Harmonized Tariff Schedule (HTS) Codes: 2025 Guide

In 2024, Ford received a $365 million bill from the US government for misclassifying its Transit Connect vans under the wrong Harmonized Tariff Schedule (HTS) code. The company allegedly was calling cargo vans “passenger vehicles” to dodge higher import duties. 

Problems with HTS codes don’t just affect major companies, though. 

Bogg, the viral beach tote brand, ran into trouble over something as small as a keychain. A zinc alloy ring was accidentally classified as stainless steel, bumping up duty rates by 30%.

Whether you’re importing minivans or monogrammed keychains, mislabeling a product—even by accident—can trigger delays, penalties, and duties.

We’ll break down what HTS codes are, how to get them right, and what tools you can use to avoid expensive paperwork. 

What is an HTS code?

HTS stands for Harmonized Tariff Schedule, the system customs uses to decide how much duty you owe on an imported product. Every product gets a unique 10-digit code that determines how much duty you’ll pay at the border. 

The first six digits come from the international Harmonized System (used in more than 200 countries), and the last four are US-specific. Together, they spell out what your item is—down to the material, purpose, and even shape.

The US International Trade Commission (USITC) maintains the HTS and updates it to stay aligned with global standards. But it’s US Customs and Border Protection (CBP) that enforces it: reviewing your paperwork, flagging errors, and deciding whether your shipment clears or sits.

HTS codes: A glossary

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. Here are some of the governing bodies and terms you’ll encounter as you navigate the world of international imports.

World Customs Organization (WCO)

The World Customs Organization is an independent intergovernmental body representing 186 customs administrators around the world, responsible for approximately 98% of international trade.

It established, and now maintains, the Harmonized Commodity Description and Coding System, typically referred to as the Harmonized System or the HS.

Harmonized System (HS)

The Harmonized System (HS), formally known as the Harmonized Commodity Description and Coding System, 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 classification system for their customs tariffs and for trade statistics. 

HS code

An HS code is 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.

Though HS codes are important to a merchant when importing goods, they’re also relevant for the goods you ship to international customers. 

Harmonized Tariff Schedule (HTS)

The HTS is a hierarchical numbering system used to classify every product imported into the US—it’s how customs decides what duty rate applies, whether quotas kick in, and how trade stats get recorded.

It’s based on the international Harmonized System (HS), but tailored to US imports. You might see it called HTSUS (Harmonized Tariff Schedule of the United States).

HTS code

HTS numbers are 10-digit codes that categorize 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.

United States International Trade Commission (USITC)

Established in 1916, the United States International Trade Commission is in charge of trade-related mandates. It maintains the Harmonized Tariff Schedule (HTS).

Customs and Border Protection of the Department of Homeland Security (CBP)

US Customs and Border Protection is charged with maintaining the integrity of the country’s borders and ports of entry. It enforces the HTS.

Statistical Classification of Domestic and Foreign Commodities Exported from the United States (Schedule B)

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.

HTS vs. Schedule B codes

Unlike HTS codes, Schedule B codes are 10-digit international codes that explain the statistical classification for goods exported from the United States. Schedule B is maintained and published by the United States Census Bureau and based on the HS.

To summarize the differences between HTS and Schedule B:

• HTS codes are used for international imports; Schedule B codes are used for exports. 
• HTS codes are governed by the USITC and enforced by US Customs; Schedule B codes are governed by the United States Census Bureau.

A brief history of HTS codes

The Harmonized Tariff Schedule (HTS) was officially rolled out in the US on January 1, 1989, replacing the older Tariff Schedules of the United States.

This shift aligned US trade classification with the international Harmonized System (HS), maintained by the World Customs Organization (WCO). 

The HTS added four US-specific digits to the global six-digit HS framework, allowing for more precise classification and enforcement.

Today:

• The USITC maintains and updates the HTS annually
• US Customs and Border Protection (CBP) enforces it at the border
• Penalties for incorrect classification fall under the Tariff Act of 1930

Structure of HTS codes

All HTS codes are 10 digits long and broken down into five different sections. The first six digits are the HS number under the international HS.

Here’s the breakdown of an HTS code:

• Chapter: These first two digits identify the chapter in the HTS. The numbers are consistent internationally. 
• Heading: These next two digits identify the heading within that chapter in the HTS. The numbers are consistent internationally. 
• Subheading: These following two digits identify the subheading within that chapter. The numbers are consistent internationally. 
• Subheading (tariff rate lines): These two digits establish duty rates. The numbers are specific to the United States.
• Statistical suffix: These last two digits are statistical suffixes that collect trade data. The numbers are specific to the United States.

