Harmonized Tariff Schedule Classification for Imports
HTS stands for Harmonized Tariff Schedule.
In logistics, HTS refers to the classification system used to identify imported goods for customs purposes.
Each product receives an HTS code that determines the applicable duty rate, import taxes, and regulatory requirements.
Customs authorities use HTS codes to calculate duties, apply trade agreements, and decide whether inspections or additional documentation are required.
Importers are legally responsible for using the correct HTS code on customs entries.
Example
Your mining equipment arrives at the Port of Houston from Germany. U.S. Customs must classify the cargo before calculating duties. That classification determines the tariff rate, clearance time, and whether additional inspections apply.
Incorrect HTS codes delay deliveries to construction sites, mines, and oil fields, and disrupt project schedules.
An HTS code is the numerical system used to identify imported goods for U.S. customs purposes. The United States International Trade Commission maintains the Harmonized Tariff Schedule.
Each code defines duty rates, import restrictions, and regulatory obligations. Heavy machinery, breakbulk cargo, and industrial equipment often require detailed review due to mixed mechanical, electrical, and hydraulic functions.
HTS Code Structure Explained
HTS codes contain ten digits arranged in a hierarchy. The first six digits follow the international Harmonized System used worldwide. The final four digits provide U.S.-specific classification detail. Chapter and section notes define how customs treats assemblies, parts, and multi-function machines.
For example, track-mounted excavators fall under Chapter 84. Small digit changes separate bulldozers, loaders, cranes, and drilling equipment. Those differences affect duty rates and compliance requirements for construction, mining, and agricultural machinery.
Your HTS code also triggers regulatory controls. Some machinery requires coordination with agencies such as EPA or DOT. Most importers rely on experienced customs brokerage support to prevent release delays and inspection holds.
Why HTS Accuracy Directly Affects Costs
Duty rates vary sharply between similar classifications. A construction machine valued at $500,000 can incur tens of thousands in extra duties under the wrong code. Repeated imports multiply that exposure across entire projects.
Misclassification also increases enforcement risk. Customs may assess retroactive duties, interest, and penalties.
Repeated errors lead to audits and higher scrutiny, which is especially disruptive for energy and infrastructure timelines.
Trade agreements depend on correct HTS codes. Oil and gas equipment may qualify for reduced duties under USMCA. See how oil and gas machinery shipping relies on compliant documentation to preserve savings.
How to Identify the Correct HTS Code
The U.S. International Trade Commission publishes the official HTS database. Search by product function, not marketing description. This applies to containerized cargo and shipments handled through breakbulk services.
Technical details matter. Power source, operating method, and attachments influence classification. Review comparable cases in our mining equipment shipping guide.
Licensed customs brokers research rulings and precedents. For recurring imports, binding rulings from CBP provide long-term certainty. This approach reduces risk for international heavy equipment shipments.
HTS Codes by Equipment Category
Construction machinery falls under Chapter 84. Excavators, graders, loaders, and cranes use distinct headings. Project planners benefit from early review during construction freight planning.
Oilfield equipment classification depends on function. Drilling rigs and pumps differ from OCTG products classified under Chapter 73. See examples in our drill pipe shipping guide.
Agricultural machinery includes harvesters, irrigation systems, and soil equipment. Duty rates vary by propulsion and use. More details appear in our agricultural machinery shipping overview.
HTS Updates and Regulatory Changes
The HTS updates annually. New technology and trade policy changes affect classification and duty rates. World Customs Organization revisions periodically restructure entire chapters.
Established procedures may become outdated. Review internal databases and broker instructions regularly. Our U.S. import guide tracks compliance implications.
Presidential actions can impose additional duties outside normal cycles. Energy equipment is often affected. Examples appear in Texas oil and gas logistics projects.
Programs Tied to HTS Codes
Duty drawback refunds duties on re-exported goods. Eligibility depends on the HTS code. This applies to exported heavy machinery.
Foreign-Trade Zones defer or reduce duties. Duties apply only upon entry into U.S. commerce. This structure benefits long-term ocean freight projects.
Preference programs like GSP eliminate duties for eligible origins. Correct HTS codes remain mandatory. Review sourcing strategies for Mexico and Canada.
Frequent HTS Classification Errors
Supplier-provided HTS codes often reflect foreign schedules. U.S.-specific digits rarely match. Importers remain legally responsible.
Similar machines are not always identical. Model variations affect classification. Examples arise frequently in drill rig shipments.
Parts and complete machines use different codes. Incorrect treatment triggers corrections and penalties. See guidance in our heavy equipment shipping guide.
HTS Classification Support
Texas International Freight works with licensed customs brokers focused on machinery and industrial cargo. We align engineering data with customs requirements. This approach supports consistent classification across multi-shipment projects.
Our team resolves classification issues before arrival. Clients importing from Canada, Mexico, and global origins reduce delays and duty exposure. Learn more in our heavy equipment import compliance guide.