HTS Code (Harmonized Tariff Schedule) (HTS)

Definition

The Harmonized Tariff Schedule of the United States is the classification system that assigns a numeric code to every imported product. The HTS code determines the duty rate and any applicable trade restrictions for the goods.

Why it matters

An incorrect HTS classification means an incorrect duty calculation. Classification often requires judgment, so it is a field that should be reviewed by a person against the source document, not assumed or rushed.

How the HTS code is structured

A U.S. HTS number is 10 digits. The first six digits follow the international Harmonized System (HS) used by most countries. Digits 7 and 8 are a U.S. statistical suffix that further refines the classification. Digits 9 and 10 are used for additional U.S. duty and trade program purposes. The first six digits are the basis for most duty rate calculations and for determining whether a product is subject to Section 301 China tariffs, antidumping duties, or countervailing duties.

The classification process and where it goes wrong

The correct HTS code for a product depends on its material composition, function, end use, and sometimes the country of origin. A commercial invoice description like "industrial parts" or "clothing accessories" does not determine the code. The customs broker must read the invoice, the packing list, and sometimes the product specification to classify correctly. The most common errors are: using a prior shipment's code without checking whether the product changed, accepting the shipper's declared code without verification, and choosing a broad heading when a narrower heading carries a lower duty rate. Any of these can lead to a CBP liquidation with additional duties owed, plus interest.

Section 301 and HTS classification risk

Since 2018, the HTS code on a China-origin shipment determines whether Section 301 tariffs apply and at what rate. As of 2026, rates on affected categories range from 7.5% to 145% on top of the standard duty rate. A misclassification that places goods in the wrong HTS heading can result in underpayment of Section 301 duties, which CBP can assess on the original entry through the liquidation process. For high-volume importers, ensuring the HTS code is correct on every entry is a direct cost-control function, not just a compliance exercise.