Take a look at this example and see how you would classify the HTS of “certified organic green tea (flavored).”

Here’s how the full 10-digit code narrows from “tea” all the way down to “certified organic”:

How HTS chapters work

The HTS is used to classify imported goods based on a range of characteristics, like composition, product name, and function. There are more than 19,000 detailed codes, each one narrowing in on a specific category of goods. Codes are divided into chapters, headings, and subheadings that determine the HTS code for each good.

The most up-to-date version of the HTS can be found on the USITC government website, including General Notes, General Rules of Interpretation (GRIs), General Statistical Notes, and more guidelines with additional descriptions and clarifications. You should refer to these texts whenever classifying goods and understanding tariff rates. 

To see how it works in real life, let’s look at cinnamon.

Cinnamon falls under Chapter 9, which covers “Coffee, tea, maté and spices.” The full HTS code for cinnamon-tree flowers, neither crushed nor ground, is 0906.11.00.00—and as of the latest HTS release, that item carries no import duty under the general rate.

Other forms of cinnamon—like crushed or ground—fall under different subheadings, with their own duty rates.

Each HTS chapter is given a two-digit number. In the case of Chapter 9 for cinnamon imports, all goods start with the same two digits (e.g., 09). 

How HTS codes and tariffs work

Within each chapter are four-digit headings, listed in the Heading/Subheading column. In the example of “Cinnamon and cinnamon-tree flowers,” the appropriate heading is 0906. Further descriptions appear in the Article Description column. 

As you go further down, you’ll see that the specific import classification of cinnamon has different 10-digit HTS codes that combine the heading/subheading and statistical suffix:

• Cinnamon-tree flower, neither crushed nor ground, has an HTS code of 0906.11.00.00
• Cinnamon (other) has an HTS code of 0906.19.00.00
• Cinnamon (crushed or ground) has an HTS code of 0906.20.00.00.

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:

1. Column 1 (General): The rate of duty applied to imports from countries with which the United States maintains “normal trade relations.”
2. Column 1 (Special): The rate of duty applied to special tariff treatment programs such as free trade agreements or the generalized system of preferences.
3. Column 2: The rate of duty applied to imports from countries the United States does not maintain normal trade relations with, namely Cuba and North Korea.

There are three types of duty rates you will see in the HTS:

• Ad valorem: A percentage applied to the good’s customs value (e.g., 2.5%)
• Specific: A price per quantity of the good (e.g., 5¢ per kilogram)
• Compound: An ad valorem and a specific price per quantity of the good (e.g., 2.5% + 5¢ per kilogram)

Now, back to the cinnamon example. Here’s what can be determined from the HTS number (0906.20.00.00) of crushed or ground cinnamon:

• Importing this type of good from most countries is free and does not have a duty tax attached. 
• If you hover over the attached note, you’re referred to 9903.88.15 in Chapter 99 on Temporary Legislation in the HTS. When you navigate to this section, you will find the following stated: “For the purposes of heading 9903.88.15, products of China, as provided for in this note, shall be subject to an additional 7.5% ad valorem rate of duty.”
• Based on Column 2, the specific rate of duty applied to this item from Cuba and North Korea is 11¢ per kilogram.

As an entrepreneur, knowing the HTS code of a product not only tells you the import tax rate, but also provides insight on the most cost-effective sourcing options to grow your business.

HTS code mistakes and penalties

Incorrect use of HTS codes can stop your shipment at the border, rack up extra duties, or even trigger HTS code penalties. As the importer of record, you’re ultimately responsible for assigning the right code. 

Common classification errors

Here are a few common mistakes merchants make:

• Picking the cheaper code instead of the accurate one: Always use the code that best describes the product in its condition as imported—not the one with the lowest tariff rate.
• Misclassifying by material or function: For example, labeling a zinc key ring as stainless steel (like Bogg accidentally did) or listing cargo vans as passenger vehicles (in the case of Ford).
• Copy-pasting codes without due diligence: Relying on old invoices or third-party templates instead of verifying in the current HTS can cause costly delays or penalties.

Trade agreements and programs

The US has multiple trade agreements and preferential programs that can reduce or even eliminate tariffs. These benefits aren’t automatic; you need to apply the correct HTS code and meet the program’s conditions.

