ITA Introduces FTA Tariff Tool

The text of the free trade agreements is complicated.  With so many FTAs and so much text, how is an importer supposed to keep track of all of the benefits these FTAs have to offer?    Check out the International Trade Administration’s new FTA Tariff Tool.   The tool contains a searchable database to determine the tariff treatment of goods covered by U.S FTAs, generates market access reports and creates a snapshot of current tariff and trade trends of the FTAs. The database currently covers industrial goods; however, the ITA is working on agricultural and textile products. The new tool comes with a downloadable video that provides instructions on how to use the various functions.  Let’s take a quick look at two of the tools. 

Select a Tariff

If you want to determine the tariff rate for a specific HTS and FTA, then use the Tariff Search option.  You will enter the country, HTS number and select importing or exporting. Only enter the numbers.    For example, if you want to know the duty rate for importing pressure-reducing valves from Korea, enter 848110 (not 8481.10).  When you click on the details, you will find the base rate of 2% without the FTA and then the staged rates.  Although the Korea FTA has not yet been approved, we find that pressure-reducing valves will be free of duty when the agreement is implemented.   The same valve is currently free under the Oman FTA.  If exporting the valves to Korea, the duty rate without the FTA is 8%; however, the duty rate in the first year of the agreement will be 7.2 % and will eventually reach duty free status in Year 10 of the agreement.  This is a wonderful tool for importers and exporters to look up HTS rates for importing and exporting products to countries subject to FTAs.

FTA Snapshot

If you want to see trade based on imports or exports of a Sector or Chapter with a country subject to one of the FTAs, select FTA Snapshot.  For example, if you wanted to view the trade in U.S. exports of footwear to Australia, you would select exports, then the country of Australia and then the sector, Footwear, Leather and Travel Goods. The next screen shows the average tariff and the value of goods exported.  For footwear, we find original tariff to average 9.5%, a current tariff of 1.0%.  The value of goods exported in 2006 was $6.3 million and the value in 2010 as $7.47 million.    This option is a great tool for researching history and trends for commodities and FTA partners for both imports and exports.  

Click HERE to start using this fantastic new tool.