| Article I, Section 8 of the Constitution gives | | | | duty rates than Communist countries which carry the |
| Congress the power to lay and collect Taxes, Duties, | | | | highest duty rates.. The U.S. has trade agreements |
| Imposts and Excises. | | | | with some countries that provide for lower duties or |
| Are internet purchases from foreign countries subject | | | | zero duties. Most products entering the U.S. from |
| to Customs duties under the Harmonized Tariff | | | | Canada or Mexico, for example, are duty free if they |
| Schedule of the United States (HTSUS)? | | | | are considered originating under the North American |
| It is easy in today's global market to purchase | | | | Free Trade Agreement (NAFTA). |
| anything online from just about anywhere in the | | | | If the value of internet purchases is less than |
| world. But what happens after the purchase? Are | | | | $200.00, generally the products are administratively |
| purchases subject to Customs duties? Internet | | | | exempt from duty requirements or entry |
| electronic transactions themselves are not subject to | | | | requirements. The government doesn't want to mess |
| tariff duties or taxes, not yet anyway. But the | | | | with anything less than $200.00. Of course, there are |
| products purchased online from foreign countries | | | | exceptions. In the import rules and regulations there |
| surely are. | | | | are exceptions for just about everything. |
| Customs law requires that all imported merchandise | | | | If the value of the internet purchases is less than |
| must clear Customs before they can be released, | | | | $2,000.00 the products may or may not be dutiable |
| and that includes purchases made over the internet. | | | | and can be cleared informally by just presenting an |
| Internet purchases, with some exceptions, have to | | | | invoice and shipping documents to Customs. There |
| be entered, classified, and appraised just like any | | | | are exceptions here to. |
| other goods that are imported into the U.S.. The | | | | If the value of the internet purchases is more than |
| classification of the goods (assigning tariff numbers) | | | | $2,000.00 the products may or may not be dutiable |
| found in the Tariff Schedule determines the applicable | | | | and have to be cleared formally which is a bit more |
| duty rates for particular products. The duty rates | | | | complicated and requires a Customs bond. Yes, there |
| may be free, may be a percentage of the value (ad | | | | are exceptions here to. |
| valorem), may be a specific amount such as $0.25 | | | | Whether internet purchases are subject to tariff |
| each, or a combination of both. | | | | duties and a host of other import requirements |
| The correct duty rates depend on the products | | | | depends on the products themselves, the country of |
| themselves, the country of their manufacture, and | | | | their origin, and their value. Duty rates may also |
| their value. | | | | depend on whether the products are for personal |
| Some products carry higher duty rate than others. | | | | use or for commercial use (for resale). |
| Some products enter the U.S. unconditionally free and | | | | The amount of duties determined under the |
| some are duty free from some countries under trade | | | | Harmonized Tariff Schedule should never be changed |
| programs.. Some products have additional duties | | | | by claiming the products are from one country when |
| (anti-dumping or countervailing) tacked on to the | | | | in fact they are from another, or by understating the |
| regular duties. | | | | value of the products, or by declaring them as one |
| Products from countries (most favorable nations) | | | | thing when they are something else. |
| with which the U.S. normally trades with carry lower | | | | |