Harmonized Tariff Schedule: Codes, Duty Rates, and Penalties

The Harmonized Tariff Schedule of the United States is the legal document that sets the duty rate on almost every product imported into the country. Published by the U.S. International Trade Commission, it assigns each type of merchandise a 10-digit classification code and the tariff rate that goes with it. The first six digits match the international Harmonized System used by most trading partners; the remaining digits are U.S.-specific and reflect domestic trade policy, additional duties imposed by executive action, and statistical tracking requirements that appear on every entry filed with U.S. Customs and Border Protection.¹

How the 10-Digit Code Is Built

Every imported product is identified by a 10-digit number, but not every digit carries the same legal weight. The legal text of the schedule ends at the 8-digit level, which is where duty rates are actually assigned. The last two digits are a statistical suffix used to track trade volumes; they are administratively adopted rather than enacted into law, but the full 10-digit number still has to appear on every entry.¹

The digits work in layers. Digits one and two identify the chapter, grouping merchandise into broad categories like live animals, chemicals, or machinery. Digits three and four form the heading within the chapter. Together the first six digits are the international subheading and match what customs authorities in other Harmonized System countries use.² Digits seven and eight are the U.S.-specific subheading where the tariff rate sits, and digits nine and ten are the statistical suffix.

One point catches new importers off guard: the schedule is not a list of products. It is a system of categories, and it has to classify things that did not exist when the categories were drafted.¹ That is why classification requires interpretation, not just a lookup.

How to Classify a Product

Classification follows six General Rules of Interpretation (GRIs), applied in strict order. You start with GRI 1 and only move on if the previous rule does not resolve the question. These rules have the force of law, and every disputed classification eventually turns on how they were applied.

GRI 1: Start With the Headings and Notes

Classification begins with the terms of the headings and the relevant section or chapter notes.³ The titles of sections, chapters, and sub-chapters exist for convenience and carry no legal weight. The notes do. A chapter note saying “this heading does not cover articles of leather” controls, no matter how naturally a leather product otherwise fits the heading text. Most goods are classified entirely at this step.

GRI 2: Incomplete Articles and Mixed Materials

GRI 2 does two things. It lets you classify an unfinished or incomplete article as if it were complete, so long as it already has the essential character of the finished product. And it extends a heading written for goods of one material to cover goods of that material mixed with others. That second part is what forces the next rule, because mixing materials often puts a product in more than one plausible heading.

GRI 3: Choosing Between Competing Headings

GRI 3 resolves conflicts in three steps. Pick the more specific heading over a more general one. If two headings are equally specific, classify by the material or component that gives the product its essential character. If that still does not break the tie, GRI 3(c) sends you to whichever candidate heading falls last in numerical order.⁴ 5 The last-in-order tiebreaker feels arbitrary, and it is; the system needs a definitive answer even when no heading is clearly better.

GRI 6: Repeat at the Subheading Level

Once the correct heading is fixed, GRI 6 tells you to run the same logic within it to select the right subheading, comparing only subheadings at the same level.⁵ GRIs 4 and 5 handle rarer situations involving genuinely unclassifiable goods and specialized packaging, and most importers never need to reach them.

Which Duty Rate Column Applies

Once you have the right 8-digit subheading, the schedule shows duty rates in three columns. Which column applies depends entirely on where the goods were produced.⁶

Column 1 General is the standard rate for countries with normal trade relations status, which covers nearly every country. These rates reflect concessions negotiated through the World Trade Organization and are what most importers actually pay.⁶

Column 1 Special lists reduced or duty-free rates available under specific trade agreements and preference programs. Letter codes next to each rate identify the program: “S” for the United States-Mexico-Canada Agreement, “AU” for the U.S.-Australia Free Trade Agreement, “KR” for the U.S.-Korea agreement, and “A” or “A+” for the Generalized System of Preferences, among others.⁷ These lower rates are not automatic. You have to document that the goods meet the origin rules of the specific agreement, and CBP can audit that claim after the fact.

Column 2 rates apply to countries without normal trade relations. As of early 2026, that list is Cuba, North Korea, Russia, and Belarus.⁸ Column 2 rates often date back decades and can run several times higher than Column 1 General.

Rates themselves come in three forms. Ad valorem rates are a percentage of the appraised value (“5.3% ad val.”). Specific rates are a fixed dollar amount tied to quantity, weight, or volume (“4.8 cents per kilogram”). Compound rates combine both. The type matters because it changes how your total cost scales with the size of the shipment.

Fees on Top of the Duty

The tariff rate is not the only cost at the border. Two fees apply to most commercial imports and are easy to miss when estimating landed cost.

The Merchandise Processing Fee is an ad valorem charge of 0.3464% on most formal entries. For fiscal year 2026, the minimum is $33.58 and the maximum is $651.50 per entry, adjusted for inflation each October.⁹

The Harbor Maintenance Fee applies to cargo arriving by water at 0.125% of cargo value.¹⁰ Air cargo is exempt. On high-value ocean shipments the HMF adds up quickly.

Additional Duties Under Chapter 99

Many products face extra duties layered on through executive action or trade remedy laws. These are codified in Chapter 99, which temporarily amends the rates in Chapters 1 through 98. Chapter 99 duties stack on top of the regular tariff rate rather than replacing it.

Section 301 Tariffs on Chinese Goods

Under Section 301 of the Trade Act of 1974, additional duties apply to a wide range of products originating in China. The USITC publishes a reference document mapping affected 8-digit subheadings to the Chapter 99 headings that define the additional rate.¹¹ The duties have been imposed in tranches since 2018, with additional categories phased in through January 2026, and the rates range from 7.5% to 100% on top of the base Column 1 General rate. To check a specific product, search the USITC’s China Tariffs list for its 8-digit subheading.

