C300 Merchandise Classification and Rates of Duty

Question 1

The Harmonized Tariff Schedule of the United States (HTSUS) contain what 4 things?

Answer 1

• Is based on the International Harmonized System
• Provides the applicable tariff (duty) rates and statistical categories for all merchandise imported into the United States
• Lists any commodity that may be imported into the United States
• Contains unique item numbers for 10,000 specific categories of commodities

Question 2

The HTSUS contains the following major sections:

Answer 2

1. General Rules of Interpretation (GRI)
2. General Notes
3. Sections I through XXII
4. Alphabetical Index

Question 3

How many digits are in a complete HTS number?

Answer 3

10

Question 4

What do the first two digits in the classification represent?

Answer 4

The chapter number

Question 5

What is the purpose of the General Notes in the HTSUS?

Answer 5

Defines terms and provides directions for assessing duty

Question 6

What is the purpose of the last two digits in the classification?

Answer 6

Used to gather trade data

Question 7

What is a Duty?

Answer 7

Taxes charged by the Government on merchandise imported into the country.

Question 8

What are the 4 types of Duty?

Answer 8

• Ad valorem duties
• Specific duties
• Compound duties
• Free of duty rate

Question 9

What are the rules used for finding an item in the index?

Answer 9

What is it called, what is it used for or similar to, and what materials are used

Question 10

What determines the different rates of duty?

Answer 10

Country of origin and country of purchase

Question 11

The duty rates are set by Congress based on what?

Answer 11

International treaties and agreements