Choosing the right HTS code can mean the difference between a smooth customs experience and costly delays or penalties.
There is one number that can determine how much duty you pay, how smoothly your goods move through customs, and whether you face unexpected delays or penalties.
That number is your HTS code.
This code is required for every product you import into the United States.
It tells U.S. Customs what your goods are, how they’re used, and how they should be treated at the border.
If you’re importing something for the first time or dealing with a product that has multiple materials or functions, finding the right code can feel overwhelming.
But it doesn’t have to be.
In this article, we explain what an HTS code is, what happens when you use the wrong one, and why it’s always best to consult an expert.
Every product you import into the U.S. needs an HTS code, which is a 10-digit number that classifies it and tells U.S. Customs what it is and how it should be treated.
The code determines how much duty you’ll pay, whether your goods qualify for trade programs, and what paperwork or restrictions apply.
You don’t need to memorize how tariff classification works or how the code is structured.
But you do need to choose the right one.
An incorrect HTS code can lead to shipment delays, unexpected fees, or even seizure of your goods.
U.S. Customs and Border Protection (CBP) takes classification seriously, and, as outlined in the Penalties Program, fines depend on the degree of culpability.
|
Degree of culpability |
What it means |
If no duty is owed |
If duty is lost |
|
Negligence |
If it results from failure to exercise reasonable care and competence |
Up to 20% of the product’s value |
2x the duty loss (or the domestic value, whichever is less) |
|
Gross negligence |
If commission or omission was done with actual knowledge of or wanton disregard for the relevant facts |
Up to 40% of the product’s value |
4x the duty loss (or the domestic value, whichever is less) |
|
Fraud |
If commission or omission was done knowingly (voluntarily and intentionally) |
Domestic value of the goods |
Domestic value of the goods |
There are several online tools to help you find HTS codes, including the U.S. Harmonized Tariff Schedule.
While online tools are helpful for research or exploration, they cannot replace expertise or judgment.
Using an online tool for classification can easily lead to choosing the incorrect HTS code—because the process involves many technical details.
Moreover, when a product could fit more than one heading, includes mixed materials, or is sold as a set, things can get complicated very fast.
One assumption or simple mistake can result in incorrect duty rates, reworks, corrections, shipment delays, and avoidable compliance costs.
Tariff classification is a lengthy process that extends beyond looking up a code.
It includes:
Customs brokers specialize in doing all of this, helping you classify your goods with confidence.
They also have extensive knowledge and experience in interpreting tariff schedules, analyzing product specifications, and working with the CBP.
Finding the right HTS code isn’t always straightforward, especially if your product is new, technical, or doesn’t fit into a category. That’s where we come in.
At Cole International, we offer customs brokerage and trade consulting services to help U.S. importers navigate changing regulations with confidence and ensure compliance.
Our customs experts work with importers every day to:
We don’t believe in guesswork. We get it right the first time.
If you need to find the correct HTS code for your imports, please reach out to one of our trade professionals.