The classification and tariff declaration of goods is fundamental in international trade. The Harmonised Tariff Schedule (HTS) code plays a pivotal role in standardizing the classification of goods. In this article, we will comprehensively analyze the definition of the HTS code, its operational mechanisms, the query method, the structure, and the distinction between the HTS and HS codes. This analysis aims to enhance your comprehension and utilization of the HTS code.
What are HTS Codes
The Harmonised Tariff Schedule (HTS) code is the standard way of classifying and collecting duties on imported goods in the United States. It covers almost all types of goods that can be imported, from raw materials to manufactured goods and from general merchandise to high-technology products. Each of these goods has its own specific HTS code. These codes are based on the internationally recognized Harmonised Commodity Description and Coding System (HS). Still, they are also adapted to meet the needs of US Customs in managing imported goods according to US trade policies and tariff structures.
How HTS works
Commodity Classification: The goods are put into the right HTS code group based on what they are made of, how they are used, and other things.
Tariff Rate Determination: The code determines the tariff rate and related policies that apply to the goods.
Customs Clearance Process: Companies must provide the proper HTS codes when making customs declarations to ensure that customs can quickly clear goods.
Statistics: Help the government and companies understand trade data, the basis for policy-making and market analysis.
How do you search for HTS codes?
Online databases: Search through each country’s customs website or relevant online tools (e.g., the U.S. International Trade Commission website).
Professional services: Hire a customs broker or freight forwarder for accurate HTS classification.
Structure of the HTS code
It consists of ten digits:
The first six digits are the same as the HS code, representing the international classification of goods.
Seventh to tenth digits: added by each country according to its needs, used to refine the classification and exceptional management.
Hierarchical classification: from broad commodity categories to specific commodities.
Example:
The HTS code for imported fruits is 0805100020. The first six digits of 080510 represent citrus fruits, and the last four digits are further subdivided into specific varieties and states.
What is the difference between HTS codes and HS codes?
Definition and scope of use:
HS Code : A six-digit code developed by the World Customs Organization (WCO) for international harmonization.
HTS Code: A 10-digit code based on the expansion of the HS Code, applicable to specific countries or regions.
Level of detail:
HTS codes are more detailed than HS codes and reflect the country’s or region’s specific needs for the commodity.
Areas of application:
HS codes are used for global trade statistics.
HTS codes are used for tariff collection and customs administration.
summary
HTS codes represent an indispensable instrument within international trade, providing critical support for classifying commodities, determining tariffs, and supervising trade. A comprehensive understanding of the definition, operational mechanism, and query method of HTS codes can assist enterprises in enhancing the efficiency of customs clearance and effectively mitigating the risks posed by misclassification. By thoroughly grasping the distinction between the HTS and the HS codes, enterprises can optimize the import and export process, reduce trade costs, and enhance market competitiveness.