The import duty is a form of tax collected on goods that are imported to the US along with some goods which are exported from the US by the customs authority. Often, the value of imported or exported goods determines the import duties. As per the various context, the import duties may be called as customs tariffs, customs duties, import tax or import tariff. The basic purposes of import duties are to grow the government revenue and protect and promote the interest of the domestic market and domestic products or manufacturing. Besides these two objectives, another or third goal of collecting import duties is to penalize a certain country in terms of charging increased import duties on its imported goods. Get in touch with Clearit USA customs consulting if you are doing import and export business easy clearance of your imported or exported good through the customs.

The US Congress established its import duties in the United Nations. In addition to this, the HTS or the harmonised tariff schedule generally lists the import rates which is then duly published by the USITC or the International Trade Commission. In the HTS lists for imports, different rates are usually determined for different goods of different countries based on the trade relations or bilateral relations of different countries with the US. The as usual or general rates are often applied with the countries who have normal trade relationship with the US. The countries who do not have a normal trade relationship or have not developed or not eligible for an international trade program are levied with a special importation rate for their goods.

Many international organizations, as well as treaties across the world, put enormous impacts on the US importation duties. Most countries around the world often try to reduce import duties and establish free trade relationship with the US. Similarly, the World Trade Organization or the WTO have been also promoting its member countries through enforcing that its member countries should enjoy the reduced tariffs by the US. The member countries of different international organizations come up with various commitments during summits with complex negotiations.

One more example of international attempt to reduce customs duties and tariffs is the North America Free Trade Agreement or the NAFTA which was agreed upon by the US, Canada and Mexico. Through NAFTA, various customs duties and tariffs have been eliminated except on certain agricultural and prohibited or restricted products between the three-member countries. The NAFTA was further renewed with new deals called USMCA in the year 2018.