All items being imported or exported have a specific code to define exactly what they are. These codes help customs authorities identify what’s coming in – and determine what taxes or tariffs need to be paid.
If you’re new to importing, all this customs terminology can feel overwhelming. What are all these codes? Why are there so many different ones?
This post will clear things up. You’ll learn the difference between HS and HTS codes, when each is used, and what they mean for your shipments. We’ll also go over common mistakes and how to avoid them, so you can import with confidence.
Let’s Define – HS code and HTS code
HS Code – A code for worldwide use
- An International Harmonized Schedule (HS) code
- A 6 digit number
- Used worldwide to classify goods for international trade
- Describes what category the item is
- Indicates to the country of import what taxes, duties and tariffs apply – which differs by country
HTS Code – A code for use in the USA
- A Harmonized Tariff Schedule (HTS) code
- A 10 digit code, of which the first 6 digits are the HS Code
- The last 4 digits denote further US based tariff classification
- Used in one country only. HTSUS codes are used in the US.
- Describes what the item is in exact detail
- Indicates the exact tax, duty and tariff rate meant to be collected in the US
Here’s a table where you can see both the global HS code and the USA-specific HTS code for a vacuum flask. Canada’s HTSCA code is also included here, so you can see how that differs too.
| Country | Code | Description |
|---|---|---|
| Global (HS) | 9617.00 | Vacuum flasks and other vacuum vessels |
| USA (HTSUS) | 9617.00.2000 | Vacuum flasks, stainless steel, not over 1 liter |
| Canada (HS/HTSCA) | 9617.00.90.00 | Other vacuum flasks |
When do I need both HS and HTS codes?
When you import something into another country, you need both the internationally recognised HS code and the HTS code specific to that country.
If you want to import something from China into the US, for example, you would need to use the US specific HTS code (the HTSUS code) on the customs documentation. Although your goods are manufactured in China, a Chinese code will not be recognised or accepted at the US border, and a 6-digit HS code will not be enough.
So what you really need when importing is the 10-digit HTS code of the country you are importing to – and within that, the first 6 digits are the worldwide-used HS code.
Why The Codes Matter – Beyond Taxes
It’s so important to use the accurate HS and HTS code for your product. It will affect your import in many ways – it’s more than just a code saying how much tax you will be charged. Here’s what else can happen:
Delays at customs – as your shipment undergoes assessment
Incorrect duties (overpaying or underpaying) – you may end up paying more as they assign you an expensive category when a cheaper one would have been accurate too, or if you underpaid you will be charged the difference.
Fines or audits – Customs Exam fees will be charged if you get stopped at customs; fines will be charged if you are found guilty of customs fraud. (Imprisonment can also be a consequence of customs fraud.)
Reclassification by customs, which can cause issues with compliance history
Common HS and HTS Code Mistakes – And How To Avoid Them
Guessing the code based on product description – To find the correct code, you need to know exactly what material(s) the product is made from and it’s purpose for use. The manufacturer can provide details on the materials.
Using a code from the exporting country instead of the importing country – Make sure you understand exactly which is your HS code and which is your HTS code so they do not become mixed up in your shipping and customs paperwork.
Not updating codes after WCO changes – Codes and sections undergo edits and changes periodically. A good customs broker will keep you updated on this.
Copying competitor listings without verifying the code – Without a very strong understanding of HS and HTS codes, simply looking at competitors’ information or even searching on Google may not be enough. Even if you do identify an accurate code, an expert may know of another category also correct for your item that has less tax to pay on it.
Staying On Top Of Code Changes
HS codes are made by the World Customs Organization, and they do an overhaul of their codes every 5 years. In that process, some categories get removed or added, and some codes are changed. The last change was in 2022.
How to Look Up the Right Code
The best way to find the correct HTS code for your product is to use the official HTS Search Tool. It’s the most up-to-date and reliable resource, with access to the full U.S. Harmonized Tariff Schedule database.
A quick word of caution:
Small differences in how a product is made can result in a completely different classification – and a very different tariff rate. For example, a cotton shirt and a synthetic one might fall under separate categories with very different import duties.
That’s why we always recommend speaking to a licensed customs broker. The right broker won’t just find an accurate code – they’ll also help ensure it’s the most cost-effective one legally available.
At Simple Forwarding, our customs brokerage team can help you classify your goods correctly and make sure you’re not overpaying in duties.
Contact us today for expert help.
