HS Codes & HTS Codes Explained: Classification Guide
Master the harmonized system code classification to ensure proper customs clearance and accurate duty calculations.
HS Codes & HTS Codes Explained: Classification Guide
Correct HS/HTS codes are essential for international shipping. Wrong codes lead to delays, fines, and incorrect duties.
What Are HS Codes?
Harmonized System (HS) codes are standardized numerical codes that classify products for international trade.
- Created by: World Customs Organization (WCO)
- Used by: 200+ countries
- Purpose: Universal product classification
- Format: 6+ digits
HS vs HTS: What's the Difference?
| Code Type | Digits | Used Where |
|---|---|---|
| HS Code | 6 digits | International standard |
| HTS Code | 10 digits | US imports only |
| Schedule B | 10 digits | US exports only |
Example Breakdown
Cotton t-shirt: 6109.10.0012
6109.10.0012
│ │ │ │
│ │ │ └── US-specific (HTS)
│ │ └───── Subheading (cotton)
│ └──────── Heading (t-shirts)
└────────── Chapter (knitted apparel)
HS Code Structure
The 6-Digit International Standard
| Position | Level | Example |
|---|---|---|
| 1-2 | Chapter | 61 - Knitted apparel |
| 3-4 | Heading | 6109 - T-shirts |
| 5-6 | Subheading | 6109.10 - Cotton |
Common Chapters
| Chapter | Description |
|---|---|
| 61-62 | Apparel |
| 64 | Footwear |
| 71 | Jewelry |
| 84-85 | Electronics, machinery |
| 94 | Furniture |
| 95 | Toys |
Finding the Right Code
Method 1: Official Databases
- US: USITC HTS Search
- EU: TARIC database
- UK: UK Trade Tariff
Method 2: Ruling Requests
For complex products:
Method 3: atoship HS Code Lookup
- Search by product description
- AI-powered code suggestions
- Duty rate estimates included
Classification Tips
Start Broad, Get Specific
Common Classification Mistakes
| Mistake | Example | Consequence |
|---|---|---|
| Too generic | Using 6203 for all pants | May miss lower duty |
| Wrong material | Cotton coded as synthetic | Wrong duty rate |
| Wrong use | Gym shoes as casual | Potential fine |
| Outdated code | Code was updated | Rejection |
Duty Implications
How Codes Affect Duties
Same product, different codes, different duties:
| Product | HS Code | US Duty |
|---|---|---|
| Leather shoe | 6403.51 | 8.5% |
| Textile shoe | 6404.11 | 20% |
| Rubber boot | 6401.10 | 25% |
Trade Agreement Benefits
Proper codes enable preferential rates:
- USMCA: US-Mexico-Canada
- CAFTA-DR: Central America
- GSP: Developing countries
Product-Specific Examples
Electronics
| Product | HS Code | Notes |
|---|---|---|
| Smartphone | 8517.12 | 0% duty in most countries |
| Laptop | 8471.30 | 0% duty |
| Headphones | 8518.30 | Varies 0-8% |
| Smart watch | 8517.62 | 0% duty |
Apparel
| Product | HS Code | Notes |
|---|---|---|
| Cotton t-shirt | 6109.10 | 16-17% many countries |
| Polyester jacket | 6201.93 | Material determines code |
| Wool sweater | 6110.11 | Higher duties |
| Denim jeans | 6203.42 | Cotton specified |
Cosmetics
| Product | HS Code | Notes |
|---|---|---|
| Lipstick | 3304.10 | Often 0% |
| Perfume | 3303.00 | May have restrictions |
| Shampoo | 3305.10 | Usually low duty |
| Skincare | 3304.99 | Varies by ingredient |
Compliance Requirements
Documentation Needs
Record Keeping
Maintain for 5+ years:
- Classification decisions
- Supporting documentation
- Ruling letters
- Transaction records
When Codes Change
Annual Updates
HS codes update:
- Every 5 years (major revision)
- Annually (minor updates)
- Check before shipping
Correlation Tables
Use official tables to:
- Map old codes to new codes
- Verify current validity
- Update product databases
atoship HS Code Tools
Get codes right with atoship:
Conclusion
Correct HS code classification ensures smooth customs clearance, accurate duty payments, and access to trade agreement benefits. Use atoship's classification tools to find the right codes and calculate accurate landed costs for international shipments.
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