Gamer World

Searching for HTS codes

The United States imports tens of thousands of electronic goods every year. Think of the number of Sony Playstations that enter U.S. Customs every month. Each of these units must be assessed a tariff and a duty before it can be moved into a warehouse and appear at a local retailer for sale. Tariffs and duties are listed in the Harmonized Tariff Schedule of the United States with 22 different sections and over 90 chapters. A Sony Playstation, for example, may fall under section 16 and will be identified with a single HTS code. The reason for “harmony” of tariff codes is that every country and manufacturer within that country identifies its products differently. Developed countries each have a customs department with a unique set of HTS codes that are required before goods can leave their country. When a product arrives in the U.S. from another country, there is a good chance that it will not match the U.S. customs code. To resolve this issue and to bring all the codes from some 200 trading nations into harmony, the harmonized tariff codes were developed. Because tariffs and duties are different for each nation and each product, it’s very important to have the correct HTS code. An incorrect HTS code could result in a higher duty and tariff. Also, fines can often be applied to products that are mislabeled, especially when negligence is an issue. Countries like the U.S. are especially concerned about fraud and the potential threat imported goods may be to U.S. citizens and property. Searching HTS codes can be very tedious. In order to find a code, you can open a relevant section and chapter of the harmonized tariff code and then identify a product that meets the description. However, using this approach is prone to errors. Tools exist to do a reverse HTS code search. These tools make it possible to search by product description, keying on particular words. A large database is accessed of all relevant sections and chapter descriptions, and the search returns the accurate sections and headings for the product. This is very precise, and its efficiency can save a great amount of labor costs.
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