A rate card lists goods available for import with their corresponding duty rates. Most countries use the Harmonized System, which is organized by chapters. The US uses the Harmonized Tariff Schedule and determines rates through the Harmonized Rate Program. The WCO proposed changes to the system in 2009, which will take effect in 2012.
A rate card is a complete list of goods available for import. List products by type, along with the duty rates that apply to each. Most countries, including the United States, use the Harmonized Commodity Classification and Coding System, or simply the “Harmonized System”. This international system was established by the World Customs Organization (WCO).
The Harmonized System was developed to facilitate trade between countries and almost all countries use this international system. The tariff is organized by “chapters”, which are numbered according to the level of processing that goes into the product. Early chapters list animals, meat, dairy products, and agricultural products, while later chapters include wool, cotton, and wood products. Final chapters include everything from toys to surgical equipment and furniture.
The United States tariff schedule is officially called the Harmonized Tariff Schedule (HTS). The US Customs Service handles the collection of tariffs from trading countries. The Census Bureau, at the United States Department of Commerce, tracks import and export statistics and publishes them for public viewing.
Harmonized Rate Program rates are determined by the President in consultation with Congress. Rates tend to remain relatively stable, with increases based on a given annual rate. Countries are classified as “general” in column 1, which are free trade countries, “special” for countries with a special deal, or “column 2” for countries with limited trade. Tariffs can be as low as 0-3% for countries that have open trade or as high as 70% or more for countries with restricted trade agreements.
In 2009, the WCO proposed significant changes to the Harmonized System. These changes are the result of five years of research and editing to create a more comprehensive system for the modern age. The recommendation, which is expected to take effect in 2012, includes 221 amendments. The amendments add category headings for items such as controlled pesticides and technology, removing obsolete headings for about 40 products that are no longer relevant to modern commerce. In addition, Food Security Amendments were added to modernize food classification and safety alerts in accordance with the Food and Agriculture Organization’s Food Safety Information Action Programme.
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