If you’re a Canadian ecommerce seller shipping direct-to-consumer into the US, or moving inventory into a US fulfillment center, you’re the exporter and often the importer of record on every one of those shipments. That means the HTS code on your customs paperwork is your responsibility, and getting it wrong is more common (and more costly) than most sellers expect.
This guide walks through what an HTS code is, how it differs from the HS code you may already use for shipments into Canada, how to read and look one up, and the mistakes that trip up Canadian exporters most often.
What Is an HTS Code?
An HTS code short for Harmonized Tariff Schedule code is the 10-digit classification system US Customs and Border Protection (CBP) uses to determine the duty rate on goods entering the United States. Every product crossing into the US needs one, and it directly determines how much you pay in duties.
If you’re a Canadian seller acting as exporter of record on a US-bound shipment whether you’re selling direct-to-consumer or restocking a US fulfillment center you need an HTS code, not a Canadian HS code, on that shipment’s paperwork.
The HTS is maintained by the US International Trade Commission (USITC), and the code is a legal requirement on the commercial invoice or customs entry for any US-bound shipment. It’s also a different system from the HS code Canadian sellers use for goods entering Canada, which we’ll unpack next.
HTS Code vs. HS Code: What’s the Difference?
The confusion between HTS and HS codes trips up more Canadian sellers than almost anything else in cross-border shipping largely because the two systems look nearly identical.
Here’s what’s actually shared and what isn’t: the first 6 digits of any HTS or HS code are internationally standardized by the World Customs Organization (WCO), so they’re identical no matter which country you’re shipping to. The last 4 digits are where the systems diverge the US extends the code to 10 digits under its own HTS, while Canada extends it to 10 digits under the CBSA’s Customs Tariff. Same first 6 digits, different last 4.
| HTS Code (US) | HS Code (Canada) | |
|---|---|---|
| Maintained by | US International Trade Commission (USITC) | Canada Border Services Agency (CBSA) |
| Total digits | 10 | 10 |
| First 6 digits | Internationally standardized (WCO) | Internationally standardized (WCO) |
| Last 4 digits | US-specific | Canada-specific |
| Used for | Goods entering the United States | Goods entering Canada |
Why this matters: a code that’s correct for a shipment entering Canada isn’t automatically correct for the same product entering the US, and vice versa. Each direction needs its own lookup, done separately.
If you’re looking for the CBSA-side code for importing inventory into Canada rather than exporting to the US, see ShippingChimp’s guide to HS codes this page stays focused on the outbound, US-bound lookup.
How to Read a US HTS Code
A full US HTS code has 10 digits, built in layers that narrow down from a broad category to a specific product. Take the example 6302.91.00.20:
- Chapter (first 2 digits) – 63: The broad product category. In this case, textile articles.
- Heading (next 2 digits) – 02: Narrows within the chapter.
- Subheading (next 2 digits) – 91: Completes the internationally standardized 6-digit code (6302.91), narrowing by material composition and product type.
- US statistical suffix (next 2 digits) – 00: US-specific, extending the code to 8 digits.
- Final 2 digits – 20: Completes the 10-digit classification used on the customs entry.
The duty rate shown in the “General” column of the HTS applies to goods from World Trade Organization member countries. Canadian-origin goods often qualify for preferential (reduced or zero) rates under CUSMA/USMCA, provided the product meets the applicable rules of origin worth checking before you assume the General rate applies to your shipment.
How to Look Up Your HTS Code Step by Step
- Write a detailed, accurate product description. Material composition, function, and intended use matter more than the product name HTS classification often hinges on these details.
- Search the USITC Harmonized Tariff Schedule using your product description, or a partial code if you already have one.
- Cross-check with a free HTS code finder tool to get a second opinion, especially for ambiguous products.
- Confirm against the General Rules of Interpretation (GRI) when a product could plausibly fall under more than one heading.
- Check whether Section 301 tariffs or anti-dumping/countervailing duty (ADD/CVD) orders apply these sit on top of the standard HTS duty rate and depend on country of origin.
- Verify with a licensed US customs broker before your first shipment goes out, particularly for high-value, ambiguous, or high-duty-risk products.
