What is the HTS system?

• A. Harmonized Tariff Schedule; classifies goods for duties.
• B. High Tariff Scale; sets maximum duties.
• C. Health and Trade System; monitors health compliance.
• D. Hazardous Transport Schedule; safety guidelines.

Answer: (A)

HTS stands for Harmonized Tariff Schedule. It’s the classification framework used to assign tariff codes to imported goods so duties, import controls, and trade statistics can be determined. This system aligns with the internationally recognized Harmonized System (HS) codes developed by the World Customs Organization. In the United States, the HTS uses a base six-digit HS code, with additional digits added to specify exact duty rates and eligibility for programs. This classification lets CBP accurately calculate duties and enforce import requirements. It isn’t a high tariff scale, a health-and-trade system, or a hazardous-transport schedule, which is why those names don’t fit the purpose of HTS.