Import Duties In The U S

Import duty is a tax imposed by the government on items imported into the country. This duty is charged in most countries around the globe, including the U.S. Bringing an item into the U.S. from overseas will entail paying import duty or tariff as it is also called. Duty on imported items is calculated based on the classification into which the item falls. Within the manufactured, mineral-based, agricultural and miscellaneous items there are 22 categories subject to import duty in the U.S.

Calculation of Import Duty

Import duties in the U.S. are charged on all items that enter the country for the purpose of sale in the U.S. market. The calculation of import duty on an item is done using the Harmonized Tariff Schedule, or HTS. Since import duties are standardized across the country, the importer will pay the same tariff, regardless of which U.S. port the goods enter through. Each taxable item has a 10 digit HTS classification, if the exporting country has normal trade relations with the U.S. Tariff is charged based on the type of product, declared value, country of origin, quota controls, weight (mass), per unit charge and percentage of value.

Classification of Import Duty

U.S. import duty classifications are listed in the HTS. Each section of the HTS manual covers a specific classification. Some examples of the various sections include: sections 1 to 4 of the HTS list cover animal and vegetable products; Section 5, mineral products; Section 6, chemical and allied industry products; Section 7, plastics and rubber articles; Section 8, articles made from animal skins like leather; sections 9 and 10, wood and paper articles; section 11, textiles.

Items Exempt From Import Duty

Some imported items are completely exempt from import duty charges. The items that are exempt from import duty in the U.S. include: household and personal effects; books, instruments, professional equipment used overseas and returning to the U.S.; containers of contents exported out of the U.S. and being returned; domestic animals exported for pasturage purposes and returning within eight months of export; specifically allowed for re-imported items; items exported for repair (duty may be chargeable on the repaired portion).

Special Import Duty Rates

Textiles are an important commodity ,and the U.S. government charges special import duty rates to protect domestic production. There are general rates that apply to most nations, considered normal in trade relations. Cotton yarn, for example, has a high import duty rate, but cotton gauze has no import duty. Special rates apply to specific governments related to a specific industry. These rates are lower than the general rates and can be as low as zero. Restricted rates apply to countries with whom the government wishes to restrict imports. An examples would be Cuba, where import duties are as high as 90 percent.