The Nitty-Gritty of United States Import Duty Rates

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United States Customs and Border Patrol has a duty rate for importing virtually any item on the planet. There are however, a number of things you might want to consider before calculating your landed cost based upon a particular rate. Here is your intro guide to deciphering tariff schedules, rulings and trade agreements. The Harmonized Tariff System (HTS) is a reference manual roughly the size of an unabridged dictionary containing duty rates for virtually any item in existence. Just as a dictionary has an order for organizing words (and their definitions) so does the HTS. Goods are arranged in categories or numbered chapters with similarly typed items. For instance, Chapter 89 is where duty rates for ships, boats and other marine or floating structures can be found.

Classification experts spend years learning how to properly classify import items. This schedule of rates will enable you to get an approximate/general rate for a particular product. An important fact to remember is that the United States Customs and Border patrol make the final determination on the correct rate of a particular good and not the importer. I would recommend contacting a customs brokerage house when in doubt. It is important to begin working with a customs broker in the early stages of your import venture. Aside from utilizing them to strictly clear your goods through customs, many times they can arrange logistics and be an essential resource for many aspects of the import process. I have worked with Encore Forwarding (Jacksonville, FL) for a number of years and can say nothing but great things. http://www.encfor.com/

To review the Harmonized Tariff Schedule by Chapter please visit the United States International Trade Commission at: http://www.usitc.gov/tata/hts/bychapter/index.htm

The U.S. International Trade Commission also has an interactive and searchable database that can help in determining rates of your goods at: http://dataweb.usitc.gov

Ruling Letters / Binding Rulings are requested as a means to confirm a particular items duty. Additionally the importer may need additional information regarding a particular transaction, definitive interpretation of applicable law or any other additional information. Requests for tariff classifications can be made in the form of a detailed letter to any service port office or:

Director, National Commodity Specialist Division
U.S. Customs and Border Protection
Attn: CIE/Ruling Request
One Penn Plaza-10 Floor
New York, NY 10119

Alternatively, information on electronic ruling requests can be found here: http://www.cbp.gov/xp/cgov/toolbox/legal/Rulings/eRulingRequirements.xml

Customs Rulings Online Search System (CROSS) It is possible that in-fact you may not be the first person to inquire for or about a particular ruling/situation. You should search and review the Customs and Border Patrol website’s CROSS database for information on past rulings: http://rulings.cbp.gov

Reduced Duty Rates by Country Consider that not all countries are treated equally and are sometimes covered under international trade agreements. To obtain a current list of countries that are eligible for reduced duty rates or duty-free treatment under an international trade agreement (such as NAFTA, GSP or CBI), please visit the International Trade Commissions website at : http://www.usitc.gov/tata/hts/bychapter/0702gntoc.htm

Be aware, not all goods manufactured, produced and exported from an eligible country or international trade agreement are eligible for reduced or duty-free treatment.

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dylan@sourcejuice.com

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December 12, 2007 | Filed Under Customs, Landed cost 

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One Response to “The Nitty-Gritty of United States Import Duty Rates”

  1. importing from china, calculating landed costs, importing marble | SourceJuice on April 6th, 2008 8:33 pm

    […] Customs Duty/ fees : Check out an early SourceJuice article to help you figure out customs duty fees on your shipment, “The Nitty Gritty of United States Import Duty Rates“. […]

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