For e-commerce sellers who import products, the Harmonized Tariff Schedule (HTS) code is one of the most important yet often misunderstood pieces of information. This code is the key to determining the tariff rate for your products, and getting it wrong can lead to costly delays, fines, and inaccurate cost calculations. This guide will demystify HTS codes and show you how they affect your tariff rates.
What is an HTS Code?
The Harmonized Tariff Schedule (HTS) code is a 10-digit classification system used by the United States to categorize imported goods. The first six digits are part of the internationally standardized Harmonized System (HS), while the last four digits are specific to the US. Every product that is imported into the US must be assigned an HTS code.
Think of it as a universal language for customs authorities. It tells them exactly what your product is, which allows them to apply the correct tariff rate and ensure that your goods are compliant with all regulations.
How HTS Codes Affect Your Tariff Rate
The HTS code is the single most important factor in determining the tariff rate for your product. Each HTS code is associated with a specific duty rate, which can vary based on the country of origin. An incorrect HTS code can lead to either overpaying or underpaying your duties. While overpaying hurts your bottom line, underpaying can lead to penalties and legal issues.
💡 Even a small difference in HTS codes can result in a significant difference in the tariff rate. For example, different types of leather shoes have different HTS codes and, therefore, different duty rates.
How to Find the HTS Code for Your Products
Finding the correct HTS code can be challenging, but there are several resources available:
- US International Trade Commission (USITC) HTS Search Tool: The official HTS search tool is the most authoritative source for finding HTS codes. You can search by keyword to find the appropriate code for your product.
- Your Supplier: Your supplier may already know the correct HTS code for your products, especially if they have experience exporting to the US.
- Customs Broker: A licensed customs broker can help you classify your products correctly and ensure you are using the right HTS code.
The Easy Way to Deal with HTS Codes and Tariffs
While understanding HTS codes is important, you don't have to be an expert to calculate your tariffs. For most e-commerce products, a general product category is enough to get an accurate estimate of your tariff costs. This is where TariffSnap comes in.
TariffSnap simplifies the process by allowing you to use general product categories (e.g., "electronics," "textiles") to get an instant tariff audit. This saves you the time and hassle of looking up HTS codes for every product, while still providing you with the accurate landed cost information you need to make smart business decisions.
Don't Get Bogged Down in HTS Codes
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Get Your Tariff Audit →Frequently Asked Questions (FAQ)
What happens if I use the wrong HTS code?
Using the wrong HTS code can lead to your shipment being delayed or held by customs, as well as potential fines and penalties. It can also result in you paying the wrong amount of duty.
Do I need an HTS code for every product I import?
Yes, every product that is imported into the US must be classified with an HTS code.
Can the HTS code change for my product?
Yes, the HTS is updated periodically to reflect changes in technology and trade patterns. It's a good practice to review your HTS codes regularly to ensure they are still accurate.
Conclusion: Clarity in a Complex System
HTS codes are a fundamental part of the import process, but they don't have to be a barrier to your e-commerce success. By understanding what they are, how they work, and how to find them, you can ensure that you are paying the correct amount of duty and accurately calculating your landed costs. And with tools like TariffSnap, you can simplify the process even further, allowing you to focus on what you do best: growing your business.