CBP Resolutions : Import Duty
Are you planning to import merchandise into the U.S. ?
Do you want to know whether your goods are dutiable or absolutely free of duty according to the U.S. Tariff Schedule?
This article tells you everything you need to know about import or customs duty.
All goods that are imported into the United States are either subject to an import duty or a duty-free entry as mentioned and classified in the Harmonized Tariff Schedule of the United States.
Imports Duty, also referred to as Customs Duty is a tax or tariff that is imposed on goods when they are transported across international borders. It’s purpose is to protect the economy, jobs, residents, environment, etc. of each country by carefully controlling the flow of goods that enter or exit through its ports, especially prohibited or restricted goods.
If your goods are dutiable, this means that you need to pay Customs Duty. Each item has a specific duty or tax rate. This rate is determined by many factors, such as, where the article was purchased, the country it was manufactured in and the material it is made of.
When your merchandise is dutiable, specific, ad valorem, or compound rates are generally assessed. Specific rate is the specified amount on each unit of weight, volume or other quantity unit, for instance, 5 cents per dozen. An ad valorem rate is a percentage of the total value of merchandise, for instance, 2% ad valorem. Whereas, a compound rate combines both specific and ad valorem rates together, for instance, 0.5 cents per kilogram plus 15% ad valorem.
The Harmonized Tariff System (HTS) is created by the United States International Trade Commission (USITC) and provides duty rates for almost every item that exists and updated every year. CBP is responsible for administering the Harmonized Tariff Schedule of the United States Annotated (HTSUS) when you goods arrive at a U.S. Port of Entry.
Rates of customs duty on imported goods vary depending on the country of origin. Most goods are dutiable if they are imported from countries that have normal trade relations with the United States. The rates for dutiable goods are mentioned in the General Column of the tariff schedule under column 1. Goods from countries whose rates have not been extended are dutiable and mentioned in Column 2 of the U.S. tariff schedule.
Goods that are duty-free are also mentioned in the Special Column in the tariff schedule under Column 1. But the importer is responsible to prove that he is eligible for an exemption from duty when the goods reach the U.S. Port of Entry.
Click here to find out whether your merchandise falls in the dutiable or duty-free category.