It doesn’t matter whether you’re importing minivans or monogrammed keychains—if you label a product with the wrong Harmonized Tariff Schedule (HTS) code, you might have to deal with delays, penalties, and duties.
In 2024, Ford received a $365 million bill from the US government for deliberately misclassifying cargo vans under the wrong HTS code. The company was calling cargo vans “passenger vehicles” to dodge higher import duties.
But HTS code challenges aren’t just a big-company problem. When Bogg, a tote bag company, accidentally classified a keychain as stainless steel instead of zinc alloy, the duty rates increased by 30%.
In this guide, we’ll break down what HTS codes are, how to get them right, and what tools you can use to avoid expensive paperwork.
Table of contents
- What is an HTS code?
- HTS codes: A glossary
- HTS code vs. HS code: What’s the difference?
- A brief history of HTS codes
- Structure of HTS codes
- How HTS chapters work
- How HTS codes and tariffs work
- HTS code mistakes and penalties
- Tools for HTS code classification
- How to add HS codes to your Shopify goods
- The future of HTS codes
- HTS codes FAQ
What is an HTS code?
Harmonized Tariff Schedule (HTS) is 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 identify 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 reviews your paperwork, flags errors, and decides whether your shipment clears or sits.
HTS codes: A glossary
The world of international commerce and imports can feel complicated, in no small part due to a slew of terms and acronyms. Here are some of the governing bodies and terms you’ll encounter as you navigate 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.
The WCO maintains the Harmonized Commodity Description and Coding System, better known as the Harmonized System (HS). The HS is recognized and used by nearly every country a business might ship to or source from, making it the closest thing global trade has to a universal language for classifying goods.
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. 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 subheading within the heading.
Though HS codes are important 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 also 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.
US International Trade Commission (USITC)
The United States International Trade Commission (USITC) is an independent, nonpartisan federal agency overseeing a range of trade-related mandates, including publishing and maintaining the Harmonized Tariff Schedule (HTS).
For US-based businesses, and anyone shipping to the US, the HTS is the first stop for official guidance. It sets the tariff rates and statistical categories for all imported merchandise, and covers more than 17,000 unique 10-digit classification codes.
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 US (Schedule B)
Schedule B is the statistical classification for goods exported from the US. It is maintained and published by the US Census Bureau and is based on the HS.
HTS vs. Schedule B codes
Schedule B codes are 10-digit international codes that explain the statistical classification for goods exported from the US. Schedule B is maintained and published by the US 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 US Census Bureau.
HTS code vs. HS code: What’s the difference?
The HS code is the international foundation: a six-digit number assigned by the WCO and recognized by more than 200 countries. The number identifies what a product is at a global level—the category, the material, and the function.
Every country that participates in international trade uses HS codes as the base layer of their tariff system.
The HTS code is the US-specific extension of that foundation that takes the same six-digit HS code and adds four more digits, bringing it to 10, to capture the finer classifications the US needs for its own duty rates and import requirements.
When to use HTS codes vs. HS codes
Use the HS code when you’re shipping internationally or sourcing from overseas suppliers. It’s the common language between you and any customs authority outside the US.
Use the HTS code when you’re importing into the US specifically. The CBP uses it to calculate duties, enforce trade restrictions, and track import data. If you’re filing entry documents or trying to figure out what tariff rate applies to your product in the US market, HTS is what you need.
Note: If you sell globally and ship into the US, you’ll likely need both—the HS code to communicate across borders, and the HTS code to clear US customs.
A brief history of HTS codes
The HTS was officially rolled out in the US on January 1, 1989, replacing the older Tariff Schedules of the US.
This shift aligned US trade classification with the international Harmonized System, maintained by the World Customs Organization.
Today:
- The USITC maintains and updates the HTS annually
- 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:
- Chapter. The first two digits identify the chapter in the international HS.
- Heading. The next two digits identify the heading within that chapter in the international HS.
- Subheading. The following two digits identify the international HS subheading within that chapter.
- Subheading (tariff rate lines). These two digits establish US duty rates according to the HTS.
- Statistical suffix. The last two digits are US statistical suffixes that collect trade data according to the HTS.
Take a look at this example of an HTS in action and see how you would classify the HTS of “certified organic green tea (flavored).”
Here’s how the full ten 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 11,000 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.
The individual chapters are available to download in multiple formats, including HTML, CSV, XLS, and JSON, so you can work with the data in whatever way suits your workflow. The HTS is updated regularly, sometimes multiple times a year, to reflect executive orders, trade agreement changes, and WCO recommendations.
To see how it works in practice, 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 (i.e., 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:
- Column 1 (General). The rate of duty applied to imports from countries with which the US maintains “normal trade relations.”
- Column 1 (Special). The rate of duty applied to special tariff treatment programs such as free trade agreements or the generalized system of preferences.
- Column 2. The rate of duty applied to imports from countries the US 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.
The HTS code of a product doesn’t just tell you how much you’d pay to import it, it can also help you determine the most cost-effective place to source your products from.
How to calculate import duties
The type of duty rate determines how you run the math.
- Ad valorem. Multiply the customs value of your goods by the duty rate percentage. If you’re importing $10,000 worth of goods with a 5% ad valorem rate, your duty is $500. The customs value typically includes the cost of the goods, freight, and insurance.
- Specificduties. Multiply the specific tariff rate by the number of units. If the rate is 42¢ per kilogram and your shipment weighs 500 kilograms, you owe $210, regardless of what the goods are worth.
- Compoundduties. Take an imported tailored suit with a compound tariff of $20 per suit, plus 7% of its value. If the suit is valued at $500, the duty would be $20 + ($500 x 0.07) = $55.You run both calculations and add them together.
