What Is an HTS Code? Definition

What is an HTS code? It is a 10-digit code belonging to the system of classification used in the US to categorize imported goods. Interestingly enough, the first 6 digits of HTS codes are actually the HS codes (international classification system accepted worldwide), and only the final 4 digits are unique to this system. Do you want to learn more? Then read on!

Key Points:

• HTS codes (Harmonized Tariff Schedule) are 10-digit numbers used strictly for classifying goods imported into the US.
• The first six digits match the international HS codes (used globally), while the last four are US-specific for detailed tariff calculation.
• While HTS codes are for US imports, Schedule B codes are 10-digit numbers used for classifying goods exported from the US.
• The overarching HS system is updated every 5 years, with the next major revision (HS 2027) coming into effect on January 1, 2027.
• Accurate 6-digit HS codes are now mandatory for goods entering the EU due to the strict ICS2 security protocol.
• Using correct codes prevents costly customs holds, incorrect tax applications, and severe supply chain delays.

What Is an HTS Code?

HTS or Harmonized Tariff Schedule is a set of tariff rates and categories regarding goods imported to the US. These codes are overlooked and administered by the US International Trade Commission (ITC).

What is an HTS code, then? It’s the specific, ten-digit-long number assigned to the product. The first six digits correspond to the Harmonized System (HS) codes, while the final 4 are US-specific and provide further information and categorization on the given goods.

Why are HTS codes important when sending your parcel from the UK to the US? They are used to navigate the legislative side of imports - and accurate classification is essential for smooth parcel shipping into the United States. For example, they enable precise recognition of which fees or restrictions apply to the given products. While the ITC governs them, it’s actually the customs that you should ask if you are in any doubt regarding the codes or your goods’ classification.

Managing HTS codes properly is important, since mistakes might slow down your shipments significantly. Thus, you need to pay attention to even the slightest details and work with the best experts to ensure that you use the correct codes every time.

HTS vs. HS Codes vs. Schedule B – What Are The Differences?

Knowing what an HTS code is, you should have no trouble differentiating it from other codes used in international trade to or from the US. Nevertheless, if you’re still unsure of the difference, here are the other, commonly mistaken codes compared.

HTS codes:
 

• HTS codes are used to classify only those products that are imported to the US. They are 10 digits long, with the first 6 digits being the HS code of the product. It is worth noting that the HTS system undergoes periodic reviews to adapt to new versions of the HS. The next major update will align with the HS 2027 edition, effective from January 1, 2027, in order to take into account new trends and technologies in international trade.

Schedule B Codes:

• Schedule B codes are used to classify only those products that are exported from the US. They are 10 digits long, and the first 6 digits correspond to the HS code of the product.

HS codes:

• HS codes are used by all member states of the World Customs Organisation (WCO). They are 6 digits long, with the first two digits indicating the chapter in the HS nomenclature, the next two digits indicating the heading in that document, and the last two digits indicating the subheading. However, it should be noted that from January 1, 2027, the new HS 2027 edition will come into force, introducing changes to product classifications to take account of new technologies and developments in the field of environmental protection. Additionally, accurate 6-digit HS codes are now a mandatory requirement for goods entering the European Union under the new Import Control System 2 (ICS2) security protocol.

As you can see, the customs clearance codes can get quite complicated – you’ll use different ones depending on the country and even the direction of the transaction. This means that you might need to operate on different codes depending on whether you’re just sending your products to the US or, for example, managing returns. At Landmark Global, we understand that this might be tricky; therefore, we offer you our expertise in customs clearance services through our Landmark Global Trade Services, allowing you to ensure a smooth customs clearance process.

What Do You Need to Know? Navigating the HTS Codes

As a seller, you are responsible for using proper HTS codes when importing your goods to the US. This means that you need to know how to overcome certain challenges and approach them in a way that won’t compromise your operations in the future. Here is some advice on how to do this.

Use the HTS Site to Find the Right Code

The Harmonized Tariff Schedule is a document that you can navigate through to find the codes for your goods. If you enter the site linked, you’ll see that the products are already categorized, so it’s easier to locate your goods on the list. However, you need to remember that it’s not always possible to find exact match HTS codes – this is why it’s highly beneficial to work with customs clearance experts, such as Landmark Global. We have extensive experience that we can use to classify your products, even in the most tricky cases.

Pick the Most Appropriate Code

In many situations, you might find several codes that could work for your product, but neither of them is an exact match. If this occurs, try to find the code that is the most accurate for your product – not the one that is the most beneficial for you.

Understand Trade Agreements

No matter whether you ship your goods from the UK or wish to do this from any other country, be sure to check international trade agreements. They often impact the tariffs, reducing the rates or eliminating them completely. You can find more detailed information in section XXII – Special Classification Provisions.

Remember that these might change with time, so stay up to date with this section. Or, rely on experts in navigating customs and HTS codes – we know when the changes occur and what their impact on trade is, so we will help you keep your customs clearance up to date.

Customs Clearance with Landmark Global

You know that we can help you with applying the proper HTS codes and streamline your operations, but that’s not all. Our customs clearance services can do much more than that. Why should you work with us?

• We will ensure that the correct data is provided and compliant with customs regulations. This means goods won’t be held up, and the risk of delay is reduced to a minimum. With us, you will deliver your products on time, every time.
• We will help you avoid shipment problems, costly duties, and taxes by taking advantage of the UK-EU trade agreement.
• You will stimulate customer satisfaction thanks to us calculating the final cost of transactions, inclusive of all duties, taxes, and shipping costs at checkout and all in the customers’ preferred currency.
• We will help you stay ahead of the curve by remaining compliant with the latest legislation in target markets.

The Takeaway

What is an HTS code? It’s a ten-digit number assigned to products imported to the US and used to define tariffs and understand the restrictions regarding particular products. It’s important to be aware of the different codes and navigate through these categorizations effectively, as mistakes might lead to long delays, hence hindering your business operations.

Worth remembering:

• HTS codes are 10-digit numbers used to classify imported goods to the US, with the first 6 digits matching international HS codes and the last 4 being US-specific. They help determine tariffs and restrictions.
• Proper use of HTS codes is crucial to avoid delays in customs clearance and potential shipment issues. Incorrect classification can lead to significant disruptions in business operations.
• Landmark Global offers expertise in managing HTS codes and customs clearance, ensuring compliance with regulations, reducing delays, and helping businesses navigate international trade agreements effectively.

Sources

• United States International Trade Commission. https://www.usitc.gov/featured_news/hts_updates_2026_hts_revision_13_rollout_new_hts 
• European Commission - Import Control System 2 (ICS2): https://taxation-customs.ec.europa.eu/customs-4/customs-security/import-control-system-2-ics2-0_en

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• ICS2 Release 3 on 3 June – Be Prepared
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• Form CN22 or CN23? Which One to Choose?
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