CBP Updates FAQ on Duty Rate Basics

CBP said it updated information on a frequently asked question on the basics for duty rates.

Question: Do duty rates vary according to the state in which the goods arrive? How are duty rates determined?

Answer: The state of arrival does not determine the amount of duty required for imported goods. Duty rates are established by Congress and are located in the Harmonized Tariff Schedule (HTS), which is published by the International Trade Commission (ITC). Imported goods are classified in accordance with the HTS, in which the applicable duty rates are listed. There are three columns with duty rates and the country of origin of the goods ultimately determines which rate should be used for the importation.

The general rate is intended for countries that have normal trade relations status with the U.S. The special rate is for countries that are not developed and/or are eligible for a international trade program. These rates of subsets under what is known as column (1) duty rates. Duty rates in column (2) are higher and are required for those countries that do not have normal trade relations status with the U.S. The countries that are eligible for international trade programs or subject to column 2 duty rates are listed in the HTS. Countries that are not eligible for a special duty rate under an international trade program or that are listed as a column 2 country have normal trade relations status with the U.S. and the duty rates in the general column (1) apply. Please be aware that although a country may be eligible for an international trade program, not all products made in that country are exempt from duty. If the trade program indicator code (i.e. A for the Generalized System of Preference) is not in the special section under the product's HTS classification number, the importation is not eligible for duty-free treatment. Duty rates are not binding and are subject to change.