HTS Code For Food and Agriculture Products

Working in the food industry through international trade pathways emphasizes the importance of understanding the food tariff code in the HTS. This classification ensures compliance, collection of the proper amount of duty, and prompt customs clearance. Food and agricultural products can be numerous and involve either low or high levels of processing. They range from raw agricultural commodities to highly processed foods (including the infamous ‘food-like substance’). A food classification guide provides an overview of the Harmonized Tariff Schedule classification system with a food and agriculture imposition. 

Structuring the Harmonized Tariff Schedule for Food & Agriculture

HTS food tariff classification uses six-digit international Harmonized System classification codes with extensions for the importing country. In the case of the United States, the HTS extends to a 10-digit code providing national tariff information.

Food and agricultural products are primarily found under the first 24 chapters of the Harmonized Tariff Schedule for food. These 24 chapters consist of various groupings of food and agricultural products. It is delineated by the product’s origin, how it has been processed, and its intended use, making it easier to understand and assign a tariff.

Classification of Live Animals and Related Products

Live animals and animal products are classified mostly under Chapters 1 through 5. The HTS food tariff classification delineates the differences between species and product types. Key aspects include:

• Live Animals (Ch. 1): Covers food animals intended for farm, slaughter, or breeding purposes, such as cattle, sheep, goats, and poultry.
• Meat and Edible Meat Offal (Ch. 2): Distinguishes between fresh, chilled, frozen meat from various species such as bovine, porcine, and poultry, aspects such as cuts of meat and means of preservation, etc.
• Fish and Seafood (Ch. 3): Fresh, frozen, or processed fish, shellfish, and mollusks are included, classified by species and not processed.
• Dairy Products and Eggs (Ch. 4): Milk, cheese, butter, cream, and eggs are defined based on processing and preservation methods.
• Other Animal Products (Ch. 5): Animal fats and greases, and various offals are classified under the HTS code food products.

HTS Codes for Plant-Based Agricultural Products

Chapters 6 through 14 address a variety of plant-based items, including food and industrial raw products, which require knowledge of explicit classifications because tariffs may vary greatly. Classifications of the Harmonized Tariff Schedule for food under this category are as follows:

• Live Plants and Bulbs (Ch. 6): All nursery stock and floricultural products for planting or ornamental purposes.
• Vegetable and Edible Roots (Ch. 7): Classified under HTS food tariff classification by species (potatoes, onions, asparagus), including fresh, chilled, or dried.
• Fruit and Nuts (Ch. 8): Citrus fruits, apples, berries, and tropical fruits will all have unique classifications that support differentiated tariffs.
• Coffee, Tea, and Spices (Ch. 9): Associated with natural-state leaf tea, dried spices or extracts, coffee beans, or raw or processed forms of tea leaves.
• Cereals and Cereal Products (Ch. 10 & 11): Whole grains, rice, wheat, and their processed forms into flour or starch.
• Oil Seeds and Oleaginous Fruits (Ch. 12): Soybean, palm oil kernel, or flaxseed, that can be refined into edible oil, or have other uses.
• Gums, Resins, and Other Vegetables (Ch. 13 & 14): Natural gums, plant extract, or other raw, prepared forms for processing food materials.

Specialized Chapter: Fats, Oils, and Waxes

Chapter 15 classifies edible oils and fats into the category of products based on their source (animal or vegetable) and the level of processing. This Harmonized Tariff Schedule for food chapter includes:

• Pure oils and fats that are unmodified and are intended to be used in food or as an ingredient. 
• Margarines, a substitute for butter, or waxes made from vegetable oils; for example, palm and cacao.

