Tariffs & HTS Classification
The system that governs how every imported product is identified and taxed.
What is this topic?
The Harmonized Tariff Schedule (HTS) is the U.S. implementation of the global Harmonized System. It assigns every imported product a 10-digit code that drives duty rates, trade-agreement eligibility, quota status, and partner-government-agency requirements.
Why it matters
- • Misclassification creates duty underpayments and CBP penalties
- • The right code can unlock substantial FTA savings (USMCA, GSP, etc.)
- • Section 301/232 surcharges hinge on classification and origin
- • Auditable classification rationale is required by reasonable-care standards
Key concepts
General Rules of Interpretation (GRI)
Six rules that govern how the HTS is read — GRI 1 (terms of headings), GRI 3 (sets), and GRI 6 (subheadings) are most cited.
Sections, Chapters, Headings
HTS is hierarchical: 22 Sections → 99 Chapters → 4-digit Headings → 6-digit international subheadings → 10-digit U.S. statistical codes.
Duty stacking
Final rate is MFN base + Section 301/232 + AD/CVD + any specific or compound duties.
Country of origin
Substantial transformation determines origin, which controls FTA eligibility and 301 exposure.
Common compliance risks
- • Using the supplier-provided HTS without independent verification
- • Ignoring GRI 3 logic for kits, sets, and composite goods
- • Missing AD/CVD orders that apply to specific subheadings
- • Assuming FTA preference without certificate-of-origin support
How BITE supports this
- • AI-assisted classification suggestions with GRI rationale
- • Real-time duty stack including 301/232 and AD/CVD
- • Linked CBP rulings (CROSS) for precedent
- • Bulk classification and persistent product database
Related Workflow: Import Workflow
See how classification, screening, tariff review, and post-entry compliance work together across the import lifecycle.
Related BITE Capabilities
Classify
Get HTS recommendations and classification rationale.
Tariff Check
Calculate duty rates, tariff stacks, trade remedies, and landed-cost exposure.
Product Database
Maintain centralized product records, classifications, countries of origin, and tariff attributes.
Tariff Analyzer
Analyze large product portfolios for tariff exposure and duty impact.
Dynamic Compliance Monitoring
Monitor tariff changes, trade remedies, classification updates, and regulatory developments that affect product compliance.