In global trade, few numbers carry as much weight as your HTS code.
These ten digits, tucked into shipping paperwork and often overlooked, determine your duty rates, compliance risk, and even whether your product qualifies for exclusions under free trade agreements (FTAs). But with constant policy updates, including the latest reciprocal tariffs and enforcement tightening, it's never been more important to get your classification right.
That’s why we built the HTS Classification Guide—a step-by-step resource to help you get the classification right before it costs you time, money, or credibility.
Download the HTS Discussion & Discovery Guide
What is HTS?
HTS, short for Harmonized Tariff Schedule, is the system the U.S. uses to classify imported goods. It stems from the Harmonized System (HS) developed by the World Customs Organization (WCO) and used by over 200 countries.
The U.S. version is officially known as the Harmonized Tariff Schedule of the United States (HTSUS), maintained by the U.S. International Trade Commission (USITC). While U.S. exports are classified under Schedule B, imports rely on the HTS.
Each HTS code follows a globally recognized structure:
This classification system isn’t just bureaucratic red tape. The first six digits (HS Codes) are harmonized globally for countries under the International Harmonized System, while the last four are specific to the U.S. tariff rates and used for tracking trade data.
Read More: Demystifying HTS Codes: How Silq Simplifies Tariffs and Duties for You
Why HTS Classification Matters More in 2025
In March 2025, U.S. Customs and Border Protection (CBP) uncovered significant compliance issues, identifying $310 million in unpaid duties and fees from undervalued or improperly declared goods entering the country.
This represents a staggering 10,590% increase compared to the $2.9 million assessed in February, marking a significant increase in enforcement activity. The number of audits completed also surged by over 150% month-over-month, reflecting a shift in CBP’s operational focus
Between CBP enforcement, shifting FTA rules, and increased scrutiny on origin documentation, brands can’t afford to treat product classification as an afterthought.
The HTS number determines:
- Your duty rate and tariff exemptions
- The compliance exposure
- Eligibility under free trade agreements
- Antidumping or countervailing duty rulings liability
- Your documentation requirements with government agencies
Misclassify, and you might trigger unexpected tariff rates, fail an audit, or worse—miss the chance to recover costs through tariff exclusions.
Common HTS Code Pitfalls to Avoid
At a glance, HTS codes look like just numbers. But they’re backed by an intricate nomenclature system built by the World Customs Organization (WCO) and tailored by the U.S. International Trade Commission (USITC).
Here’s what can trip up even seasoned logistics pros:
- Multiple possible classifications for a single product
- Vague or outdated descriptions in commercial invoices
- Overreliance on supplier-provided codes
- Incomplete documentation for CBP and PGAs
- Confusion between Schedule B and HTSUS for U.S. imports and exports
That’s exactly what our guide is built to give you. Here are some areas where Harmonized Tariff System classification may prove to be tricky:
1. Copy-Pasting from Another Product
Two sweaters made from different blends? Different subheadings, different duty rates.
2. Ignoring Chapter Notes and Explanatory Notes
The HTSUS includes Chapter Notes, Additional U.S. Notes, and General Rules of Interpretation (GRIs). These help clarify ambiguous classifications.
3. Not Reviewing Prior Rulings
The Customs Rulings Online Search System (CROSS) lets you check previous decisions by U.S. Customs and Border Protection (CBP). Don’t reinvent the wheel—see how similar goods have been classified.
4. Forgetting About Valuation Rules
If you provide assists like tools, dies, or design services, you’re legally required to include their value in your customs declaration.
What’s in the Guide: HTS Discussion & Discovery
Inside, you’ll find:
📋 Checklist of essential HTS data to collect
From product function, materials, and country of origin to your current importer codes and instructions to brokers.
🔍 Deep dives into classification nuances
- Assists and valuation implications
- Antidumping and countervailing duties (AD/CVD)
- FTA eligibility under USMCA, CAFTA-DR, and others
- Prior customs rulings
📊 Bonus resources
- A breakdown of the 10-digit HTS code structure
- Linkable lookups from USITC.gov, CROSS, and CBP FAQs
- HTS misclassification pitfalls (and how to avoid them)
HTS Code Strategic Applications
The best shippers don’t just classify—they optimize for profits.
- Use Classification to Reduce Costs
Are you splitting SKUs unnecessarily? Could reengineering a product qualify it for a lower rate under a different nomenclature? Classification can be a strategic lever.
- Align Product Development with Tariff Strategy
Early input from logistics teams can help product managers choose materials or functions that qualify for lower duty rates.
- Prepare for GRIs and Rulings Challenges
When in doubt, CBP allows importers to request binding rulings. These preempt risk and give you a defensible position in case of audits.
When to Revisit Your HTS Codes
You probably don’t have time to reclassify every product every quarter. But if your business is doing any of the following, now’s the moment to dig in:
- Launching new SKUs with different form, function, or materials
- Sourcing from a new country, especially for steel or aluminum goods
- Cross-checking with your customs broker or updating broker instructions
- Exploring duty-saving strategies like FTZs or trade program eligibility
- Preparing for a CBP audit or self-assessment review
Resources Worth Bookmarking
Bonus: Trying to stay ahead of audits, duty hikes, and origin documentation headaches? Try Silq Edge – our free consultation package, including HTS code reviews, factory audits, and shipment tracking. That’s $1,200 in value, built to help you get classification (and everything downstream) right from the start.
Ready to Level Up Your HTS Classification Strategy?
At Silq, we’ve seen too many companies leave classification to chance. That’s why we created the HTS Discussion and Discovery Guide—a free, downloadable resource to:
- Walk your team through what data to collect
- Identify AD/CVD risks
- Evaluate FTA eligibility
- Prepare for exclusions and rulings
Still have questions? Join our next webinar on tariff strategy for premium goods importers, where we break down the tariff strategy of a 100-year-legacy brand and have a live Q&A session with supply chain experts.
