Harmonized Tariff Schedule
Harmonized Tariff Schedule An internationally standardized nomenclature system for classifying traded products, used by customs authorities worldwide to identify products for applying duties and taxes.
Latest Update (March 2025)
The USITC has announced a series of HTSUS updates related to ongoing trade negotiations and clarifications for emerging technology products. Importers should review the changes that take effect on July 1, 2025.
View the official USITC noticeWhat It Means
Harmonized Tariff Schedule in Simple Terms
The Harmonized Tariff Schedule (HTS) is essentially an organized product catalog for international trade. It assigns specific numerical codes to every product that crosses borders, enabling countries to consistently identify goods for customs purposes. Think of it as a universal classification system that helps determine which tariff rates apply to your imports.
Every country uses this standardized system, but may add country-specific digits for more detailed classification. In the U.S., it's called the Harmonized Tariff Schedule of the United States (HTSUS). Getting the correct classification is critical, as it directly determines the duties and taxes you'll pay and whether special trade provisions apply to your goods.
Historical Timeline
HS Implementation
The Harmonized System (HS) first entered into force internationally
U.S. Adoption
The United States implemented the HTSUS, replacing the previous Tariff Schedule of the United States (TSUS)
HS 2002
Major update with expanded coverage of wood, paper, waste, and technology products
HS 2007
Added focus on technology products and environmental/social monitoring
HS 2012
Expanded classifications for food security and hazardous materials
HS 2017
Updated for agricultural, chemical, wood, textile, and machinery sectors
HS 2022
Latest version with new provisions for emerging technologies, drones, smartphones, and COVID-related goods
Real-World Example
Classification Example: Bluetooth Headphones
Let's walk through classifying wireless Bluetooth headphones with active noise cancellation:
| Level | Code | Description | Logic |
|---|---|---|---|
| Section | XVI | Machinery and Mechanical Appliances | Electronics fall under this section |
| Chapter | 85 | Electrical Machinery and Equipment | Audio equipment is in this chapter |
| Heading | 8518 | Microphones, Loudspeakers, Headphones | Specifically covers headphones |
| Subheading | 8518.30 | Headphones and Earphones | Specific 6-digit code for headphones |
| U.S. Tariff | 8518.30.2000 | Other headphones and earphones | Final classification with 4.9% duty rate |
This classification determines:
- Base duty rate of 4.9% ad valorem for most countries
- Eligibility for free trade agreements with 0% rates under USMCA, UKFTA, etc.
- Additional duties if affected by Section 301 tariffs when from China
- Documentation requirements including FCC compliance for wireless devices
Misclassification could result in incorrect duties paid, penalties, delayed clearance, or even seizure of goods. Importers can request binding rulings from CBP for certainty on complex classifications.
HTS Classification Assistant
Use our interactive tool to find the correct HTS code for your products and determine applicable duty rates
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Request HTS Classification HelpFrequently Asked Questions
The Harmonized System (HS) refers to the international 6-digit classification developed by the World Customs Organization. The Harmonized Tariff Schedule (HTS) refers to any country's implementation that adds national subdivisions beyond the 6 digits. The Harmonized Tariff Schedule of the United States (HTSUS) specifically refers to the U.S. implementation with 8-10 digits. Think of HS as the global standard, while HTS and HTSUS are country-specific implementations with additional detail.
The importer of record bears legal responsibility for correct classification, even when using a customs broker. While brokers often assist with classification, they rely on product information from the importer and the ultimate legal liability remains with the importer. If you use a broker, you should review their classifications rather than simply accepting them. Some importers obtain binding rulings from customs authorities for certainty on complex products.
For U.S. imports, you must use the full 10-digit HTSUS code on entry documentation. Using only the international 6-digit code or an 8-digit code is insufficient and will result in rejected entries. For exports from the U.S., you use the Schedule B codes (similar to HTSUS but for exports) at the 10-digit level. If you're just researching potential duty rates, the 8-digit level usually shows the duty rate, while the final two digits are often for statistical purposes only.
Using incorrect HTS codes can have several consequences: (1) Underpayment of duties, resulting in additional duties owed plus interest and possibly penalties; (2) Overpayment of duties, which may be difficult to recover; (3) Improper compliance with other government regulations tied to HTS codes; (4) Ineligibility for trade preference programs you might have qualified for; and (5) For significant or repeated misclassifications, customs penalties can reach the full value of the merchandise for fraud or up to 40% for negligence.
Classification involves several steps: (1) Understand your product's characteristics, components, function, and intended use; (2) Use the General Rules of Interpretation (GRIs) that provide the legal framework for classification; (3) Start with section and chapter notes in the HTSUS; (4) Work through the hierarchy from chapter (2-digit) down to the full code; (5) Check for similar products using the searchable USITC database; (6) For complex products, consider using explanatory notes published by the WCO; (7) Research previous customs rulings on similar products; and (8) For certainty on complex items, request a binding ruling from Customs.