Section 232 Tariffs on Metals

Section 232 of the Trade Expansion Act of 1962 authorizes tariffs on imports that threaten national security. As of June 2025, the additional rate on steel and aluminum articles was increased from 25% to 50% ad valorem.¹² In April 2026, a presidential proclamation extended coverage to copper and set tiered rates: 50% for articles made entirely or almost entirely of the covered metals, 25% for derivative articles substantially made of those metals, and 15% for certain metal-intensive industrial and electrical grid equipment through 2027.¹³ Products containing 15% or less of the covered metals are exempt from Section 232 duties.

Antidumping and Countervailing Duties

When a foreign manufacturer sells goods in the U.S. below fair market value, or benefits from government subsidies, the Commerce Department can impose antidumping (AD) or countervailing duties (CVD). These are product- and country-specific and can change with each annual review. The International Trade Administration maintains a searchable database of active cases by HTS number, country, or product description.¹⁴ Missing an AD/CVD order is one of the more expensive mistakes an importer can make; the rates are often steep and retroactive assessments are common.

Penalties for Getting the Code Wrong

Misclassification is not just an administrative problem. Federal law imposes civil penalties that scale with culpability, and CBP has five years from the date of the violation to bring an action.¹⁵ Under 19 U.S.C. § 1592, the tiers are:

Negligence: up to two times the unpaid duties, or up to 20% of the dutiable value if the error did not affect the duty assessment.
Gross negligence: up to four times the unpaid duties, or up to 40% of the dutiable value if duties were unaffected.
Fraud: up to the full domestic value of the merchandise.¹⁶

For fraud, the five-year clock runs from the date the fraud is discovered, not the date the entry was filed. CBP can also obtain warrants to search for and seize merchandise on which duties have not been paid.¹⁷

There is a strong incentive to come forward before CBP finds the problem. A prior disclosure, made before a formal investigation begins, caps the penalty for negligence or gross negligence at the interest on the unpaid duties rather than a multiple of them. Even for fraud, prior disclosure limits the penalty to 100% of the unpaid duties, provided you tender payment within 30 days of CBP’s calculation.¹⁸ The difference between disclosing and getting caught can be the difference between paying interest and paying four times the shortfall.

Where to Look It Up and Lock It In

The primary tool is the searchable database maintained by the U.S. International Trade Commission, which reflects the current schedule, including recent legislative changes and executive orders.¹⁹ You can search by keyword or by known digits to pull up chapters, headings, and the three rate columns. Start every classification here.

When a product does not fit neatly into a heading, the Customs Rulings Online Search System (CROSS) is the second stop. It contains thousands of formal classification rulings issued by CBP under 19 CFR Part 177, each explaining how the agency classified a specific product and why.²⁰ Searching for products similar to yours shows how CBP is likely to view your merchandise.

When you need certainty before importing, request a binding classification ruling directly from CBP. The ruling tells you the correct code and rate, and CBP is legally bound by it for future shipments of the same product. Requests must concern prospective shipments and can be submitted electronically through the eRulings portal, limited to five items of the same class per request.²¹ Each request must include a full description of the article, its chief use in the United States, the composition of its materials by weight and volume, photographs or samples when possible, and a statement of the classification you believe applies along with your reasoning.²² CBP generally issues rulings within 30 calendar days, though those requiring laboratory analysis or interagency consultation take longer. For high-value or recurring imports, the time spent obtaining a binding ruling is almost always worth it: it removes the classification risk that otherwise follows every shipment.

1
United States International Trade Commission. Frequently Asked Questions (FAQs) about Tariff Classification, the Harmonized Tariff Schedule, Importing, and Exporting
2
International Trade Administration. Harmonized System (HS) Codes
3
United States International Trade Commission. Harmonized Tariff Schedule – General Rules of Interpretation
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United States International Trade Commission. Harmonized Tariff Schedule – General Rules of Interpretation
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World Customs Organization. General Rules for the Interpretation of the Harmonized System
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United States International Trade Commission. What Do All the Columns Mean?
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United States International Trade Commission. Harmonized Tariff Schedule – General Statistical Notes
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U.S. Customs and Border Protection. Column 1 / Column 2 / MFN / NTR – Countries That Does Business With the United States
9
Federal Register. Customs User Fees To Be Adjusted for Inflation in Fiscal Year 2026
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U.S. Customs and Border Protection. What Is the Harbor Maintenance Fee (HMF)?
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United States International Trade Commission. China Tariffs
12
Federal Register. Adjusting Imports of Aluminum and Steel Into the United States
13
The White House. Fact Sheet: President Donald J. Trump Strengthens Tariffs on Steel, Aluminum, and Copper Imports
14
International Trade Administration. AD/CVD Case Search
15
Office of the Law Revision Counsel. 19 USC 1621 – Limitation of Actions
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Office of the Law Revision Counsel. 19 USC 1592 – Penalties for Fraud, Gross Negligence, and Negligence
17
Office of the Law Revision Counsel. 19 USC 1595 – Searches and Seizures
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Office of the Law Revision Counsel. 19 USC 1592 – Penalties for Fraud, Gross Negligence, and Negligence
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U.S. International Trade Commission. Harmonized Tariff Schedule
20
U.S. Customs and Border Protection. CROSS – Access to Rulings Issued by Customs
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U.S. Customs and Border Protection. Requirements for Electronic Ruling Requests
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eCFR. 19 CFR 177.2 – Submission of Ruling Requests