HTS codes

What are HTS codes?

The Harmonized Tariff Schedule (HTS) is an extension of the international Harmonized System (HS) of tariff nomenclature, specifically used by the United States. The HTS classifies a wide range of traded goods based on their name, use, and/or the material used in their construction, and assigns a unique ten-digit code to each type of product.

Like the HS system, the HTS starts with the six-digit HS code:

1. The first two digits represent the HS Chapter, identifying the broad category of goods.
2. The next two digits indicate the HS Heading, which specifies a sub-category within the general category.
3. The following two digits denote the HS Subheading, which provides a detailed description of the product.

The HTS then extends this system with additional digits:

4. The seventh and eighth digits of the HTS code correspond to an item’s classification within its subheading, often providing further details about the material or use of the product.
5. The final ninth and tenth digits identify the specific product and are unique to the U.S.

Thus, the HTS provides more granular detail than the HS code alone. It is used by U.S. Customs and Border Protection (CBP) to determine tariff rates for imports, monitor controlled goods, and compile trade statistics. Importers and exporters must know the correct HTS code for their goods in order to complete customs documentation accurately.