Harmonized Tariff Schedule
The Harmonized Tariff Schedule (HTS) is the US system of product classification codes, based on the international Harmonized System, that determines duty rates for imports.
Why it matters for ecommerce brands
The HTS code on each product decides its duty rate, and with added tariffs it can swing landed cost more than freight does. Codes are set by material, function, and use, and the rate you pay also depends on country of origin. Misclassification can lead to underpaid duties and penalties, or to overpaying for years. For example, two similar bags made of different materials can fall under codes with different duty rates. Classify every SKU before placing the first purchase order, and keep the reasoning on file.
Origin
The Harmonized Tariff Schedule of the United States took effect on January 1, 1989, replacing the old Tariff Schedules with codes built on the international Harmonized System.
Common questions
- How do I find the correct HTS code for my product?
- Search the HTS on the US International Trade Commission website using the product's material, function, and use, then apply the General Rules of Interpretation. For uncertain items, ask your customs broker or request a binding ruling from CBP.
- What is the difference between an HS code and an HTS code?
- The HS code is the 6-digit international base that most countries share. The US HTS adds digits to make a 10-digit code, and its first 8 digits set the US duty rate.
- Who is responsible for the HTS code on an import?
- The importer of record is legally responsible for using reasonable care in classification, even when a broker files the entry. Brokers and suppliers can advise, but the liability stays with the importer.
Laws and regulations
- Smoot-Hawley Tariff Act (Tariff Act of 1930)1930 · 1930 tariff law still at the core of US customs law
- Generalized System of Preferences (GSP)1976, lapsed 2020 · US duty-free program for poorer nations, lapsed 2020
- Harmonized System Convention1983, in force 1988 · Treaty behind the six-digit HS product codes