Trade & Tariff Glossary

MFN Rate

The default tariff rate applied to imports from most countries under WTO rules.

HTS Code

A 10-digit classification code that identifies a specific product in the US Harmonized Tariff Schedule.

TARIC Code

A 10-digit code used by EU customs to classify goods and determine applicable duties and measures.

HS Code

A 6-digit product classification code used internationally, maintained by the World Customs Organization.

Section 301

Additional US tariffs on Chinese goods under Section 301 of the Trade Act of 1974.

Section 232

US tariffs on steel and aluminum imports under Section 232 of the Trade Expansion Act of 1962.

IEEPA Tariff

Tariffs imposed under the International Emergency Economic Powers Act during declared national emergencies.

Ad Valorem Duty

A duty calculated as a percentage of the declared value of the imported goods.

Specific Duty

A duty calculated as a fixed amount per unit of quantity (e.g., per kilogram or per liter).

Customs Value

The declared value of imported goods used as the basis for calculating ad valorem duties.

MPF

Merchandise Processing Fee: a US customs fee of 0.3464% on most formal entries, with minimum and maximum caps.

HMF

Harbor Maintenance Fee: a 0.125% fee on the value of cargo imported through US ports.

Tariff Classification

The process of assigning the correct tariff code to imported goods based on their characteristics.

CROSS Ruling

A US Customs classification ruling from the Customs Rulings Online Search System.

BTI Ruling

A binding tariff information decision issued by an EU member state customs authority.

Trade Action

A government measure that imposes additional tariffs or restrictions beyond the base MFN rate.

General Rate of Duty

The standard duty rate in Column 1 of the US Harmonized Tariff Schedule, equivalent to the MFN rate.

Preferential Rate

A reduced duty rate available under a free trade agreement or preference program.

Rules of Origin

Criteria that determine where a product was made, used to qualify for preferential tariff rates.

Combined Nomenclature

The EU's 8-digit goods classification system, based on the HS with EU-specific subdivisions.

Antidumping Duty

An additional duty imposed on imports sold below fair market value to protect domestic industry.

Countervailing Duty

An additional duty imposed to offset foreign government subsidies on exported goods.