
A: The HTS code is used for imports, administered by CBP and USITC. The Schedule B number is used for US export reporting to the Census Bureau through the Automated Export System (AES). Both are 10-digit codes based on the same 6-digit HS foundation, but the additional 4 digits differ between the two systems. For most exporters, the first 6 digits of the Schedule B code match the first 6 digits of the equivalent HTS import code for the same product.
Q: What are Section 301 tariffs and how do HTS codes determine exposure?
A: Section 301 tariffs are additional duties imposed on goods of Chinese origin across multiple lists (List 1-4A), ranging from 7.5% to 25% ad valorem on top of standard MFN rates. Applicability is determined by HTS code—specific 8-digit or 10-digit HTS subheadings are listed in the USTR's Section 301 annexes. Adjacent HTS codes for similar products may have different Section 301 status, making precise classification critical. Exclusions from Section 301 tariffs were available for some products but have largely expired; consult the USTR's current exclusion list for any active exclusions applicable to your HTS codes.
Q: How does CBP audit HTS classification compliance?
A: CBP conducts focused assessment audits and CF-28 (Request for Information) and CF-29 (Notice of Action) processes on a risk-targeted basis. High-risk indicators include: large duty refund requests, high-value imports in complex product categories, prior penalties, significant Section 301 exposure, or importer involvement in known misclassification patterns. CBP's Regulatory Audit division conducts post-entry audits that can cover up to 4 prior years of entries. Maintaining classification workbooks (documenting the analysis behind each classification decision) is the primary evidence of reasonable care in an audit.