Understanding the HTS System: A Guide for Metal Buyers
If you’re in the business of buying stainless steel, titanium, or nickel alloys, you’ve probably run into the Harmonized Tariff Schedule (HTS). And if you haven’t, well, congratulations—you’ve dodged a bureaucratic headache (for now). But sooner or later, the HTS will come knocking, and when it does, you’ll want to know how it works, because it directly affects your bottom line.
What Is the HTS System?
At its core, the Harmonized Tariff Schedule (HTS) is a giant rulebook that decides how much tax (or tariff) you’ll pay when you import metal into the U.S. The HTS determines how much duty you pay, whether you qualify for exemptions, and if you need to brace yourself for additional trade restrictions. Every type of metal product has its own 10-digit HTS code, and that code determines how much duty you pay, whether you qualify for exemptions, and if you need to brace yourself for additional trade restrictions.
How HTS Codes Are Structured
HTS codes have a hierarchy:
First 6 digits: These are standard worldwide and used by over 200 countries.
Digits 7-10: This is where the U.S. gets specific, adding its own nuances.
For example, a stainless steel strip might be classified under HTS code 7220.20.10.00, where:
72 – Chapter: Iron and Steel
20 – Heading: Flat-rolled stainless steel strip
20 – Subheading: Cold-rolled stainless steel strip
10 – Further U.S. specification
00 – Statistical suffix for trade tracking
Yes, it’s dry, but understanding this system can mean the difference between paying the right tariff—or getting hit with unexpected costs that eat into your margins.
Chapters for Other Flat-Rolled Metal Products
Titanium: Chapter 81 (HTS codes beginning with 8108)
Nickel: Chapter 75 (HTS codes beginning with 7502, 7504, and 7506)
HTS Codes for Light Gauge Wire
Stainless Steel Uncoated Wire: 7223.00.50.00
Copper Uncoated Wire: 7408.19.00.00
Why the HTS System Matters for Metal Buyers
1. Controlling Costs
Nobody likes paying more than they have to. Getting your HTS classification right means you know exactly what tariffs apply and whether any trade agreements can reduce or eliminate those costs.
2. Staying Out of Trouble
Ever had an import held up at customs? It’s a nightmare. Misclassify your metal, and you could face delays, fines, or extra duties. Knowing your HTS codes ensures compliance and keeps your supply chain running smoothly.
3. Leveraging Trade Agreements
Trade agreements like USMCA (United States-Mexico-Canada Agreement) can be your best friend if you know how to use them. The right HTS classification could qualify you for reduced tariffs, but you need to be on top of it to take advantage.
4. Optimizing Your Supply Chain
Smart buyers use HTS classifications strategically—sourcing metals from the right countries, timing purchases around tariff changes, and avoiding unnecessary fees. It’s all about playing the game better than your competitors.
5. Understanding Section 232, TRQs, and Trade Policies
HTS classifications also determine whether your imports are subject to additional tariffs under Section 232. Understanding how these policies affect your HTS classification can help you plan better and minimize unexpected costs.
Navigating HTS Codes with Ulbrich
Here’s the thing: you don’t have to navigate this alone. At Ulbrich, we live and breathe metal sourcing, and we’ve been helping buyers like you make sense of trade regulations for decades. We know the ins and outs of tariffs, duty rates, and compliance challenges, and we can help you avoid the pitfalls that trip up even the most seasoned buyers.
So, whether you’re knee-deep in import spreadsheets or just starting to think about global sourcing, Ulbrich is here to help you win the game of international trade.
