HTS Compliance

What Exactly Is The HTS Classification Number?

The HTS is a 10-digit code used by U.S. Customs to determine tariffs on commodities coming into the U.S. There are over 17,000 possible HTS classifications, so it can get confusing to find the right classification code for your specific goods and products. The U.S. government has a searchable HTS tool that you can use to find the HTS code that applies to your needs.

Even with the HTS search tool, you may be confused about what code applies to the commodities that you are importing. It’s important to find the right HTS code because it provides different information to agencies. An HTS code:

  • Determines the duty rate applied to imported commodities.
  • Helps U.S. Customs streamline the process to examine, document, and request information about a shipment.
  • Identifies specific regulations and other rules applied to imported goods and products.
  • Determines if goods and products are subject to duty exemption under specific trade agreements.
  • Allows U.S. agencies to collect import and export statistics.
  • Determines if different trade laws apply to imported products.

It’s important to pay special attention to HTS codes because tariffs vary greatly between different codes of imported products. Customs spends a lot of time and resources to audit documents and data from importers once their products have been cleared for entry to the U.S.

This process is where common mistakes with HTS classification are found, and you could receive a bill months after your product is sold if you do not classify commodities properly.

Work With A Trade Consultant Today!

Customs looks to you and your business leaders to exercise due diligence with all of your import transactions. There are a number of variables that you have to consider when you import any product into the U.S., and due to these complexities, it is vital to be proactive when reviewing your import transactions and HTS classifications.

Feel free to talk with our team today to learn how we can help you today!