HTS Codes & HS Codes - Definition and Lookup Tool in 2023
Selling internationally can't do without dealing with customs. If you are selling cross-border, you need to show full compliance with customs regulations, including providing a valid HS code or HTS code for your product.
There remains the necessity to get the correct item classification because any error during customs can lead to huge losses. This is where HS/HTS codes come into play. With HS/HTS codes, pinpointing the material, the function, and the product specification is made possible. Read on, and learn more about the HTS code and the HS code.
- 1. What is an HTS Code?
- 2. What is the Harmonized Tariff Schedule (HTS)？
- 3. Why do You Need an HTS Code?
- 4. What is an HS Code?
- 5. What is the Harmonized System (HS)?
- 6. Why Do You Need an HS Code?
- 7. What is a Schedule B Number?
- 8. How to Find the Correct HS Code or HTS Code? (Easy-to-use Lookup Tool)
1. What is an HTS Code?
HTS codes refer to Harmonized Tariff Schedule codes, usually with a length of 10 digits. Typically, the first six digits of HTS codes are the same as the HS code for that particular product catalog. The rest reveals more product details. It is also worth noting that HTS codes are country specific. Imports shipping into the United States are required to get the matched HTS code.
HTS codes are designated to identify importing product categories, calculate correct customs duty rates, measure import quotas, and standardize the trading data collection. When shipping products into the United States, HTS codes are mandatory as a significant part of going through customs procedures.
2. What is the Harmonized Tariff Schedule (HTS)?
HTS represents Harmonized Tariff Schedule, a system applied in the United States for imported item identification and customs product classification.
HTS codes are governed, published, and maintained by the United States International Trade Commission (ITC). But it is enforced by the Bureau of Customs and Border Protection in the United States.
3. Why do You Need an HTS Code?
If you intend to import into the US, an accurate HTS code will be required by the CBP (Customs and Border Protection) to determine whether your product shows full compliance. Based on the correct HTS code you find, you can also assess the estimated import duties you are about to pay before importing to the US. Learning about the accurate customs tariff classification of imports remains crucial because you can find out whether your product can qualify for a preferential tariff.
4. What is an HS Code?
HS codes stand for Harmonized System codes, a kind of globally recognized codes used by customs authorities worldwide to identify internationally-traded products in the exporting process. With HS codes, up to 5000+ product categories are easy to distinguish.
Basically, HS codes come with 6 digits. However, the length of it can vary from 6 to 12 digits depending on which country you are going to ship to. In most cases, the first 4 digits of the HS codes refer to the general product catalog, and the additional digits will offer other product details, for example, the material and the function of it.
5. What is the Harmonized System (HS)?
HS means the Harmonized System, also formally known as Harmonized Commodity Description and Coding System. As a classification system, Harmonized System is used in almost all countries around the globe, carrying the function of classifying globally-traded products. It is developed and maintained by the World Customs Organization (WCO), and will be updated every five years so new item catalogs can be assigned a unique HS code. Harmonized System will assign HS codes for different item categories as a method to simplify international transactions. It worked. Now all participating countries of WCO have established systems to identify exporting products with HS codes.
6. Why Do You Need an HS Code?
Every item in your package needs a valid HS code; if not, you may wind up receiving wrong customs charges. Or even worse, customs holds or even rejected shipments may happen. Preparing shipping documentation, like commercial invoices and certificates of origin, cannot do without HS codes, either.
Customs authorities around the world will request the exporter to declare items in a correct and accurate way. HS codes, as the identifier, play a fundamental role. The customs authority in the receiving country also takes HS codes as a method to calculate and assess customs duties and taxes. When there is a preferential tariff rate for a specific product type, the customs authority will need an HS code to determine whether your product can be qualified. To ensure your tax compliance solution is going smooth, you need to get the right HS code in advance. What's more, with HS codes, the efficiency of gathering and analyzing trade statistics can be improved hugely.
7. What is a Schedule B Number?
Schedule B numbers, administered and maintained by the Census Bureau's Foreign Trade Division in the United States, are specifically designated to classify the product exported from the US.
Schedule B number is utilized exclusively in the United States to identify item classification for export. And Schedule B numbers always carry a length of 10 digits. Just like HTS codes, the first 6 digits of the Schedule B number are the HS code for the same product category; however, the last four differ from HTS codes. In addition to recognizing exporting products, the Schedule B numbers are also used to strengthen the US export compliance. Simply put, Schedule B numbers are utilized for statistical purposes. The exporting data collecting and reporting process is finally standardized and streamlined.
Is there any difference between Schedule B numbers and HTS codes? Yes. The US HTS codes are the numbers responsible for identifying goods imported into the United States. While the Schedule B numbers are specific to US exports.
8. How to Find the Correct HS Code or HTS Code? (Easy-to-use Lookup Tool)
You will need to search for the HS code or HTS code in various scenarios: completing the documentation required by the local customs authority, checking the most recent customs duty rates, and more. Explore our HS/HTS code lookup tool to get it done easily and quickly. Just put a product description or a product name into the search bar, and then click the search button. If you feel at a loss to describe your item, you can input a keyword relating to it, and you will get a more accurate description from the search results showed up.
