Reviewed by Sasha Božič, Licensed Customs Broker
Every 10-digit line in the Harmonized Tariff Schedule carries three kinds of duty rate. The Column 1 General rate applies to goods from most countries. The Column 1 Special rates apply when goods qualify for a trade program such as USMCA, shown by program codes. The Column 2 rate applies to a short list of countries without normal trade relations. Additional duties from Chapter 99 then stack on top of whichever rate applies.
The General rate is the normal trade relations rate, sometimes called the MFN rate. It can be ad valorem (a percentage of value), specific (an amount per unit, such as per kilogram) or compound (both). Many lines are Free.
Special rates apply only when the goods qualify for a program and the importer claims it. Each program has a code in the Special column, such as S for USMCA. Qualifying is not automatic. The goods have to meet the program's rules of origin and the claim has to be made on the entry, or later through a post-importation claim where the program allows one.
Column 2 rates are much higher and apply to goods from Cuba and North Korea, and since 2022 to goods from Russia and Belarus.
Why did I pay the General rate on goods from a free trade partner? Usually because no preference was claimed on the entry. That is one of the most common overpayments we find.
How do I find my rate? Start with the right HTS number. See how to find an HTS code.
Caspian's audit compares the rate paid on every line against the rate available. See our trade audit.
Works Cited:
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