What Is an HTS Code? A Beginner's Guide for US Importers

HTS Codes in Plain English

An HTS code is a 10-digit number that the US government uses to identify every product that enters the country. Think of it as a product's customs fingerprint. Each code tells CBP exactly what the product is, how much duty (tax) the importer must pay, and whether any special rules or restrictions apply. If you are importing goods into the United States, you need an HTS code for every single item in your shipment.

How to Read a 10-Digit HTS Code

Let us break down an example: HTS 0901.21.0045. The first two digits (09) identify the chapter — in this case, Chapter 9 covers coffee, tea, and spices. The first four digits (0901) are the heading — specifically, coffee, whether or not roasted or decaffeinated. The first six digits (0901.21) are the subheading — roasted, not decaffeinated. The remaining four digits (0045) are US-specific and determine the exact duty rate and statistical category.

Where to Find HTS Codes

• USITC HTS Online (hts.usitc.gov): The official, searchable version of the full Harmonized Tariff Schedule. Free to use.
• CBP CROSS Database (rulings.cbp.gov): Search binding rulings to see how CBP has classified similar products.
• Your customs broker: Licensed brokers classify goods daily and can provide HTS codes as part of their service.
• AI classification tools: Platforms like TariffPro analyze product descriptions and suggest the correct HTS code with confidence scores.

Why HTS Codes Matter for Your Bottom Line

The HTS code directly determines the duty rate you pay. A wrong code can mean paying more duty than necessary — or underpaying and facing penalties later. For example, a stainless steel kitchen utensil might have a duty rate of 3.4% under one subheading but 8.5% under another that covers similar-looking items with different functional characteristics. On a $500,000 shipment, that difference is $25,500 in additional duties.

Duty Rates and How They Work

Most HTS duty rates are expressed as a percentage of the goods' customs value (ad valorem). Some products have specific rates (e.g., $0.35 per kilogram), and some have compound rates (a percentage plus a per-unit amount). The general (Column 1) rate applies to most countries. Column 2 rates are higher and apply to a small number of countries without normal trade relations with the US.

Trade Preference Programs

Your HTS code also determines eligibility for reduced or zero-duty rates under trade preference programs. The most important for US importers include USMCA (United States-Mexico-Canada Agreement), which can reduce duties to zero for qualifying goods from Mexico and Canada, and the Generalized System of Preferences (GSP), which offers duty-free treatment for eligible products from developing countries. To claim these rates, you need both the correct HTS code and proper origin documentation.

Binding Rulings: Getting CBP's Official Answer

If you are unsure about how to classify a product, you can request a binding ruling from CBP. This is a written decision from CBP that tells you exactly how they will classify your product. Binding rulings are free, but they can take 30 to 120 days to receive. Once issued, they are legally binding on CBP — meaning your classification cannot be challenged as long as the product matches the ruling description. This is the gold standard for classification certainty.

Getting Started with Confidence

If you are a new importer, the most important step is to invest in accurate classification from day one. Whether you work with a customs broker, use classification software like TariffPro, or request binding rulings from CBP, the cost of getting it right upfront is always less than the cost of getting it wrong. TariffPro makes this easy for beginners by providing AI-powered classification suggestions with plain-language explanations of why each code was selected — so you learn as you go.