What is the difference between HS and HTS codes

HS code is the essential code that is needed by every party in international trade. Without the HS code, the exporter or importer will find problems exporting or importing products. Besides the HS code, there a quite similar codes, namely the HTS codes. Even these codes are sometimes interchangeable because of their similarity.  This makes beginners in international trade usually confused to understand of what the difference is between HS and HTS codes. This article will dive deeper into what is the difference between HS and HTS codes, the key functions, as well as tips on how to find the HS or HTS codes. 

What is the meaning of the HS code? 

HS code or Harmonized Standard (HS) code is a unique code established by the international organization called the World Customs Organization (WCO). This code has an important function for standardization codes that is internationally recognized to classify the products based on the category of traded product and its characteristics. HS code has become a requirement for the export and import process in international trade, and makes the customs checking process in the recipient country easier. 

HS code is very useful for the identification process during export and import. By adding this code, the customs officer will directly identify the products or goods and the country of origin to determine the tariff, taxes, quota, or other restrictions. The HS code also allows customs officers to know whether the products or goods are eligible to get the benefit of relaxations due to Free Trade Agreements (FTAs) that have been agreed upon by two or more countries. 

HS code is also commonly called the commodity code in the United Kingdom (UK) and the European Union (EU). However, the term HS code is more usual, and it is recognized internationally, and it is used by more than 200 countries around the world to export or import goods. The composition of the HS code is commonly six-digit numbers, and this is the figure of breakdown of the example of the HS code for textile or apparel products below. 

What are HTS codes? 

HTS codes, or known as Harmonized Tariff Schedule (HTS) codes for international trade in the United States and are developed by the government based on the HS code numbers that are recognized internationally. Therefore, these codes can be called the extension HS code from the United States to identify the tariff rates, quota, and other restrictions or relaxations based on the trade regulations. What is the difference between HS and HTS codes, that the HTS codes consist of long numbers, with around 8 to 10-digit number codes. 

If you want to export products or goods to the United States, there will be an additional code number after the basic HS code. The extension code number has been useful to make the products more thoroughly identified by the customs authority for the calculation of duties and statistical purposes. However, not only in the United States, but this additional series identification is implemented by most of the country around the world. Here is an example of HTS codes building for footwear to be exported to the United States. 

What are the Schedule B codes? 

On the one hand, the HTS codes have a function to identify the imported products in the United States. On the other hand, the Schedule B codes are the unique codes to identify the product from the United States to be exported to other countries. This code number is not used directly for international trade, but to identify the exported items in the United States for statistical purposes by the United States Census Bureau. Schedule B codes are created to record all of the exported products from the United States. 

What is the difference between HS and HTS codes, as well as Schedule B codes, is that they clearly differ in function and code length. However, the construction of Schedule B codes is quite similar to the HS codes. These codes are derived from the HS codes, and they have added an additional four-digit number behind them. Schedule B codes are very similar to the HTS codes because they consist of 8 to 10-digit numbers, but they only differ by function. It is mostly used for filling out paperwork for exporting products. Sometimes, the exporters can use HTS codes for filling out the exportation form instead of Schedule B codes. 

What is the difference between HS and HTS codes, as well as Schedule B codes, for international trade? 

After understanding the explanation of HS, HTS codes, and Schedule B codes above, we can understand that the codes are quite similar to each other, but they have different functions and sometimes make us perplexed. In order to know more about what is the difference between HS and HTS codes, as well as Schedule B codes, this is a side-by-side comparison table to grasp of what is the difference between HS and HTS codes, as well as Schedule B codes based on their functions, purpose, and digit numbers. 

Code	Purpose	Issued by	Functions	Digit numbers
HS code	International trade and statistical trade	World Customs Organization (WCO)	Use worldwide	6-digit code numbers
HTS codes	Tariff rates and national statistics in the United States	United States International Trade Commission (ITC)	Identify the tariff rates for imported products in the United States	8 to 10-digit code numbers (vary based on the country)
Schedule B codes	Exported products from the United States’ territory to other countries	United States Census Bureau	Monitor exported products from the United States	8 to 10-digit code numbers

What are the consequences if there is a mistake in identifying the HS code for imported products? 

By understanding what is the difference between HS and HTS codes, we can see that HS and HTS codes play a crucial role in international trade. These two codes become compulsory for importing products from other countries to the United States and any country around the world. If there is a mistake in identifying the products based on the patent of HS codes, it would lead to many problems, and there are serious consequences.

The most likely consequence of incorrect HS or HTS codes is a shipment delay, and the customs officer will seize the products and not allow them to enter the country. The other consequences are fines and penalties based on how severe the mistaken HS codes are. This case will make the exporters or importers bear the risk of financial loss, and it will degrade the reputation of the parties. 

Due to these reasons, all of the parties in international trade should pay attention in order to identify the products that need to be exported and the HS code in the recipient country. Please double-check the products and the materials for making the products, and give a detailed description. However, this process of identifying the products is not easy, and it is very complex. It needs meticulous identification and reidentify to ensure that it would not violate the customs regulations in the destination country. 

