5/10/11

Types of Import Duties

    • Different import duties will apply for your imports. Stockbyte/Stockbyte/Getty Images

      According to United States International Trade Commission, the type and value of import duty to pay for imports ranks as a major concern for many international traders. Trade between U.S. and other countries attracts different duties on imports, because of trade regimes such as trade agreements, subsidies and tariffs. Depending on the type of product imported and the country of origin, different import duties will apply.

    Anti-Dumping Duty

    • International trade law defines "dumping" as an act where a manufacturer in one country exports a product to another country at either a price below the cost of production or at a price below its home market price. Though dumping may benefit the consumer, it subjects producers in the importing countries to losses. To protect the local manufacturing industry from unfair foreign competition, the U.S. government imposes an anti-dumping duty as a penalty on all suspiciously low-priced imports. The anti-dumping duty reflects the difference between the importing country's price of the goods at the time of importation and the market value of similar goods in the exporting country.

    Liquidated Import Duty

    • To import goods into the U.S., the importer informs the customs department of its decision to import, then customs will clear the entry for delivery. Importers must then calculate the applicable duties and taxes, and remit to them. These duties paid after an importer's entry for delivery has been cleared are known as "liquidated" import duties, explains John Goodrich on the International Business Training website.

    Countervailing Duties

    • Subsidized goods allow a producer to sell at a lower price. For subsidized sold in an international market, the government of the importing county levies special custom duties -- referred to as countervailing duties -- to protect its domestic producers from incurring losses. The World Trade Organization established these rules to neutralize the effect of subsidies on foreign producers, according to the U.S. International Trade Commission, or USITC.

      In the U.S., the International Trade Administration of the Department of Commerce assesses and determines whether imports are being subsidized, and if so, the amount of countervailing duty it should levy. The countervailing duty levied should equal the subsidy margin, the USITC explains.

    Marking Duties

    • Existence of trade agreements such as a Generalized System of Preferences or the North American Free Trade Agreement in the U.S. may allow products from some countries to qualify for special duty benefits, while other products may incur additional duties depending on the manufacturer or country of origin. A marking duty covers the additional costs required to properly mark goods with the appropriate country-of-origin labeling, as U.S. law dictates that importers must indicate the correct country of origin of goods in a commercial invoice. If not, customs will delay shipment of the merchandise until it verifies the origin of the goods -- the country in which the product was manufactured, grown or produced.

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