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Flexport’s import and export data is sourced from US Census statistical records. Figures represent imports to the United States from other countries and exports from the United States to other countries. Read more about HS Codes here.

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Importing goods into the United States, and subsequently working with US Customs, comes with extra process and paperwork. US Customs requires businesses to declare the items they’re importing into the country using an important identifier, known as an HTS code.

Understanding how to import your goods through customs, including the proper use of HTS codes, will help you avoid headaches at the border and ensure there are no hold ups or delays when it comes to shipments and eventually getting products into the hands of your customers. Here, we’ll outline how HTS codes work, how to determine the HTS codes for your goods, and the ramifications of improper usage—including fees, unexpected inspections, seizures, and penalties levied by US Customs.

An HTS code is a unique 10-digit number that determines the tariff tax or duty incurred on items imported into the United States from other countries. HTS codes are maintained by the United States International Trade Commission, but enforced by Customs and Border Protection (CBP) of the Department of Homeland Security.

The world of international ecommerce and imports can feel complicated, in no small part due to a slew of terms and acronyms that make understanding processes even harder. Before we dive into how HTS codes work, let’s define some of the governing bodies and terms you’ll encounter as you navigate the world of international imports:

Established in 1952 as the Customs Co-op Council, the World Customs Organization (WCO) is an independent intergovernmental body representing 183 customs administrators around the world, responsible for approximately 98% of international trade. They work to create uniformity, harmony, and efficiency in customs regulations across countries. The WCO established and maintains the Harmonized Commodity Description and Coding System, typically referred to as the Harmonized System or the HS.

Formally known as the Harmonized Commodity Description and Coding System, the HS is a universal language for identifying and coding goods being traded internationally. In other words, it’s a nomenclature for transportable goods. Almost all countries use this system for their customs tariffs and for trade statistics. The last version of the HS was put in place in 2017, while a new version will be introduced and take effect on January, 1, 2022.

A six-digit code that categorizes each imported good. The first two digits represent the chapter, the middle two digits represent the heading within the chapter, and last two digits represent the sub-heading within the heading.

Brought into effect in 1989, the HTS is a hierarchical numerical structure for describing goods for duty, quota, and statistical purposes in the United States. The system is based upon the HS. Be aware that the HTS is sometimes referred to as the Harmonized Tariff Schedule of the United States (HTSUS).

A 10-digit code that categorizes each imported good. The first six digits are an HS code. The subsequent two digits identify the US subheading of the HS code to determine the duty rate, while the final two digits are a statistical suffix.

Schedule B is the statistical classification for goods exported from the United States. It is maintained and published by the United States Census Bureau and is based on the HS.

While almost all countries use the HS to determine tariffs and classify imported goods, the United States uses the HTS. The HTS was enacted by Congress and brought into effect on January 1, 1989. The system is based on the HS, unlike the previous Tariff Schedules of the United States it replaced.

The HTS is divided into chapters, headings, and subheadings that determine the HTS code for each good. The HTS is composed of over 10,000 individual codes belonging to specific items.

For example, Section II, Chapter 9 classifies “Coffee, tea, maté and spices” and will be relevant if you’re importing cinnamon into the US. Within this chapter, you’ll find HTS codes, descriptions, and duty rates for goods like the aforementioned cinnamon, as well as green tea, saffron, and more.

All HTS codes are 10 digits long and broken down into five different sections. Additionally, as covered earlier, the first six digits are the HS number under the international HS.

HTS codes can be located in individual HTS PDFs of each chapter, downloadable on the HTS website, or they can be looked up in the HTS search database.

As you go further down, more specific classifications of cinnamon have different 10-digit HTS codes that combine the heading/subheading and stastifical suffix:

The HTS code of an item tells you the duty (or tariff) on an imported good in the Rates of Duty column, based on the quantity in the Unit of Quantity column. The rates of duty is divided into three different sub-columns:

As an entrepreneur, knowing the HTS code of a product doesn’t only provide a tax rate on importing it into the US, it also can provide insight on the best place to source your products in the most cost-effective manner to increase the upside of your business.

Schedule B is the statistical classification for goods exported from the United States. It is maintained and published by the United States Census Bureau and based on the HS. Schedule B codes are used by the US government to monitor US exports

While a good’s Schedule B code and HTS code can be the same, Schedule B and the HTS are different systems that serve different purposes. As a business owner, you should use HTS codes when importing and Schedule B codes with exporting.

Knowing how to read the HTS and understanding what each HTS code means will help you avoid issues that can arise with customs. Here are a few things to keep in mind as a business owner importing goods into the United States:

You are responsible for the proper HTS code. Along the export journey, you are likely to come in contact with a supplier and a freight forwarder. Both entities are required to declare the HTS codes of the items they are supplying and forwarding, respectively. However, as the “importer of record,” you are ultimately responsible for using the proper HTS code. Do your own research to verify any code you are provided in the HS to ensure it is correct.

Use the correct code, not the advantageous code. On the HTS, it’s not uncommon to have an item that could plausibly fit under several different codes. It’s important to choose the code that is most correct, rather than the code that has the lowest tariff rate. As a rule of thumb, use the code that describes your goods in its condition as imported, as a Customs agent would view it at the port of entry. Additionally, you can refer to the General Rules of Interpretations, six principles shared in the HTS, for more guidance on classifying goods. If you are unsure, reach out to the USITC directly for help.

Unfortunately, incorrect use of HS codes on your products can have consequences—such as delays, heightened inspections, fees, penalties, and seizures—that impact your business and prevent your goods from coming into the United States and getting to your customers.

As a merchant, you are considered the importer of record and are ultimately responsible for the proper classification of your goods. Getting HS codes right will prevent these consequences from being levied by US Customs.

While Shopify does not currently support adding HTS codes to products, the first six digits of an HTS code are the equivalent of an HS code, and can be inputted. Though HS codes are important as a merchant when importing goods, they’re also relevant for the goods you ship to international customers.

If you’re a merchant using Shopify to sell your goods online, the platform supports adding HS codes to the goods you plan to ship around the world, in order to show international customers an estimate of duties at checkout. Duties are calculated based on a few factors, including a product’s declared value and shipping costs, the product category as determined by the HS code, the country or region of origin, the destination country’s tariff rates, and applicable trade treaties.

Understanding the HS and knowing how to classify your goods with an HS code will help you avoid headaches when it comes to bringing your items across the border and let you seamlessly expand your store to multiple countries.

Aside from remaining compliant with regulations and avoiding penalties for non-compliance, understanding the HTS and HTS codes can also positively impact your business and drive decision making by informing where you import from and where you avoid.

By knowing how to navigate the system and building an awareness of some of the most common HS code mistakes, you’ll avoid international import errors and mishaps. Instead, you can focus on bringing your items into the United States, packaging and sending them off to customers, and building your business one shipment at a time.

You can find the HTS number for your good within a specific chapter of the current HTS online. You can also locate it using the official HTS search tool, though it’s important to read the disclaimer. If you’re struggling to find the right HTS code, try using Google. However, always ensure to cross-check with the official HTS, which should be considered the correct reference.

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When the soft keys are hidden it is not easy to advance to the next screen: First tap to make the buttons appear, then a quick swipe for the next screen before the buttons are hidden again.