International Trade - Theory and Policy, 2010a

P, P+ CAFTA-DR FTA
PE
MA
OM
R
SG
U.S.-Peru FTA
U.S.-Morocco FTA
U.S.-Oman FTA
U.S.-Caribbean Trade Partnership Act
U.S.-Singapore FTA
The tariff schedule in Table 1.3 "Selected Tariffs in the United States, 2009" displays four columns. The first
column gives a brief description of the product. The second column shows the product classification
number. The first two numbers refer to the chapter, the most general product specification. For example,
08 refers to chapter 8, “Edible fruit and nuts; peel of citrus fruit or melons.” The product classification
becomes more specific for each digit to the right. Thus 0805 refers more specifically to “Citrus fruit, fresh
or dried.” The code 0805 40 refers to “Grapefruit,” and 0805 40 40 refers to “Grapefruit entering between
August 1 and September 30.” This classification system is harmonized among about two hundred
countries up to the first six digits and is overseen by the World Customs Organization.
The third column displays the “General Rate of Duty” for that particular product. This is the tariff that the
United States applies to all countries with most-favored nation (MFN) status, or as it is now referred to in
the United States, “normal trade relations” (NTR). The status was renamed NTR to provide a more
accurate description of the term. One provision in the U.S. GATT/WTO agreements is that the United
States promises to provide every WTO member country with MFN status. As a matter of policy, the
United States also typically grants most non-WTO countries the same status. For example, as of 2009,
Russia was not a member of the WTO, but the United States applied its NTR tariff rates to Russian
imports.
The final column lists special rates of duty that apply to select countries under special circumstances. For
each product, you will see a tariff rate followed by a list of symbols in parentheses. The symbols indicate
the trade act or free trade agreement that provides special tariff treatment to those countries. A complete
list of these is shown inTable 1.2 "Special Tariff Classifications in the United States". Symbols that include a
“+” or “∗” generally refer to special exceptions that apply for some countries with that product.
Saylor URL: http://www.saylor.org/books
Saylor.org
53