Everything you need to know about HTS code classification, duty recovery, and our service.
About HTS Classification
What is an HTS code and why does it matter?
The Harmonized Tariff Schedule (HTS) is the system used by US Customs and Border Protection (CBP) to classify every imported product. Each product is assigned a 10-digit code that determines the applicable duty rate. With over 17,000 HTS codes and duty rates ranging from free to 25%+, small classification errors can cost importers significant amounts. For example, a product classified at 5% instead of free on $5M annual value = $250,000 overpaid per year.
How common are HTS misclassifications?
Very common. Industry studies suggest that 40-60% of importers have at least one misclassified product line. The HTS schedule is extremely complex, changes frequently, and requires deep product knowledge to apply correctly. Even experienced customs brokers working with many clients can't maintain expertise in every product category. Our AI specifically focuses on finding these errors at scale.
What is a CBP Binding Ruling?
A CBP Binding Ruling is an official written decision from US Customs and Border Protection on the correct HTS classification of a specific product. These rulings are publicly accessible through the CROSS (Customs Rulings Online Search System) database and represent CBP's official position. When we cite a binding ruling in a protest, we are using CBP's own precedent against them - making denials much harder to sustain.
What are the General Rules of Interpretation (GRI)?
The GRI are six hierarchical rules that govern how every product must be classified in the HTS. GRI 1 (classification by section/chapter/heading notes) takes precedence, followed by GRI 2 (incomplete or unassembled goods), GRI 3 (multiple classifications), GRI 4 (most similar goods), GRI 5 (cases and packing), and GRI 6 (subheading classification). Our AI applies these rules systematically to every product analyzed.
About the Protest Process
What is a CBP Protest under 19 USC 1514?
A protest is the formal legal mechanism for challenging CBP's classification decision after an entry has been liquidated. Under 19 USC 1514, importers have the right to protest CBP decisions including classification, appraisement, and rate of duty within 180 days of liquidation. An approved protest results in reliquidation of the entry and a refund of any excess duties paid.
What is "liquidation" and why does it matter?
Liquidation is the final determination by CBP of the duties owed on an entry. Until an entry is liquidated, CBP can still make changes. After liquidation, the 180-day protest clock starts. Entries typically liquidate 314 days after entry (one year after filing, per statute), though CBP can extend this. Always check the liquidation date on your entry to confirm you're within the protest window.
What happens if CBP denies my protest?
If CBP denies a protest, you have 180 days from the denial to file a Summons with the Court of International Trade (CIT). The CIT is a federal court specifically for customs and international trade matters. We note that denials of protests citing applicable Binding Rulings are relatively rare - CBP is generally bound by its own precedent.
Can I file a protest myself, or do I need an attorney?
Technically, importers can file protests themselves using CBP Form 19. However, the legal quality of the protest significantly affects approval rates. A protest citing specific statutory provisions, GRI analysis, and applicable Binding Rulings is far more likely to be approved than a simple objection. Our paid tier provides a professionally drafted protest letter reviewed by a licensed customs attorney.
About Our Service
How does the AI analysis work?
Our AI model has been trained on the complete HTS schedule, Chapter Notes, Section Notes, Explanatory Notes, and hundreds of thousands of CBP Binding Rulings. When you upload entry data, the AI reads each product description and declared HTS code, then searches for (1) incorrect application of GRI rules, (2) applicable Binding Rulings supporting alternative classifications, and (3) rate differentials. It outputs a structured analysis with confidence ratings.
Is my data secure?
Yes. All data is transmitted using TLS 1.3 encryption. We do not store your entry data after the analysis is complete - it exists only in memory during processing. We do not log HTS codes, product descriptions, or any identifiable business information. Your competitive product information is not retained in any form.
What if the AI makes a mistake?
This is why we include licensed customs attorney review in the paid tier - every protest letter is reviewed by a human expert before delivery. AI findings are categorized by confidence level: high-confidence findings are those directly supported by applicable Binding Rulings with very low error risk. Medium and low-confidence findings require more judgment. We recommend only pursuing high-confidence findings via protest.
Do you guarantee a refund?
No. No service can legally guarantee CBP approval of a protest. CBP retains final authority over classification decisions. However, we do guarantee our work: if CBP denies a protest that we assessed as high-confidence, we refund the $4,500 flat fee. The 10% success fee is only owed on actual recoveries received.
Is this legal advice?
No. HTS Code Auditor provides informational analysis of HTS classification using AI. This is not legal advice and does not create an attorney-client relationship. We strongly recommend consulting with a licensed customs broker or customs attorney before making any classification decisions or filing protests. The paid tier's attorney review is a quality check, not legal representation.
Still Have Questions?
Run a free audit - our analysis report often answers specific questions about your classification situation.