This process applies whether you’re doing a one-off HTS code lookup or setting up classification for a recurring HTS code lookup Canada sellers will need on every US-bound shipment going forward.
Why Getting the HTS Code Right Matters for Canadian Exporters
The HTS code you assign determines more than just the duty rate it also determines whether Section 301 duties or ADD/CVD orders apply, and whether other US government agencies (FDA, USDA, and others) have requirements triggered by your product’s classification.
Financial risk: Misclassification can mean overpaying duties on every single US-bound shipment, or underpaying and facing penalties, back duties, and interest if CBP audits your import history.
Operational risk: An incorrect HTS code is a common cause of shipments held at the US border for manual review especially costly for DTC brands that promise fast delivery to US customers.
It’s also worth being clear on who’s accountable. The importer of record which for a Canadian DTC brand selling directly to US customers is often the brand itself carries legal responsibility for classification accuracy, even when a supplier or freight forwarder originally supplied the code.
Common HTS Classification Mistakes
- Reusing a Canadian HS code on a US customs entry without adjusting for the US-specific 10-digit HTS suffix.
- Classifying by material instead of primary function, when the General Rules of Interpretation generally prioritize function.
- Assuming a supplier-provided code is correct without independently verifying it.
- Failing to reclassify after a material or component change even a minor change can shift the correct heading.
- Overlooking preferential tariff treatment available to Canadian-origin goods under CUSMA/USMCA, which can reduce or eliminate duty when origin documentation is in order.
FAQ
Is an HTS code the same as an HS code? They share the same first 6 digits, standardized internationally by the World Customs Organization. Beyond that, they differ: “HTS code” refers specifically to the United States’ 10-digit Harmonized Tariff Schedule, while “HS code” more broadly refers to the international 6-digit standard or a country’s own extension, such as Canada’s 10-digit CBSA Customs Tariff code. A code correct for a Canada-bound shipment isn’t automatically correct for a US-bound one.
Do Canadian sellers need an HTS code? Yes, if you’re the exporter of record on a shipment entering the United States common for Canadian DTC brands selling directly to US customers or restocking a US fulfillment center. The HTS code determines the duty rate CBP applies, and getting it right is your legal responsibility as the importer of record.
How many digits is a US HTS code? A full US HTS code has 10 digits. The first 6 are the internationally standardized HS code, the next 2 form a US-specific 8-digit subheading, and the final 2 are a statistical suffix used by CBP and the Census Bureau.
Where do I find the HTS code for my product? Start with the USITC Harmonized Tariff Schedule online search tool, entering a detailed product description or a partial code if you have one. Cross-check the result with a free HTS code finder tool, then verify against the General Rules of Interpretation or with a licensed US customs broker for higher-value or ambiguous products.
Who is responsible for HTS classification accuracy? The importer of record typically the brand itself for a Canadian company shipping DTC into the US carries legal responsibility for classification accuracy, even if a supplier, freight forwarder, or customs broker provided the code. Independently verifying any code before it goes on a US customs entry is worth the extra step.
What happens if I use the wrong HTS code? An incorrect HTS code can lead to overpaying or underpaying duties, triggering a CBP audit, or having the shipment held at the US border for manual review. Repeated or significant misclassification can result in penalties, back duties, and interest particularly costly for DTC brands running frequent, recurring US-bound shipments.
Can Canadian goods get a lower US tariff rate? Often, yes. Goods that qualify as Canadian-origin under CUSMA/USMCA can receive a preferential duty rate sometimes reduced to zero instead of the standard HTS rate, provided the correct origin documentation is filed with the shipment. Confirming eligibility is worth doing alongside HTS classification, not as an afterthought.
Key Takeaways
- An HTS code is a 10-digit US classification maintained by the USITC separate from Canada’s HS code, even though the first 6 digits match.
- Get the product description right first; classification hinges on material, function, and intended use more than the product name.
- The importer of record (often the brand itself for DTC sellers) carries legal responsibility for classification accuracy.
- Check for CUSMA/USMCA preferential rates before assuming the standard HTS duty rate applies.
- For high-value or ambiguous products, verify with a licensed US customs broker before the first shipment goes out.
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