All products imported and exported to and from the United States have Harmonized System (HS) and Harmonized Tariff Schedule (HTS) codes. Complying with these codes is critical — any errors can result in penalties for your business. This guide explains HS versus HTS and how to use these codes for your products for international trade.
What Are HS Codes?
HS codes are universal six-digit codes that classify goods and calculate tariffs for international trade. The World Customs Organization created and maintains these codes for a standardized system to streamline trade. Over 200 countries and territories use these codes for import classification and compiling data. The latest edition of HS codes has over 5,000 headings and subheadings.
The HS code classifies a product based on its nature, composition and intended use. The first two digits are the chapter — the broad category based on the product’s nature. The last four digits classify the material, function and manufacturing process.
What Are HTS Codes?
HTS codes are seven- to 10-digit codes that provide tariff rates and statistical data for products imported into a country. HTS codes are based on the HS system. The first six digits of the HTS code are the same six digits that classify the product globally. The next four digits are country-specific extensions that provide duty rates and statistical information for the country’s entry.
The codes and how they’re maintained are different for every country. For example, HTS codes in the United States, also called HTSUS codes, are 10 digits long. The European Union uses eight-digit codes known as Integrated Tariff of the European Union (TARIC) codes.
HS Codes and HTS Codes Similarities
HS and HTS codes are critical classification systems that identify and track products. The similarities between these codes include:
- Same first digits: The first six digits of HS and HTS codes are the same since the HS code system is the foundation for the HTS code system.
- Regulatory compliance: HS and HTS codes ensure products comply with health and safety, intellectual property and environmental regulations. The codes classify the products so that they can be tracked and monitored in trade.
HS Codes and HTS Codes Differences
While HS codes are part of HTS codes, these classification systems are different in these ways:
- Code length: HS codes are six-digit systems, while HTS codes are seven to 10 digits long.
- Global versus country-specific: HS codes are standardized numbers that classify goods internationally, so they’re universal. HTS codes have additional classification data that make the code specific to the country.
- Tariff rates: HS codes identify products and collect data for international trade. HTS codes are used to calculate the customs taxes and duties that apply to the shipment when it enters a country. These costs vary based on the product, country of origin and restrictions and regulations that apply to the product.
EMO Trans Is a Customs Expert
International trade and customs can become complicated due to the various regulations and standards between countries. We understand these complexities and will help your company navigate them. EMO Trans is a full-service customs brokerage firm that can be your partner for international business deals. We have worked in the customs industry in the United States since 1972 — you can count on our services to improve shipment visibility while reducing shipping costs.
When you choose EMO Trans as your customs expert, you’ll benefit from our:
- Experience with HS and HTS codes: We are highly experienced with HS and HTS codes. We’ll help you navigate these systems and ensure you’re using the correct code.
- Commitment to compliance: Our team completes training and audits regularly to stay up to date on customs regulations and requirements. We’ll minimize your risk of noncompliance in the future.
- Customized solutions: We are flexible to tailor our services to your unique requirements. You’ll receive only the services you need to stay compliant and effectively track your shipments.
Request a Quote for Our Customs Services
EMO Trans has the knowledge and experience you can trust for customs services. Take advantage of our custom global logistics solution with a personal touch to ensure we meet all your needs.
Choose EMO Trans as your customs broker — request a quote for our services to get started today.