Understanding MID & HTS codes for Smooth U.S. Customs Clearance

This article explains what these codes are, why they matter, and how to prepare them for seamless shipping.

In response to evolving U.S. import requirements, ensuring the smooth clearance of your valuable packages through U.S. Customs and Border Protection (CBP) is more critical than ever. To avoid delays, additional tariffs, or penalties—particularly amidst the ongoing China-US trade war—shippers must provide two key pieces of information: the Manufacturer Identification Code (MID) and the Harmonized Tariff Schedule (HTS) code. These codes help CBP verify the origin, manufacturer, and tariff classification of your goods, streamlining the customs process. These codes are especially crucial for express shipping services, such as FedEx and UPS.

What is the Manufacturer Identification Code (MID)?

How to Create a MID Code?

What is the Harmonized Tariff Schedule (HTS) Code?

How to Find an HTS Code?

Why These Codes Are Critical in 2025?

How to Prepare MID and HTS Codes for Your Shipment?

What is the Manufacturer Identification Code (MID)?

The MID is a unique identifier that represents the manufacturer, producer, or exporter of the goods being shipped to the United States. The MID helps CBP track the manufacturer’s identity, verify the country of origin, and ensure compliance with trade regulations, including tariffs tied to the China-US trade war.

How to Create a MID Code?

The MID is constructed from the manufacturer’s details, not the shipper’s, unless they are the same entity. Here’s how to generate it:

1. ISO Country Code: Use the two-letter code for the country where the product was manufactured (e.g., VN for Vietnam, TH for Thailand).

2. Manufacturer’s Name: Take the first three letters of the manufacturer’s first name and, if applicable, the first three letters of their second name. For a single name, use up to six letters (e.g., “SUNNY” becomes “SUN”).

3. Address Digits: Include up to four digits from the highest numerical part of the manufacturer’s address (e.g., “1234 Industrial Road” becomes “1234”).

4. City Name: Use the first three letters of the manufacturer’s city (e.g., “HANOI” becomes “HAN”).

Example: For Sunny Electronics, 1234 Industrial Road, Hanoi, Vietnam, the MID would be VNSUN1234HAN.

Why the MID Matters?

The MID is crucial for verifying the country of origin, especially for shipments from regions like Hong Kong, which may face scrutiny due to trade tensions. For instance, a product made in Malaysia but shipped from Hong Kong must have a MID reflecting the Malaysian manufacturer (e.g., MYSUN1234KUL) to avoid being mistakenly tariffed as a Chinese product, which could incur additional duties (e.g., 10% or more in 2025). Carriers like FedEx and UPS require the MID on the commercial invoice to submit to CBP, ensuring accurate customs processing.

What is the Harmonized Tariff Schedule (HTS) Code?

The HTS code is a 10-digit number used to classify imported goods based on their type, material, and intended use. It determines the applicable tariffs, duties, and trade regulations for your shipment. The first six digits align with the international Harmonized System (HS) code, while the additional four digits are specific to U.S. requirements.

How to Find an HTS Code?

1. Identify the Product: Determine the product’s material, function, and category (e.g., a cotton T-shirt, a steel tool, or an electronic device).

2. Use Online Tools: You can find information related to HS codes on the CBP website.   

Example: A cotton T-shirt might have the HTS code 6109.10.0012, where “6109” covers T-shirts, “10” specifies cotton, and “0012” refines it further for U.S. tariffs.

Why the HTS Code Matters?

The HTS code directly affects the duties applied to your shipment. For example, goods from China may face higher tariffs than those from countries with U.S. trade agreements, like Vietnam. An incorrect HTS code can lead to overpayment, underpayment (resulting in penalties), or delays if CBP requests clarification. Accurate HTS codes also ensure compliance with product-specific regulations, such as safety standards for electronics or labeling for textiles.

Why These Codes Are Critical in 2025?

The China-US trade war has heightened CBP’s focus on shipments from Asia, including transshipments through Hong Kong. Misdeclaring the country of origin or manufacturer could lead to:

• Tariff Misapplication: Goods incorrectly linked to China may face additional duties (e.g., 25% instead of lower rates for other countries).

• Shipment Delays: Missing or incorrect MID or HTS codes can trigger holds by carriers like FedEx or CBP inspections.

• Penalties: Non-compliance may result in fines or seizure of goods, especially for high-value or regulated items.

By providing accurate MID and HTS codes, you help CBP verify that your product, say, made in Thailand and shipped from Hong Kong, qualifies for the correct tariff rate and clears customs smoothly.

How to Prepare MID and HTS Codes for Your Shipment?

1. Gather Manufacturer Details:

   • Confirm the manufacturer’s full name, address, city, and country with your supplier. Use this to create the MID code.

   • Ensure the MID aligns with the country of origin declared on the commercial invoice and Certificate of Origin (CoO).

2. Research the HTS Code:

   • Use the USITC’s HTS database or consult a customs broker to find the precise 10-digit code for your product.

   • Double-check that the code matches the product’s description and material to avoid misclassification.

3. Update the Item description:

   • List the MID code, HTS code, country of origin, and detailed product description on the "item description field".

   • For example: “Cotton Men T-shirts, MID: VNSUN1234HAN, HTS: 6109.10.0012.”

   
   
   

   Last Updated:  15 Apr 2025