Freight Tariffs

Nothing is free in life and the same could be said about international freight shipping. The cost of ocean vessel transportation and warehousing could certainly factor in your ocean cargo rate. But another expense that you might be paying for could be in the form of a tariff. In its simplest form, a tariff is a tax for imports and exports. As you can expect, tariffs play a major role in international trade. Some nations impose certain tariffs in order to discourage trade to another nation or for a certain commodity. A country might also use the money from the tariff as additional income for the country. A free trade agreement can limit the tariff. Some countries set up certain free trade agreements to promote trade with a particular country.

To prevent abuse of tariffs, we have the World Trade Organization (WTO). They monitor international trade and tariffs. The United States also has their own tariff system called the Harmonized Tariff Schedule for the United States (HTSUS). This system will decide the tariffs for all United States imports. And the tariff formula for the HTSUS is based on the Harmonized Commodity Coding and Classification System from the World Customs Organization. If you have ever seen the HTSUS, you would notice that there are different tariffs listed for different commodities. If you are concerned about the tariffs for your ocean freight cargo, speak to a logistics provider who can supply you with all of the information that you will need for your shipment.