How to Classify Products Using the HTS Schedule

What Is the Harmonized Tariff Schedule?

The Harmonized Tariff Schedule of the United States (HTSUS) is the legal framework that determines the duty rate applied to every product imported into the country. Maintained by the US International Trade Commission (USITC) and enforced by US Customs and Border Protection (CBP), the HTS assigns a unique 10-digit code to every importable commodity. Getting this code right is not optional — it directly affects how much duty you pay, which trade agreements apply, and whether additional regulatory requirements kick in.

Structure of the HTS: Chapters, Headings, and Subheadings

The HTS is organized hierarchically. At the top level are 99 chapters, grouped into 22 sections by material or industry. Within each chapter, four-digit headings describe broad product categories, and six-digit subheadings add specificity. The first six digits are internationally harmonized — every country using the HS system shares them. The remaining digits (7 through 10) are US-specific and determine the precise duty rate, statistical suffix, and any special programs like USMCA or GSP.

The General Rules of Interpretation (GRI)

Classification is governed by six General Rules of Interpretation (GRI) that must be applied in sequence. GRI 1 is the most important: classify according to the terms of the headings and any relative section or chapter notes. Only when GRI 1 does not resolve classification do you move to GRI 2 through GRI 6. Most classifications are resolved at GRI 1, but composite goods, sets, and unfinished articles frequently require GRI 2 through GRI 6.

1. GRI 1: Classification by heading terms and section/chapter notes.
2. GRI 2(a): Incomplete or unfinished articles classified as complete if they have the essential character.
3. GRI 2(b): Mixtures and combinations of materials — classify by material or component that gives essential character.
4. GRI 3: When goods are classifiable under two or more headings — most specific heading, essential character, or last in numerical order.
5. GRI 4: Goods not classifiable under GRI 1-3 — classify under the heading for most analogous goods.
6. GRI 5: Cases, containers, and packing materials — specific rules for packaging.
7. GRI 6: Classification at the subheading level follows the same principles as heading-level classification.

Step-by-Step Classification Process

1. Identify the product completely: material composition, function, intended use, manufacturing process.
2. Determine the relevant section and chapter using the section and chapter notes.
3. Read the chapter notes carefully — they frequently exclude or include specific products.
4. Identify the four-digit heading that best describes the product under GRI 1.
5. Narrow down to the six-digit subheading using the same GRI principles.
6. Apply the US-specific digits (7-10) to determine the exact duty rate and statistical suffix.
7. Verify against CBP rulings and cross-reference with any applicable trade programs.

Common Pitfalls in HTS Classification

The most frequent mistake is classifying by product name rather than by the terms of the tariff. The HTS does not care what you call a product commercially — it classifies based on material composition, function, and construction. A "sports watch" might be classified under optical instruments if it contains specific sensor technology. A "laptop bag" might fall under different headings depending on whether it is textile, leather, or plastic.

How TariffPro Simplifies Classification

Manual classification requires deep knowledge of the HTS structure, GRI rules, and hundreds of chapter notes. TariffPro uses AI trained on millions of classification decisions to suggest the correct HTS code in seconds. It analyzes product descriptions, identifies key classification criteria, and cross-references CBP rulings automatically. The result: 95% first-pass accuracy with full audit trails, dramatically reducing the time and risk of manual classification for US importers.