Prepared Food Products and Beverages

Chapters 16 to 24 of the HTS code food products that are all dedicated to food that is commercially processed, packaged, or otherwise prepared for consumption by humans. Key categories include:

• Meats and Fish Preparations (Ch. 16): Mainly sausages, canned meats, and fish products
• Sugar and Confections (Ch. 17): Refined sugars, chocolates, candies, etc., are generally more differentiated in rates and tariffs for specific products. 
• Cocoa Preparations (Ch. 18): Cocoa beans, cocoa pastes, butters, and chocolates are treated as distinct products, all coded separately. 
• Bakery and Flour Products (Ch. 19): Bread, breakfast cereals, cookies, etc. 
• Fruit and Vegetable Preparations (Ch. 20): Canned, preserved, frozen fruit and vegetable products.
• Miscellaneous Preparations (Ch. 21): Soups and sauces. salad dressing, and some flavoring essences.
• Beverages and Vinegar (Ch. 22): All alcoholic beverages, mineral waters, and vinegar.
• Residue and Animal Feed (Ch. 23): All animal feed or fertilizer products extracted from the food chain.
• Tobacco and Substitutes (Ch. 24): Raw and manufactured tobacco and substitutes. 

Crucial Elements to Ensure Accurate HTS Classification

Achieving accurate food tariff code classifications is reliant on a complete comprehension of product characteristics.

• Predominant Component and Ingredient: The main material determines the HTS code food products classification, especially in composite products.
• Method of Processing: Whether commodities are raw, prepared, dried, salted, or based on canning will determine which classification chapters apply.
• Packaging State: Bulk commodities and consumer packaged goods will be categorized differently, based on their use and how they are traded.
• Delineated Usage: Food products for human consumption will differ from those for animal feed or for industrial purposes, which will influence the Harmonized Tariff Schedule for food classification decisions.
• Traceability of Origin: The distinction of where the product originated – a farm, imported, or as a processed product – will influence the tariff customs duty charged.

Benefits of Proper HTS Classification in Food and Agriculture Trade

A good understanding of the valid use of the food tariff code is crucial for the improvements to business operations. Key benefits include:

• Better Tariff and Duty Payments: Correct HTS food tariff classification will ensure the right amount of duty is paid, without underpayment fines or overpayment of duties.
• Eligibility for Trade Agreements: Correct use of HTS codes will open up preferential tariffs under Trade Agreements, such as USMCA, ACFTA, and EU Trade Agreements.
• Compliance with Regulations: Food safety and health and sanitary regulations compliance through the food tariff code will be met, and the chance of customs holds and rejection will be reduced.
• Faster Customs Processing: Accurate coding allows customs processing to happen faster, reducing delays in supply chain logistics.
• Informed Market Intelligence: Appropriate classifications will provide valid trade data for business intelligence, forecasting, and strategy.

Best Practices for Classifying Food & Agricultural Products

Classifying food and agriculture items accurately is an active process and requires due diligence. Below are a few suggestions:

• Complete Product Review: Examine products in detail to look through the ingredient, processing design, and packaging before doing HST food tariff classification.

• Consult Experts and Sources: Routinely check a country’s HTS schedules and the international Harmonized system food classification for tariff assignment to the product.
• Proactively Involve Compliance Specialists: A customs broker and trade consultant can often provide clarity on difficult classifications and limitations of liability associated with government enforcement.
• Keep Conscientious Records: Store all technical specifications of products, certificates of origin, and sanitary documentation for impending government audits.
• Provide Training and Improve Education: Training your teams on updated HTS code food products and compliance obligations.
• Keep Watch for Changes to Regulation: Be aware of legislative or policy changes that impact HTS code and classification requirements.

Crafting Competitive Advantage Through HTS Mastery

Accurate HTS food tariff classification firms up the operational framework of food and agricultural trade by managing costs, compliance, and interruptions in trade. Companies with a consistent process for classification can derive a significant advantage in the global marketplace. Credlix is well equipped to provide supporting food and agricultural businesses with formal trade compliance advice and specific trade finance solutions tailored to your business needs. 

Partner with Credlix to get support for your international market access and assist with duty payments and compliance. 

Frequently Asked Questions

Q1. How is classification of live animals achieved in the HTS system?

Live animals are included in Chapter 1 based on species and commercial applications, such as breeding or slaughter.

Q2. What influences the categorization of prepared food products?

The extent of processing and the main ingredient will determine classification within chapters 16 to 22.

Q3. Can additive ingredients affect HTS coding for food?

Yes, additives or major ingredient composition shifts can lead to a change in food tariff code classifications.