| | All goods imported into the US are either subject to duty or duty free, depending on their classification under the applicable items in the HTSUS.
When goods are dutiable, ad valorem, specific or compound rates may be assessed.
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Ad valorem rate - the type most often applied - is a percentage of the value of the merchandise, such as 5% ad valorem.
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A specific rate is a specified amount per unit of weight or other quantity, such as 5.9 cents per dozen.
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A compound rate is a combination of both an ad valorem rate and a specific rate, such as 0.7 cents per kilo plus 10% ad valorem.
Rates of duty for imported merchandise may also vary depending upon the country of origin. Most merchandise is dutiable under the most favoured nation (MFN)?- now referred to as normal trade relations (NTR). Duty free status is available under various exemptions (e.g., GSP, FTA partners, preference programme beneficiaries, and other exemptions listed in HTSUS Chapter 98).
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