No, the HTS code is not the same as the HS code. The HS code is a global six-digit system for classifying goods, while the HTS code is a country-specific extension of the HS code with up to ten-digits, used for import tariffs and statistics.
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Shipping from Japan? What’s the difference between HTS codes and HS codes?
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Imagine this: You’ve sent out your shipment from Japan only for it to be held at the destination’s customs. Frustration mounts as you grapple with confusing requests about HS code and HTS code discrepancies, and your customers are becoming impatient. You're not alone. Many Japanese businesses venturing into the global marketplace find themselves overwhelmed and confused by classification codes.
Accurate product classification is the bedrock of smooth overseas shipping. Incorrect codes can lead to costly delays, penalties, and even the seizure of your goods. That’s why it’s important to know the meaning of and the difference between HS and HTS codes, so you can import or export smoothly.
What is a HS Code?
The foundation of international trade classification is the Harmonized System (HS) code. It is a universal language for identifying and categorizing traded products between nations. Developed and maintained by the World Customs Organization (WCO), this standardized system ensures that customs authorities worldwide and businesses speak the same language when it comes to goods. This standardization also contributes to the calculation of international shipping rates as it helps determine applicable duties and taxes.
The HS code is a six-digit numerical system, organized into sections, chapters, and headings. This hierarchical structure allows for precise categorization of everything from live animals to machinery. Because it’s globally recognized, the HS code forms the basis for most countries' tariff systems and is vital for trade statistics and negotiations.
Here’s an example of a HS code:
- Chapter: The first two digits (e.g., 09 for Coffee, Tea, Maté and Spices).
- Heading: The next two digits, specifying the category within the chapter (e.g., 0902 for Tea, whether or not flavoured).
- Subheading: The final two digits, providing a more specific classification (e.g., 0902.10 for Green tea (not fermented)).
What is a HTS Code?
While the HS code provides the global framework for trade, individual countries often build upon this system to meet their specific import tariff and statistical needs. This is where the Harmonized Tariff Schedule (HTS) code comes into play.
Say you’re looking to ship out to the United States. In the United States, for example, the Harmonized Tariff Schedule of the United States (HTS) expands the basic six-digit HS code with up to four additional digits. These extra digits provide a more detailed classification of goods for import duty assessment and statistical purposes within the U.S. So, while the initial six digits align with the international HS code, the subsequent digits are specific to the U.S.
Here’s an example of a U.S. HTS code building upon our green tea example:
- The HS code for green tea (not fermented) is 0902.10.
- In the U.S. HTS, the expanded code is 0902.10.10 for "Green tea, not fermented, in packages exceeding 3 kg." The ".10" is the U.S.-specific additional digits.
It's important to note that the U.S. isn't alone in this practice. Many other countries also add their own digits to the base HS code to create their national tariff schedules. This means that while the core six digits might be the same, the complete code used for import/export declarations will vary from country to country.
HTS Codes vs. HS Codes: Key differences at a glance
So what’s the difference between a HS code vs HTS code? Here’s a quick comparison at a glance:
Feature | HS Code | HTS Code |
Used by | Global | Country-specific |
Length | Typically 6 digits | More than 6 digits and up to 10 digits (varies by country) |
Purpose | International classification and trade statistics | National import tariffs and statistics |
Usage | Used worldwide for export declarations | Used for import declarations within a specific country |
Using the wrong HS or HTS code can have significant implications on your shipment. Incorrect codes can lead to miscalculation of duties, customs delays, penalties for non-compliance, and even rejection of your shipment.
So, how do you find the correct codes? Generally, you'll start by identifying the correct six-digit HS code for your goods. Then, for the destination country, you'll need to consult their specific tariff schedule to find the complete code required for import.
How DHL Express simplifies code classification
Finding the right HS code or HTS code for shipping doesn’t have to be difficult. DHL Express provides customs guidance via experts with in-depth knowledge of local regulations to help you ensure your shipments comply with all requirements, and to help you calculate accurate international shipping rates.
You can also use free online tools like DHL Express MyGTS, which allows you to find relevant HS/HTS codes by specifying your exporting/importing country and entering a product description.
Frequently asked questions about HS codes vs HTS codes
The HS code is the foundation for many tariff codes. A tariff code is a broader term that often refers to a country's complete schedule of duties and taxes applied to imported goods. This tariff code usually incorporates and extends the base HS code.
The HS code refers to the Harmonized System used globally. HSN code typically refers to the Harmonized System of Nomenclature, which is primarily used in India for classifying goods under their Goods and Services Tax (GST) system. While related to the international HS code, it has its own specific structure and application within India.
Partner with DHL Express for seamless trade in and out of Japan
Understanding the difference between HS and HTS code is important for businesses in Japan engaged in overseas shipping. While the HS code provides a global framework for classifying codes, knowing the specific HTS code for your destination will help you calculate accurate international shipping rates.
DHL Express is committed to simplifying the complexities of customs clearance. Our expert knowledge, comprehensive services, and user-friendly tools are designed to help you accurately classify your goods, avoid costly errors, and ensure your shipments to and from Japan move smoothly and efficiently.
Ready to experience expert customs clearance support? Open a business account with DHL Express today and let us be your trusted partner in global trade.
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