Tariffs and Import Fees
What is a tariff?
A tariff or duty (the words are used interchangeably) is a tax levied by governments on the value including freight and insurance of imported products. Different tariffs are applied on different products by different countries. The average duty worldwide is about 5 percent. National sales and local taxes, and in some instances customs fees, will often be charged in addition to the tariff. The tariff, along with the other assessments, is collected at the time of customs clearance in the foreign port. Tariffs and taxes increase the cost of your product to the foreign buyer and may affect your competitiveness in the market. So knowing what the final cost to your buyer is can help you price your product for that market. In addition, your buyer may ask you to quote an estimate of these costs before making the purchase. This estimate can be made via email, phone or in the pro forma invoice.
Some countries have very high duties and taxes; some have relatively low duties and taxes. If your product is primarily made in the U.S. of U.S. originating components it may qualify for duty-free entry into countries with which the U.S. has a free trade agreement (FTA). We currently have FTAs with more than 20 countries. Targeting FTA countries is a good market entry strategy because buyers pay less tariff for goods made in the U.S. compared with similar goods from countries without FTAs. Here are the steps for finding and calculating estimated tariffs and taxes. Keep in mind that what you get from this process is an estimate. Only the customs officers in the country where the goods clear can make the final determination.
Step 1: Determine your HS or Schedule B Number
The first step in determining duty and tax information is to identify the Harmonized System or Schedule B number for your product(s). More importantly, your goods won’t ship without this number on key shipping documents.
The Census Bureau sponsors a free online tool called the Schedule B Search Engine and an instructional video to help you classify your products. We also have a recorded webinar on the topic, which goes into greater detail about using the search engine tool and a second tool for finding the tariffs and duties by the importing country.
If after viewing these learning aids you remain unsure of the best HS number for your product, you can phone U.S. Government commodity classification experts at 1-800-549-0595, option 2.
Step 2: Determine Tariff Rates
Once you know your product’s Schedule B or HS number (the first six digits of the 10 digit Schedule B number), you can determine the applicable tariff and tax rates for a specific foreign country. Here’s how. The first link takes you to a third party information provider with tariff and tax information on more than 100 countries. By accessing the site through export.gov (the site you’re visiting now), there is no charge to get the information you need. The data available cover shipments from the U.S. to these 100 plus countries. Please read this Disclaimer statement regarding third-party information providers.
Watch this short video on how to use the database.
Customs Info Database Registration required. Free.
If you can’t access the video, here are the instructions for accessing the Customs Info Database:
(1) Go to “Create Account”.
(2) Enter the appropriate fields with your personal information.
(3) Once you receive an email confirming you are registered, log on to “Customs Info” by going back to the home page.
(4) Enter the country and Harmonized System Number / Schedule B number.
(5) Then click the “Search” button listed below the Tariff Number.
(6) Next to your Harmonized System Number / Schedule B number, choose the icon that is farthest away from the Harmonized System Number. If you place your mouse’s cursor on that icon, the words “Calc duties and taxes” will appear.
(7) On the next screen, press the “Calculate” button in the middle of the screen.
(8) You will then be able to view all the taxes and duties for your Harmonized System Number / Schedule B number.
There are about 40 countries of possible interest to you that are not included in the Customs Info Database. We have created a second database with tariff and tax information from these countries. In general, they are the tariff and tax books published by the government of the country, and we try to acquire the most recent publication.
Other Country Specific Tariff and Tax Information
Here are some additional tariff resources that include information that may be of use to you.
- FTA Tariff Tool - U.S. Government resource for FTA beneficiary countries.
- U.S. Government Resource for exporting Textiles; Office of Textiles and Apparel.
- U.S. Government Tariff Resources for Agricultural Exports
- Tariff and Tax Information for U.S. Territories
- Personal Shipments and Gifts
- Other useful Tariff Resources: WTO Tariff Database, use the applied rates. Free. Requires registration.
- Your preferred shipper or freight forwarder
For Assistance
After reviewing the resources presented here you may have new questions about free trade agreement countries or country markets with multiple fees or that express charges in the country’s national currency. Read more information on FTAs, specifically whether or not a special document is needed or whether your goods qualify.
For these and other questions or information requests, send us a quick email and we’ll get back to you within one business day.
