A tariff is a customs duty imposed on imported or exported goods according to classification, origin, value and applicable trade rules. Most business usage refers to import tariffs.
How is a tariff calculated?
Assume an ad valorem duty rate of 7.5% and a customs value of $40,000. The illustrative tariff is $40,000 × 7.5% = $3,000, before taxes, fees or valuation adjustments.
Illustrative tariff calculation
| Calculation step | Amount | Method |
|---|---|---|
| Customs value | $40,000 | Illustrative declared basis |
| Tariff rate | 7.5% | Applicable rate |
| Illustrative tariff | $3,000 | $40,000 × 7.5% |
Actual customs value and rates depend on destination-country rules, product classification and origin.
Which tariff types exist?
Tariffs may be ad valorem, specific per unit, compound or subject to quotas and trade remedies. Preferential rates may apply when origin requirements are met.
What determines the rate?
Confirm the tariff classification, origin, customs value, destination and trade measures. A supplier's product description is not a binding classification.
What should an importer retain?
Keep classification support, invoices, valuation adjustments, origin evidence, declarations and duty-payment records for the required period.