Tips on identifying the HS or HTS codes

Due to many consequences of incorrect HS or HTS codes, including shipping delay, fines, or even the seizure of the goods, the exporter and importers should identify the HS code and product thoroughly. Therefore, the exporters should be aware that the identification of HS or HTS codes is tricky and difficult. There are some tips you can follow in order to identify the HS or HTS codes based on the recipient country, as follows. 

1. Write a clear export product description 

Before exporting the product, you need to know the materials and the product that you want to export. Make sure that you write the product description clearly from the materials of the products, functions, packaging, and all of the additional features within the products. 

2. Find the keyword of the products’ HS code

After writing the clear product description, you need to search the keyword on the government or international trade official website. You can also use the HS code finder tool, such as HS Code Match, to find the right HS or HTS codes. 

3. Pay attention to the HS code structure

Understanding the HS code structure is important to know the category of the product that you need to export. The HS code structure will help you navigate the right code for your products. This is a step to alleviate the mistake of recognizing your products. 

4. Using General Rules of Interpretation (GRIs)

The identification process of a product can be done by using the General Rules for Interpretation (GRIs). This concept will allow you to prioritize the specific descriptions and classify the combination or incomplete products. 

5. Double-check for similar products

Please look and try to find the reference from the other exporters who have experience in exporting similar products, and identify the HS code of the products in order to avoid potential mistakes. 

6. Ensuring the HS codes are sent to the customs broker

Ensuring the HS codes are tricky. You can hire a customs broker to help you with the identification and ensure that your products will pass the customs checking process in the recipient country without problem. 

How to find HS and HTS codes using HS Code Match

Finding the right HS code needs a thorough process and is complicated. To solve these problems, HS Code Match provides the answer for you by developing a tool for searching the HS code, namely, the HS Code Search, which you can use freely. Here is the step-by-step instruction to find the HS code using HS Code Match. 

• Step 1: Open the HS Code Match by tapping hscodematch.com on your browser. Then, enter the product’s name along with the country of origin and the recipient country on the HS Code Match website. 

• Step 2: After clicking the search button, you will find the list of HS codes based on the specific products on the HS Code Match page. You can also see the tariff rates for the country that you are looking for based on the best preference. 

• Step 3: You can choose one of the results and see the detailed description of the HS code that you are looking for. 

• Step 4: You can use the AI Assistant  Chatbot to help you find the details or specific part of the HS code or regulations for the products and the countries that you are looking for. 

Conclusion

HS codes and HTS codes are quite similar and related to each other. However, by grasping what is the difference between HS and HTS codes, we know that these two codes are important for the export and import process, particularly for classifying the imported products. HTS codes are basically the additional codes based on the HS codes which acknowledged internationally for cross-border trade. HS or HTS codes should not be neglected because it has a function to classify the tariff rates, taxes, quotas, and other regulations in the recipient country. The inclusion of HS or HTS codes will give you a chance to eliminate the trade barrier based on the Free Trade Agreements (FTAs). 

Frequently Asked Questions

1. Why should we know what the difference is between HS and HTS codes for imported goods?

We should know about what is the difference between HS and HTS codes because it is an essential thing, especially for people who are involved in international trade. By understanding the difference, we can identify the product based on the HS and HST codes, which minimizes the potential loss due to the failure to identify the codes. 

2. What is the difference between HS and HTS codes for imported goods? 

In short, what is the difference between HS and HTS codes is pretty simple because they basically have the same function. HS code is simply the basic standardization code of products that is recognized internationally. Meanwhile, the HTS codes are the codes developed by the United States to identify goods from other countries. HTS codes are the additional or detailed codes from the HS code. 

3. What is the difference between HS and HTS codes, as well as Schedule B codes, for cross-border trade? 

The difference between HS or HTS codes, as well as Schedule B codes, is the function. The HTS codes, which are the additional codes from the HS code, aim to identify the imported products from other countries to the United States. Meanwhile, Schedule B codes are solely for exporting all of the products from the United States to other countries, and these codes are only applied for statistical purposes. 

4. How important the identifying HS or HTS codes? 

Understanding what is the difference between HS and HTS codes is useful to know how important the HS or HTS codes are. These codes identify the goods from other countries, which means the exporter or importer should pay attention to these codes. If not, the customs officer cannot identify the products or goods, and they cannot identify the tariff rates, taxes, and other customs regulations. 

5. What is the consequence of incorrect HS codes for imported goods? 

Since we know what is the difference between HS and HTS codes, and the importance of HS codes, we should never neglect the HS codes on products. There are serious consequences if you do not write the correct HS codes, including shipping delay, seizure of goods, fines, etc. All of this will impact your business cycle because of the financial costs. 

6. How to find the HS code easily? 

Finding HS codes is not difficult these days. We can find the HS code using HS Code Match. This website allows you to find the right HS or HTS codes easily for free because it is equipped with advanced tools. If you want to get more insights regarding the latest government regulations, you can use the Customs Insights Search Tool.