• Check the General Notes section of the HTS for eligibility.
• Common examples include United States-Mexico-Canada Agreement (USMCA, formerly NAFTA), Dominican Republic-Central America Free Trade Agreement (CAFTA-DR), and programs for developing countries like the Generalized System of Preferences (GSP).

If you don’t assign the right code, you can miss out on these benefits, and also overpay on duties.

Civil and criminal HTS code penalties

According to US Customs and Border Protection (CBP), the “failure to use reasonable care” in classification can lead to serious consequences, from delayed shipments to legal trouble.

Here’s a breakdown of the US Code (19 USC Section 1592):

How to avoid compliance issues

In June 2025, the US Court of Appeals for the Ninth Circuit upheld a $26 million jury verdict against an importer that knowingly filed false customs declarations to dodge nearly 200% antidumping duties on welded outlets from China.

Misclassification and false statements can escalate into multimillion-dollar fraud cases under Section 1592 and related laws. Here’s how to avoid the same fate:

• Do your due diligence: Always double-check the current HTS database before shipping.
• Keep records: Document how you determined the classification in case Customs asks for proof.
• Review regularly: Codes and duty rates change; review your classifications annually, or more often if you’re importing trending or tech products.
• Get expert help: When in doubt, request a binding ruling from CBP, or consult a licensed customs broker.
• Stay updated: Tariffs shift with trade policy. Shopify’s guide on navigating tariffs is a good starting point for staying current.

Tools for HTS code classification

Here are a few ways to get your HTS code classification right before your shipment hits US customs:

USITC search database

The official USITC HTS search tool is the gold standard. You can search by keyword (e.g., “cinnamon”), code number, or chapter.

Start broad, then refine. “Tea” will land you in Chapter 9; from there, you can narrow to “green tea, retail packs.”

Automated HTS classification services

If you don’t want to live in tariff tables, there are automated tools that speed things up:

• Platforms like Avalara or Zonos use AI to classify products and can integrate with your ecommerce setup to help with duty/tax calculation and HS/HTS lookups.
• Some fulfillment partners and carriers (e.g., DHL, FedEx) also provide HS/HTS lookup services as part of their onboarding.
• If you’re selling cross-border with Shopify’s Managed Markets, it automatically assigns HS codes for your products and keeps them updated with tariff changes.

Working with customs brokers

Sometimes, automation gets you only so far. If you’re dealing with complex products with mixed materials, high-value shipments, or multiple trade agreements in play—that’s when a licensed customs broker can make all the difference.

A customs broker can:

• Interpret gray areas in classification and even liaise with customs authorities on your behalf.
• File paperwork correctly on your behalf.
• Even request a binding ruling from CBP to lock in your code (and avoid disputes later).

How to add HS codes to your Shopify goods

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.

Here’s how to add an HS code to your goods in the Shopify admin:

1. Log into your Shopify admin and go to Products.
2. Select the product you want to update.
3. Scroll to the Shipping section and click Add customs information.
4. In the pop-up/customs information area:
1. Select the country/region of origin for that product
2. Add the HS code (six-digit standard); if you start typing product descriptions, Shopify suggests matching codes
5. (Optional) If you need region-specific codes (for markets you sell to), there is typically an option to add additional HS codes by country/region.
6. Save changes.

If you have a lot of products:

• Use Shopify’s Bulk Editor. Go to Products, select multiple items, click Bulk edit, add the “Harmonized system code” column, and enter codes. 
• Or use third-party apps like Matrixify to export your product data, update customs information (HS codes and origin), and re-import.

Note: As of August 29, 2025, the US no longer has a de minimis threshold. Every shipment entering the US can be subject to duties and import taxes, regardless of value. To collect duties at checkout, go to Settings > Taxes & Duties in your Shopify admin. Toggle on the setting for importing/shipping internationally, and set the system to calculate import taxes/duties at checkout.

The future of HTS codes

Tariff classifications can potentially change based on the following trends and future developments in international trade:

• Artificial intelligence: The supply chain industry is already using artificial intelligence to speed up manual processes. You could use similar technologies to locate accurate HTS codes when categorizing new products (rather than scanning the database manually).
• Trade agreements or conflict: The WCO committee meets twice a year to discuss any changes to HTS codes. These changes can be impacted by geopolitical tension or new trade agreements between countries, so it’s worth checking for regular updates on the USITC website.
• Green trade policies: Growing consumer demand for sustainable products means that the latest innovations will require new HTS codes. Some countries may also favor sustainable or eco-friendly products with HTS codes that have lower duties and taxes.