Taxes and Tariff Codes

Taxes

The shipment will be subject to duty and possibly tax (e.g., VAT) on entering the destination country. Some tariff codes have a 0% rate, and many countries allow duty-free importation for temporary imports. Research and estimate duty and VAT if it's a concern For temporary exports, get a carnet, plan on posting a temporary import bond, or plan to drawback the import duty when the item is returned.

Tariff Codes

The US has two systems of 10-digit tariff codes, Harmonized Tariff Schedule (HTS) and Schedule B. Both are based on the international Harmonized System, which provides the first 4 or 6 digits. Although the claim is that "There is a Schedule B number for every physical product, from paperclips to airplanes.", and there are about 17,000 entries, at times, particularly when dealing with low-volume research items, we seem to have items not yet envisioned in the tariff codes.

The HTS is always used for import into the U.S.  It can also usually be used for exports from the U.S., supplanting the earlier Schedule B.  HTS and Schedule B are similar but not always the same -- the Census Bureau has a list of HTS numbers than cannot be used for exportMore information on Schedule B and Harmonized System.

Search engines are limited, it may be more reliable to go directly to the HTS (alternate version). Twenty-two 22 sections branch into 99 chapter, like Section I:

Tariff Codes Section I

Section I

Live animals; animal products

Chapter 1

Live animals

Chapter 2

Meat and edible meat offal

Chapter 3

Fish and crustaceans, molluscs and other aquatic invertebrates

Chapter 4

Products of animal origin, not elsewhere specified or included

Chapter 5

Dairy produce; birds eggs; natural honey; edible products of animal origin, not elsewhere specified or included.

Each of these in turn subdivides into headings, subheadings, and statistical suffixes:

Tariff Code Subheadings

Heading/Subheading

Stat. Suffix

Article Description

0101

Live horses, asses, mules and hinnies

0101

   Horses

0101.21.00

Purebred breeding animals

0101.21.00

10

  Males

0101.21.00

20

  Females

0101.29.00

      Other

0101.29.00

10

 Imported for immediate slaughter

0101.29.00

90

      Other

0101.30.00

00

      Asses

0101.90

     Other

0101.90.30

00

   Imported for immediate slaughter

0101.90.40

00

   Other

Finding the most appropriate HTS is a matter of working through the increasing specificity from heading to subheading to statistical suffix for the closest match.

The HTS also has appendices for chemicals, pharmaceuticals, and intermediate chemicals.

Need help?

Contact the MIT Export Control Compliance Team at exportcontrolhelp@mit.edu, or by phone at 617-253-2762 (Janet Johnston).