Pro tip: Your duty rate can shift depending on where your goods are coming from. So if you’re sourcing from a country the US has a free trade agreement with, like Canada or Mexico, under USMCA, some or all duties may be reduced or eliminated entirely.
HTS code mistakes and penalties
If you use HTS codes incorrectly, your shipment might get stopped at the border, you could rack up extra duties, or you could 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 business owners make:
- Picking the cheaper code. 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) or listing cargo vans as passenger vehicles (like Ford).
- Copy-pasting codes without due diligence. Relying on old invoices or third-party templates instead of verifying in the current HTS can land you in hot water.
- Misclassifying apparel by fiber content or construction. A hoodie that’s 51% cotton versus 51% polyester lands in a different HTS subheading, with a different duty rate. The same applies to knitted versus woven construction.
- Getting tripped up by product bundles and kits. When you ship a product with accessories—say, a skin care device packaged with a cleanser and a USB charging cable—each component may carry a different HTS code and duty rate.
- Underclassifying electronics by function. A product listed as a “decorative light” and a “smart home device with LED display” can look nearly identical on a warehouse shelf, but they sit in completely different HTS chapters with different duty rates.
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 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 U.S.C. § 1592):
| Penalty type | What it covers | Possible consequences |
|---|---|---|
| Civil (Negligence) | Failure to exercise “reasonable care” in classification or valuation | Fines up to two times the lawful duties lost, or up to 20% of the dutiable value of the goods |
| Civil (Gross negligence) | Willful disregard of importer obligations | Higher fines: up to four times the duty loss, or 40% of the value of the goods |
| Civil (Fraud) | Knowingly and intentionally misclassifying or undervaluing imports | Maximum fines: up to the full value of the goods, plus seizure and forfeiture |
| Criminal | Fraudulent importation or false statements to Customs | Criminal prosecution, heavy fines, and possible imprisonment (up to two years per offense) |
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.
In an episode of the Shopify Masters podcast, Mush Studios founder Jacob Winter discusses the process: “If it took an extra two months for me to make sure that the forwarding process of these rugs [was] legal and accurate and correct, then I took that time and made it work.”
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, and it’s free. You can search by keyword, code number, or chapter, and results show you the full rate structure: general duty rates, special rates for trade agreement partners, and the Column 2 rate that applies to a small set of non-market economy countries.
A few things worth knowing before you start:
- Search broad, then narrow. Type a plain-language keyword like “cinnamon” and the tool returns every heading and subheading where that term appears. From there, you drill down—from chapter to heading to subheading to the 10-digit statistical suffix that carries the actual duty rate.
- Check the notices banner. The USITC posts active trade policy notices at the top of the search interface. As of the 2026 HTS Revision 4, for example, the tool is displaying a notice about Executive Order 14389, which affects certain IEEPA ad valorem duties.
- Use the tabs and download options. Alongside your search results, the tool surfaces Chapter Notes and Section Notes; these are the legal texts that govern how goods in that chapter are classified, and they override keyword intuition.
- Cross-check the stat suffix. The 10-digit code–the last two digits after the eight-digit HTS number—is used for statistical reporting and can affect which special rates apply. Don’t stop at the eight-digit level; always confirm the full 10-digit code before filing.
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, the platform automatically assigns HS codes for your products and keeps them updated with tariff changes.
These tools are a good fit for simple, single-material products with a clear function. For anything more complex, like mixed materials or items that could fall into multiple categories, treat the automated result as a starting point. A misclassification is still your liability, whatever tool produced it. When in doubt, bring in a licensed customs broker.
Working with customs brokers
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
- 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:
- Log into your Shopify admin and go to Products.
- Select the product you want to update.
- Scroll to the Shipping section, make sure that the Physical product setting is activated.
- Add customs information to your product details:
- Select the country/region of origin for that product.
- Add the HS code (six-digit standard); if you start typing product descriptions, Shopify suggests matching codes.
- (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.
- 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.
- Use third-party apps. Apps like Matrixify 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 (AI). The supply chain industry is already using AI 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.
Looking further ahead, the WCO launched a project at its June 2025 meeting to prepare an even more extensive revision for 2033. The hope is not just to add new classifications, but to reform the system as a whole, which has remained largely unchanged since it came into force in 1988.
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HTS codes FAQ
Can HTS codes change?
HTS codes can change as new products emerge, global trade agreements differ, and countries prefer specific imports. The USITC government website is the best place to stay updated with any changes to HTS codes.
How do I find my HTS code?
Use the official USITC HTS search tool to look up your product by keyword or category. If your goods are tricky to classify, consider requesting a binding ruling from CBP or working with a licensed customs broker.
What is an example of an HTS code?
Green tea, in small retail packs, has the HTS code 0902.10.90.15.
0902 = Tea
.10 = Green tea, not fermented
.90 = Other
.15 = Certified organic, retail packs under 3 kg
What happens if I use the wrong HTS code?
At best, you’ll overpay duties. At worst, your shipment could be delayed, seized, or flagged for penalties. CBP can issue civil fines, and in cases of fraud, even criminal charges under 19 USC Section 1592.
Can I automate HTS code classification?
Yes. When you use Managed Markets, Shopify automatically assigns HS codes to your product catalog and adjusts them for country-specific restrictions. However, these auto-assigned codes may differ from what you originally entered, so double checking is still essential. Third-party tools like Avalara, Zonos, or FedEx/DHL platforms also provide code lookups. For complex products, automation plus a broker check is the safest route.





