HTS Code (Harmonized Tariff Schedule)
Definition
The 10-digit U.S. classification number assigned to every imported product. It determines the duty rate you pay.
Want a deeper explanation?
Your HTS code is one of the biggest drivers of landed cost you can influence. Product design and materials can change classification, which is why some brands review codes when duties rise.
The importer of record is responsible for using the right code. Watch for: HTS codes copied from a supplier's paperwork without review, which may not match how the product is actually made.
Example
Ceramic mugs and glass mugs fall under different HTS codes with different duty rates, so a misclassification can mean overpaying or a penalty for underpaying.