What is an HS and HTS Code?

Beginning September 1, 2025, USPS will require all international shipments to include at least 6-digit HS Codes on customs declarations for parcels containing commercial goods. Missing HS Codes won’t stop label creation, but it can cause delays or rejections at customs in the destination country.

If you ship internationally with USPS, this update may affect your compliance process. Below, we explain what HS and HTS codes are and how ShipSaving makes it easier to stay compliant and ship with confidence.

What is an HS Code?

In international trade, standardized classification systems are essential for accurately identifying and tracking products. One of the most widely used systems is the Harmonized System (HS), maintained by the World Customs Organization (WCO). The HS code is a standardized six-digit method for classifying goods traded worldwide.

Many countries build on this foundation with their own Harmonized Tariff Schedule (HTS) codes, extending the classification (to 8 or 10 digits) to determine tariffs, duties, and trade policies.

The HS system contains over 5,000 headings and subheadings that classify goods based on their nature, composition, and intended use. Its structure is hierarchical:

• First 2 digits (Chapter): Broad product categories (e.g., Chapter 84 = Machinery; Chapter 85 = Electrical equipment).
• Next 2 digits (Heading): Narrower classification.
• Final 2 digits (Subheading): Most detailed global level.

For example, HS 8414 refers to “air or vacuum pumps, compressors, and fans,” while 8414.90 specifies “parts” of those machines.

‍

What Happens If You Don’t Include HS Codes?

When a shipment lacks an HS Code, it can cause serious problems at multiple stages of the shipping process. Customs authorities in the destination country could delay, return, or even seize the shipment. This often results in additional fees, frustrated customers, and potential penalties for non-compliance. In short, failing to include HS Codes can disrupt your shipping flow and increase costs.

What is an HTS Code?

The Harmonized Tariff Schedule (HTS) is a country-specific extension of the HS system, used primarily for imports. It combines the six-digit HS code with additional digits to determine tariffs, duties, and regulatory requirements.

• In the United States, the HTS code is 10 digits.
• In the European Union, it is typically 8 digits.

HTS codes allow customs authorities to calculate duties and taxes, identify trade restrictions, and apply import regulations such as quotas or permits.

Additional Codes: GHS and Schedule B codes

In the United States, exporters use Schedule B codes, which are 10-digit classification numbers based on the HS system and maintained by the U.S. Census Bureau. These codes are used mainly for export reporting and trade statistics. If a shipment exceeds $2,500 in value per Schedule B code, the details must be filed through the Automated Export System (AES). An export license is only required if the product is controlled or restricted, not simply because it exceeds the value threshold.

For hazardous chemicals, the Globally Harmonized System (GHS) provides an international framework for consistent classification and labeling. It ensures chemical products are safely identified, packaged, and communicated when shipped internationally.

Item Classification in the Harmonized System

Each product has its own HS code, but the classification goes beyond a simple category. For example:

• 0701 = Fresh or chilled potatoes
• 0710.10 = Frozen potatoes

The first four digits identify the core product (potatoes), while the last two describe the condition (fresh vs frozen). This principle applies to all goods: the more digits, the more specific the classification.

Why HS Codes Matter?

Using HS codes correctly is critical for international shippers:

• Standardized trade: HS codes create a common language for product classification, making cross-border business smoother and more predictable.
• Faster customs clearance: Proper codes help customs authorities apply duties, restrictions, and regulations efficiently, reducing delays.
• Regulatory compliance: Many products are subject to health, safety, or environmental rules. HS codes ensure shipments meet these requirements.
• Accurate trade data: Governments and organizations use HS codes to track imports and exports, supporting economic research and policymaking
• Efficient revenue collection: Customs duties and taxes are assessed based on correct classification, ensuring fair and consistent revenue collection.

Adding HS Codes in ShipSaving

Once you know your product’s HS Code, entering it in ShipSaving is simple:

The following figure shows how to enter your HS Code at the ShipSaving Starter and Pro version:

‍

The following figure shows how to enter your HS Code at the ShipSaving Legacy version:

‍

Final Words

Whether exporting or importing, correctly applying HS, HTS, or Schedule B codes is mandatory. Incorrect or missing codes can cause shipment delays, customs fines, or compliance problems.

ShipSaving helps simplify this process by allowing you to add HS codes seamlessly within the platform, ensuring compliance with USPS’s new requirements while also helping you save money on shipping.