What is an HTS Code?
Anatomy of an HTS Code
The Harmonized Commodity Description and Coding System (HS) is the mechanism by which international tariffs are standardized. Each country has its own Harmonized Tariff Schedule (HTS).
The description and coding system of global tariffs is an internationally standardized system of names and numbers for classifying products. Importers and Exporters the world over must classify all goods moved across international borders using the Harmonized System of the country of import. Every item you sell must be assigned an HTS code according to the Customs tariff schedule of the country from which you are selling.
The Harmonized Tariff Schedule of the United States (HTSUS) is organized into 22 sections and 99 chapters, accompanied with general rules of interpretation and explanatory notes.
The first 4 – 6 digits reflect the international nomenclature. At the eight digit level, the US can subdivide the classification for rates of duty and other purposes. The final two digits at the ten digit level are for statistical purposes. All US exporters are required to classify their products to the ten digit level.
Edit: Thank you to Mr Wind for pointing out my errors. The two digit level is the Chapter; four digit level is the heading; six digit and onward are the subheadings. Subchapters are not included in the HTS but are for reference only.
Here's an example of a Subheading:
The HTS Code is only part of the story though. In order to properly classify your products, you have to follow the General Rules of Interpretation (GRIs) including any additional rules specific to the US.