What Is HTS and Why Should You Care?
The Harmonized Tariff Schedule (HTS) is the US customs classification system with 22,000+ codes. Which code your product falls under determines how much duty you pay.
Get it wrong and: At best, you owe back duties plus penalties. At worst, CBP seizes your shipment and revokes your importer privileges. This is not something to take lightly.
HTS Code Hierarchy
A 10-digit HTS code looks like this: 7324.10.00.00
- First 2 digits (73) = Chapter: Iron or steel articles
- First 4 digits (7324) = Heading: Sanitary ware of iron or steel
- First 6 digits (7324.10) = Subheading: Stainless steel sinks
- Last 4 digits = US statistical suffixes
The 6-digit subheading is the sweet spot. It's internationally harmonized and the practical level for duty calculation. CVDar's AI classification targets 6-digit codes with 86.5% top-3 accuracy.
Three Ways to Classify — Fast to Accurate
Fastest: AI Classification Type a product description (plain English works), get top-3 candidate codes with confidence scores in seconds. Great for quick estimates and initial screening. That's exactly what CVDar does.
Middle Ground: Manual Lookup If you know the general category, browse the HTS chapter directory. Importing steel? Start with Chapter 73. Slower but reliable.
Most Accurate: CBP Rulings CBP has a ruling search tool where you can look up official classification determinations for similar products. This is the "answer key." If AI and manual lookup disagree, go with the ruling.
Common Classification Mistakes
Mistake 1: Classifying by use instead of material "Outdoor furniture" isn't automatically Chapter 94. If it's plastic, it goes in Chapter 39. Metal? Could be Chapter 73 or 94 depending on the specific construction.
Mistake 2: Stopping at 4 digits Many importers look up the 4-digit heading and stop. But duty rates often differ at the 6-digit or even 8-digit level. HTS 7324.10 and 7324.90 can have completely different rates.
Mistake 3: Forgetting about add-on duties You found the HTS code, MFN rate is Free, so you think you're done. But Section 301 or AD/CVD may stack on top. CVDar flags all applicable layers.
AI Classification Limitations
86.5% top-3 accuracy means that 1–2 times out of 10, none of the three candidates are correct. New materials, composite products, and borderline classifications are the most error-prone.
The right way to use it: AI gives candidates → you pick the most reasonable one → your customs broker confirms. It's not a replacement for your broker — it's a tool to narrow down the options faster.