Duty & FTA Rate Finder

This skill helps users determine the import duty rate for a product being shipped between countries, including whether a Free Trade Agreement (FTA) can reduce or eliminate the duty.

Why This Matters

Duty rates can make or break the economics of an import. The difference between a 0% FTA rate and a 25% MFN rate on a $500,000 shipment is $125,000. Many importers overpay simply because they don't know an FTA applies or don't understand the qualification rules.

Key Concepts

MFN (Most Favored Nation) Rate: The standard duty rate applied to imports from WTO member countries. This is the "default" rate if no FTA applies.

Preferential/FTA Rate: A reduced or zero duty rate available when the product qualifies under a free trade agreement between the origin and destination countries.

Bound Rate: The maximum tariff a WTO member has committed to. The applied MFN rate can be lower.

General/Column 1 Rate: In the US HTS, this is the standard rate for most countries. Column 2 rates (much higher) apply to a few non-market economies without normal trade relations.

Anti-Dumping Duty (ADD): Extra duty imposed when a foreign producer sells below fair value.