HS Codes, HTS Codes and Schedule B

The primary difference between HS and HTS codes comes down to the level of specificity in classification they provide. While the difference may not seem major, using the wrong one could have a big impact on your import declarations.

HS and HTS codes

1. HS Codes (Harmonized System Codes)

What It Is: A standardized international system for classifying traded goods, developed by the World Customs Organization (WCO).

• Structure: It consists of 6 digits, divided into three parts:

  • Chapter (2 digits): Broad category (e.g., 22 for beverages)

  • Heading (4 digits): More specific category (e.g., 2204 for wine)

  • Subheading (6 digits): Further detail (e.g., 2204.10 for sparkling wine)

• Purpose: Used globally for tariff classification, customs purposes, and trade statistics.

• Scope: Over 200 countries use HS codes, ensuring consistency in international trade.

  
  

2. HTS Codes (Harmonized Tariff Schedule Codes)

What It Is: A country-specific extension of the HS code system.

• Structure: Starts with the same first 6 digits as the HS code but extends beyond that for greater specificity.

• Length: Typically 10 digits (in the U.S.), with the last 4 digits providing additional national-level detail for tariffs and trade policies.

• Purpose: Determines the applicable import duty rates, trade quotas, and restrictions.

• Scope: Specific to a country or customs union.

  • Example:

    • U.S. uses HTSUS (Harmonized Tariff Schedule of the United States).

    • The EU has its own CN (Combined Nomenclature) based on the HS system.

Feature	HS Codes	HTS Codes
Number of Digits	6 (standardized globally)	8–10 (varies by country)
Purpose	Global classification	Country-specific tariffs & regulations
Level of Detail	General	More detailed for national policies
Used By	Over 200 countries	Individual countries/customs authorities
Example (Wine)	2204.10	2204.10.0020 (U.S. HTS)

A Schedule B number is a 10-digit export classification code used by the United States Census Bureau to track U.S. exports. It is based on the Harmonized System (HS) codes but is specific to U.S. exports rather than imports.

Key Characteristics of Schedule B Numbers

• Purpose:

  • Required for reporting exports in the Automated Export System (AES) when goods exceed $2,500 USD or need an export license.

  • Helps the U.S. government track trade statistics and enforce export regulations.

    
    

• Structure:

  • The first 6 digits are identical to the HS code, aligning with international standards.

  • The last 4 digits add U.S.-specific classification.

    
    

• Managed By:

  • The U.S. Census Bureau maintains and updates the Schedule B list.

    
    

Type	Code Example	Description	Use Case
HS Code	2204.10	Sparkling wine	Used globally for trade classification.
HTS Code (Import)	2204.10.0020	Sparkling wine, in containers <= 2L	Used for U.S. imports (tariff rates).
Schedule B (Export)	2204.10.0040	Sparkling wine, over 2L	Used for U.S. export reporting.

Difference from HTS Codes

• HTS Codes are for U.S. imports (tariffs and duties).

• Schedule B Numbers are for U.S. exports (tracking and reporting).

In short, if you're importing into the U.S., you use HTS codes. If you're exporting from the U.S., you use Schedule B numbers. Both systems share the same foundation but serve different regulatory purposes.

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