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Harmonized tariff code

Learn about Harmonized Tariff Codes, their crucial role in international trade, and how they standardize product classification for customs duties and trade statistics.
Sarah Dotson

What is a Harmonized Tariff code?

A Harmonized Tariff code (HTS code) is a standardized numerical method of classifying traded products. This international system, used by customs authorities worldwide, provides a uniform classification structure for identifying products, determining import duties, and collecting trade statistics.

Understanding Harmonized Tariff classification

The system uses a hierarchical structure of up to 10 digits to classify products with increasing specificity. The first six digits are internationally standardized, while countries can add additional digits for further classification detail.

Key components of tariff codes

Code structure

Harmonized Tariff codes contain:

  • Chapter (2 digits)
  • Heading (4 digits)
  • Subheading (6 digits)
  • National tariff lines (8-10 digits)

Applications in international trade

Harmonized Tariff codes serve multiple purposes:

  1. Duty rate determination
  2. Trade statistics collection
  3. Rules of origin verification
  4. Export control compliance
  5. Trade agreement administration

Impact on global commerce

These codes facilitate:

  • Consistent product classification
  • Accurate duty assessment
  • Statistical analysis
  • Trade compliance
  • International communication

Best practices for classification

Organizations should maintain:

  • Regular code reviews
  • Documentation procedures
  • Compliance monitoring
  • Staff training programs
  • Update protocols