Shopify Development Trends: HTS Codes for eCommerce Stores

If you’re shipping your goods to customers across the globe, HTS codes are an important part of the international customs clearance process. They can help your customers avoid unexpected duties and taxes.

The HS code is a 10-digit import classification system that’s unique to each country. It helps governments track trade data and make more informed policy decisions.

What is HTS code definition?

HTS codes are a set of 10-digit numbers that are used to classify shipments and calculate duties and taxes for importers. These codes are universal, but the tax implications will vary from jurisdiction to jurisdiction.

HS codes are a global coding system that is created by the World Customs Organization (WCO) to categorize goods. They are divided into a variety of categories, including economic activity and component materials. They are also used to identify and track products that are shipped across international borders.

The first six digits of an HS code are universally recognized and are assigned by the WCO to each product. As you increase the number of digits, the classification gets more detailed and specific.

This is why it is important for eCommerce store owners to ensure that they use the correct HS code when importing products into the United States. Failure to do so can lead to delays, heightened inspections, and fees. In addition, improper HS codes can cause anti-dumping orders and other issues that can affect your business’s bottom line.

However, if you’re not sure which HS code to use on your imports or whether to add an HTS code to your products, you may need to consult with a licensed customs broker who is familiar with the ins and outs of international trade. These experts can walk you through the entire customs process and ensure that you have accurate information to rely on.

For instance, if you’re selling textiles or apparel sets, it’s crucial to provide a specific HTS code so that the appropriate duties can be assessed when your product enters the US. This is because there are differences in how these codes are applied between countries, which can have a significant impact on your business’s bottom line.

The last two digits of an HTS code are used to define specific subheadings and sub-categories that apply to the particular type of product being imported. The subheadings and sub-categories can be found in the US Harmonized Tariff Schedule, published by the US International Trade Commission.

The HS Code system has 99 chapters that come into 22 sections. Toys and sports equipment are listed in Chapter 95, while works of art are in Chapter 97.

What is HTS code terminology?

HS codes are the key to exporting your products successfully and avoiding the most common international shipping problems. They’re also a vital component of your global supply chain and eCommerce store compliance strategies.

The HS Code is a six-digit classification system that governs international trade. It’s used to categorize products, and it’s assigned by the World Customs Organization (WCO).

This system has been in place for over 40 years and is a key factor in facilitating the cross-border trading process. It helps customs authorities understand what a particular product is, so they can charge the right taxes and duties to your online store’s customers in foreign countries.

It’s a critical tool for ensuring your eCommerce store’s international shipping and logistics processes run smoothly, reducing costs and time spent on international compliance. However, it can be difficult to navigate the complexities of international tax compliance and HS code classification without the right tools and resources.

As a result, many eCommerce retailers struggle with the time-consuming task of manually looking up the correct HTS codes for their products. Automated HS code classification solutions can help simplify this process and ensure your products are classified correctly, which can reduce your shipping costs and improve your business’s efficiency.

Using the right HS code can save your online store from unwanted shipping and customs issues, including unplanned tax charges, delays in delivery, or even customs rejection. It can also protect you from losing valuable customer loyalty because your products aren’t delivered to your buyers when they’re promised.

Additionally, knowing the proper HS code for your goods can make it easier to determine whether you’re eligible for free trade agreements and avoid penalties and audit referrals from customs authorities. These types of issues can affect your eCommerce store’s bottom line and impact your ability to compete in the global marketplace.

If you’re an eCommerce retailer, it’s important to keep up with the latest trends in HS code terminology and classification strategies. This will allow you to be ready for the future of global eCommerce and provide your customers with the best possible experience.

Who is responsible for providing HTS codes?

Whether you are new to selling your products internationally or you are an established eCommerce store, understanding hts codes is crucial to making the international trade process as smooth as possible. Using the right HS code for your goods will help to prevent shipping errors and costs and will ensure that you are compliant with all of the local and federal laws.

An HS code is an internationally unique identifier for products that is made up of six digits. It can be used in over 200 countries around the world and is an important tool for ensuring that your exports are processed properly.

The HS system is used by customs authorities around the world to identify and assess duties and taxes on traded goods. The system also enables the collection of data on trade between various countries and facilitates cross-border sales and distribution of products.

There are a number of ways in which an eCommerce store can determine the correct HTS code for their products, including using an automated solution. This tool can be used to quickly and easily assign a unique HTS code to each product in the store’s inventory, which makes it easier for you to ship your goods to international customers.

Another way to ensure that you are getting the HTS code for your products is by auditing your own product range. This will help to ensure that the HTS code is accurate and that you are not using the wrong sub-headings or classifications. Changes to your ingredients, components or packaging may place your products under a different sub-heading, so it is important that you use the most up-to-date HS code list.

While it can be challenging to find the proper HTS code for each product, this task is essential for international trade. If you are not able to correctly classify your goods, you will face significant delays and fines when they arrive at their destination.

The upcoming changes to the HS code system are going to bring in a lot of challenges for many international eCommerce businesses. As a result, these businesses will need to take steps to update their product data accordingly to avoid losing international sales or receiving heavy fines for not keeping up with the hs code changes.

How do HTS codes work?

HS codes are an important part of the international trade industry. They help customs officials to identify products, track them across borders, and levy duties and taxes based on their value. This is especially important for eCommerce stores since they sell products to customers worldwide.

HMTS codes are similar to HS codes, but they also have additional information that helps customs officials classify goods in order to collect appropriate duties and taxes. They are assigned by the World Customs Organization (WCO) and are used to identify a product's country of origin.

The WCO is a group of customs administrators from around the world that works to create uniformity, harmony, and efficiency in customs regulations. Its goal is to ensure that goods can cross international borders freely, as long as they don't contain any import restrictions.

As a merchant, you have a legal obligation to know your HTS codes and to use them correctly. Misclassified shipments can result in overpayment or underpayment of customs duty and can cause other problems for your business. It can also prevent you from utilizing preferential tariffs and free trade agreements that could have a positive impact on your bottom line.

However, it can be difficult to identify which HS code your product needs, especially for newer, more complex products. If you're not sure, it's best to consult an expert.

One way to find your HTS code is to use a free search tool from the US Census Bureau. The site will ask you to describe your product and then provide several auto-fill suggestions. You can then select more characteristics to narrow down the number that's right for your product.

Once you've found the right HS code for your product, you can add it to your Shopify store. If your product's HS code is a 10-digit number, you'll need to input it manually or have your supplier or freight forwarder input it for you.

You can also find the HS code for your product online by using a free HTS code search tool from the US Customs and Border Protection Agency. These tools are updated regularly and can be a great resource for finding the right HTS code for your products.

Most Shopify store owners focus on their digital marketing alongside their web development. Keeping up with the cutting-edge Shopify Apps in ensuring a frictionless checkout for their online store, with additional tools to fill the Shopping Cart. Online shopping continues to grow year-over-year as the user experience improves with tailored customer service practices. Behind the scenes, are Shopify partners such as TheGenieLab. We are helping business owners and shopkeepers to drive continuous improvements through digital marketing services. Furthermore, they are providing Web Development in Shopify, BigCommerce, and other eCommerce store architectures. If you need a hand in any aspect of eCommerce, feel free to reach out to us at wish@thegenielab.com