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Tariffs: Breaking Down Tariffs, Duties, Taxes and Fees

tariffs customs border patrol

What are tariffs? A tariff is a duty placed on imported goods. There are several types of tariffs and fees that are charged by Customs and Border Protection.  The purpose of tariffs is to protect the domestic producers, manufacturers and industries in the U.S. and generate revenue for the government.

What types of tariffs are collected?

There are several ways a tariff, that is to be collected, can be raised, lowered or completely avoided depending on the situation.

Harbor Maintenance Fee are paid on shipments that come via ocean.  It is charged at a rate of .125%.

Other Fees

Other fees can include: Mango, Avocado, Cotton, Beef, Tea, Pork, Honey, Pecan, Raspberry, Sugar, Potato, Mushroom, Watermelon, and Blueberry

Antidumping – This is when an overseas industry undercuts the price of a product.  It is impossible to for the U.S. counterpart to compete at that rate structure.  Once DOC determines that there is a valid reason to investigate.  They will determine how much lower the industry are selling their wares they will levy additional “Antidumping Duties”.  The overseas manufacturer can plead their case to the DOC to get lower or completely erase the additional duty.

Countervailing – This is when a foreign industry is subsidized by a foreign government.   The DOC will make a determination and add additional duty to protect the U.S. industry.

The case will be closed once the Department of Commerce is satisfied that the overseas industry is compliant. This can take several years.

Avoidance or Delay of Duty Payments



Recuperation of Duties

Retaliatory Tariffs

Currently there is a lot of talk in the news about Retaliatory Tariffs.  Our governments have levied, on 4 different lists, additional tariffs, above what is currently being paid, on goods from China.  Then in turn, China is also leveling additional tariffs on items from the U.S to China.  They will negotiate and try to reach an agreement to either lower or end the additional tariffs.