HTS Codes and HS Codes

Knowledge regarding a list of important acronyms is helpful for anyone participating in the global trade arena. Having a good working vocabulary of these terms can make it much easier to keep up with international trade issues.   Some of these acronyms are more complicated than others, but rather than the longest being the most difficult to understand, it is often the acronyms that are most closely related to one another that cause the most confusion, regardless of their length. Take HS and HTS codes, for example. Both are intrinsically related, and a single letter apart, but HTS codes and HS codes are not one in the same.

HS stands for Harmonized System. This acronym relates to a global system of numeric codes used to classify goods being shipped overseas. Each digit in the code is used in conjunction with the others in order to achieve an unambiguous classification regarding the contents of a shipment of goods. Specifically, what this acronym stands for is the 6 digit international code for classifying goods being shipped. Almost any goods can be classified through this system.

HTS stands for Harmonized Tariff Schedule. An HTS code is quite similar to an HS code, only it is specific to the United States of America, and includes 10 digits. An HS code may resemble an HTS code in its form and function; however an HTS code is not interchangeable with an HS code because the four digit suffix that exists in an HTS code does not exist in an HS code. Knowing this key difference makes determining whether a code is an HTS or HS code relatively simple—just count the digits.

If there are 10 digits, you have an HTS code, which relates to the United States specifically. Any less digits and it’s no longer an HTS code, and could therefore be relating to any number of other countries besides the US. Why is this important? HTS and HS classification is an integral component of the modern global supply chain. All goods entering US ports are classified in this manner, and as JSmith explained in her “60 Degree Harmonized Tariff Schedule Education” article, importers are responsible for correctly classifying their goods well before they reach US soil.

Keeping up with contemporary terms and acronyms relating to global trade is integral to maintaining a higher level of customs compliance, because it’s next to impossible to comply with the unknown. Keep checking back to TRG Peak for more detailed analyses and explanations of international trade jargon, and stay ahead by staying informed.