Tariff

What is a tariff?

A tariff is a publication of rates, charges, classifications, and rules. A tariff, as it relates to U.S. Customs, is a list of products to which a rate of tax applies, as determined by the Harmonized Tariff Schedule (HTS). A tariff determines the duty amount owed for importing or exporting a product.

What's the difference between duty and tariff?

Duty is the actual amount of money owed as a result of a tariff, while tariffs determine the percentage of tax that applies to products. Duty is calculated by multiplying the value of a product by the number of products by the tax rate that applies to that product.

Tariff and duty rate are often used interchangeably, although in some contexts one is more appropriate than the other. For instance, tariff is used to describe the list of products to which a new duty rate applies.

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