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Freight
Supply chain

HTS code classification

Learn how to classify products under the right HTS codes using the USITC API and Parabola’s product classification workflow.

How to bulk classify SKUs with the right HTS codes

As your product catalog expands, it’s critical to ensure each item is classified under the most accurate Harmonized Tariff Schedule (HTS) code. Incorrect or suboptimal classifications can result in higher duties, compliance issues, and unnecessary delays in customs clearance. But manually researching codes for each product—especially across large catalogs—is time-consuming and inconsistent.

With Parabola, you can automate HTS code classification at scale. Upload a list of product descriptions from your ERP and enrich each row with potential HTS matches using the United States International Trade Commission's API. Surface top matches and standardize results for downstream review or compliance validation.

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As soon as we launched the first component of the automation, we saw an increase in our top-line compliance figure. It’s almost like every week we hit a new all time best.
Alastair Streitz
Sr. Manager, Strategic Operations at Uber Freight
HTS code classification FAQs
What is HTS code classification?
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HTS code classification is the process of assigning the correct Harmonized Tariff Schedule code to a product based on its material, use, and construction. Each HTS code determines the applicable tariff rate and impacts how the product is treated at the border. Classifying products correctly is key for cost efficiency and customs compliance, especially when launching new SKUs or expanding internationally.

How to classify products with HTS codes in Parabola?
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  1. Start by using the Pull from CSV file step to upload a list of products with fields like SKU, product description, and category. Ensure you include columns with descriptive terms for accurate classification.
  2. Use Extract with AI to extract a list of key search terms from relevant columns
  3. Use the Enrich with API step to connect to the USITC HTS API and dynamically search based on those keywords
  4. To speed up the Flow, limit the data to only include relevant HTS chapters using the Filter rows step
  5. Enrich the HTS codes returned from the API with the full HTS hierarchy to analyze the complete definition of each code
  6. To identify codes that are the closest match, use the Categorize with AI step to score codes from 1-5 based on your initial description
  7. Analyze your highest-scoring HTS codes for each product to identify the correct HTS codes to use
Tips for HTS classification in Parabola?
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  • Make sure you've uploaded data that describes the item using specific keywords like material, use, and construction
  • After classifying your data, use Parabola's tariff scenario modeling Template to model out tariffs for different countries

What other resources are available on HTS code classification?
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  • To start building your own HTS code classification Flow, check out the Template above and Parabola University