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Customs & Tariff Classification

Tariff / Duty

Also known as: Customs Duty, Import Duty

A tariff, or customs duty, is a tax levied by a government on goods as they are imported (and occasionally exported), calculated most commonly as a percentage of the customs value (an ad valorem duty), as a fixed charge per unit of quantity or weight (a specific duty), or as a combination of the two (a compound duty). Tariffs raise revenue, protect domestic industries from foreign competition, and serve as instruments of trade policy and negotiation. The duty a shipment actually pays depends on its tariff classification, its declared customs value, its country of origin, and any preferential agreements or trade-remedy orders that apply.

The JFS takeLicensed customs broker · Filer 82G

The rate in the tariff schedule is increasingly the smaller half of the bill. Section 301, Section 232 and forced-labor actions sit in Chapter 99 and stack on top, and a line that reads "Free" in Column 1 can still owe double-digit percentages. We see the surprise most often on goods that were genuinely duty free for years.

Where it matters for compliance

  • Report Chapter 98 provisions first, then Chapter 99 additional duties, then the regular tariff line.
  • Duty is assessed on the entered value, which is the price actually paid or payable — not the retail or insured value.

Related terms

HTSThe Harmonized Tariff Schedule is the United States' implementation of the international Harmonized System, extending the common six-digit HS code to ten digits: the first six mirror the global HS, digits seven and eight set the legal duty rate, and digits nine and ten capture statistical detail for trade reporting.Country of OriginCountry of origin is the country in which a product was grown, produced, manufactured, or last substantially transformed, and it is a decisive factor in determining the duty rate, eligibility for preferential treatment, exposure to trade-remedy orders, quota limits, and marking requirements.Preferential TariffA preferential tariff is a reduced or zero duty rate that one country grants to goods originating in another under a free trade agreement or a unilateral preference program, in place of the standard rate applied to imports generally.

Reviewed by a licensed customs broker. Definitions are general information, not legal or customs advice for a particular shipment. Duty rates, tariff programs and agency requirements change frequently.