The Harmonized Tariff Schedule, also called the HTS Code, is a standardized numerical method that is used to classify traded products. This is very essential for international shipping and customs procedures to help determine the applicable duties, taxes, and regulations on the products that are being imported or exported. The HTS Code is based on a global harmonized system, which the World Customs Organization develops. Therefore, it plays a very important role for a business that is working as an e-commerce platform.
Below, we have mentioned everything you need to know about what HTS is and why it is so important for the business. So let’s jump right into the article and have a look at it.
What is an HTS code
What is HTS Code? If you are also wondering the same thing, then the HTS Code is a system that is used to classify goods in international trade. This is the standardized system that is used to name and number products so that they can be classified and traded globally. The HTS Code is basically a 7 to 10-digit number that is used on imported products. The land of the number might vary according to the country. Generally, the first six digits of the HTS Code are derived from the Harmonized System.
Are HTS and HS Codes the Same?
Many people think that HTS and HS codes are similar; however, they are closely related but have slightly different purposes. The HS code is an international standardized system that the World Customs Organization develops. Over 200 countries use this system to classify goods. The 1st six digits of this code I use for product classification and form the basis of the global trade system.
On the other hand, the HTS Code is specific to the country. The HTS Code is built on the HS Code. This means that after the six digits of the HS code, the remaining digits are known as the HTS Code. This allows much more precision and identification of the products. It also helps with the application of the country-specific duty-specific policies and tariffs. Hence. The HS code is the global framework, while the HTS Code offers identification and is specific to the government.
How to Look Up HTS Codes?
You must know the right way of how to find the HTS Code. It is an important step in international trading so that accurate product classification can be done and customs issues can be avoided. The most reliable way to find the HTS Code is through the US International Trade Commission website. This website is up to date with the new versions of the HTS Code. Here you can search for a keyword, browse by category, or enter a product description to look up the HTS Code.
Proper guidance is also available when it comes to the HTS Code by the US Customs and Border Protection. The businesses can also get help from the commercial trade database. There are some software as well that will help you search for the HTS Code. If the products are complex and you are not able to look for the HTS Code, then there are licensed customs brokers that can help you with how to find the HTS Code.
How to Check Current Tax Rates Using HTS Codes
Below we have mentioned all the steps that you need to follow when it comes to checking the current tax rates using the HTS Code.
Sign up & log in NSS OMS
The first step is to go to the NSS OMS portal. If you are a new user, then you will need to register by providing all the important details. After you have registered, you can log in to the portal by using your credentials.
Input HTS Code
once you are successfully logged in navigate to the tariff or customs section. Here you need to type the HTS Code of the product you want to check the tax rate of. You can also search by the product description if you don’t have the exact code.
View Tax and Duty Rates
After clicking the search option, the system will display all the applicable tax rates. You can even find the import duties, VAT, and additional surcharges that come with the product.
Check for Trade Agreements
The product that you are checking can also come under any trade agreement, and the portal will show that it uses zero-rate duties and special rates that might be included with the product.
Download
Lastly, you can download the documentation or print the tariff details so that you can keep them for future reference.
How Do HTS Codes Work?
HTS Codes are basically used to classify imported goods. The US International Trade Commission manages this entire system. When the product is imported, the HTS Code is assigned to the product. Customs will then use this code to determine the tariff rate and any duties that come with this product.
This code also helps the customs official check import restrictions that can apply and ensure that the product complies with local regulations. Proper HTTPS code is very important for the classification because incorrect codes can lead to misclassification, delays, fines, and even overpayment of the duties. Therefore, this is an important part of importing products.
HTS Codes FAQs
Yes, both of these codes are quite different from each other. HS Code is the first six digits that are used globally, while the HTS Code is the remaining four digits that are specific to the country.
These codes are important because they help determine the duty rates, trade restrictions, and regulatory requirements when a product is being imported into a country.
The HTS Code can be found through the USTIC website, and even a customs broker can help you find the HTS Code.
Optimize HTS Codes for the Best Shipping Rates with NextSmartShip
Using the right HTS Code can also help in reducing shipping costs and avoiding customs duties. NextSmartShip is one of the best platforms to ensure the optimization of the HTS Code. They ensure that there are no delays in the delivery of the product and also reduce the duty rates to a minimum. This platform is also known for its amazing services and fulfillment processes. They can help streamline customs clearance and minimize taxes.
Therefore, if you’re trying to find a platform that can ship the products globally, manage all the complex product categories, and simplify the fulfillment process, then NextSmartShip is the ideal platform for you.
Conclusion
The HTS Code is one of the most crucial parts of international trading, as it ensures that goods are properly classified for customs and duty purposes. This code is a 10-digit code that helps businesses comply with the regulations of the trade and also helps with the duties and taxes calculation. The HTS Code is specific to the country and helps streamline the entire import and export process. Therefore, if you want to make the whole process simpler, then make sure to check out NextSmartShip for their amazing services.
