What is Specific Duty?
A fixed-amount tariff per unit of imported goods (e.g., cents per kilogram), regardless of the goods' value. In the context of U.S. customs and tariff recovery, understanding specific duty is essential for navigating the CAPE refund process and ensuring accurate duty assessment.
Definition
A specific duty is a tariff expressed as a fixed dollar amount per unit of imported goods — for example, $0.05 per kilogram, $2.50 per liter, or $15 per pair. Unlike ad valorem duties (which are percentage-based), specific duties do not change with the value of the goods. This means that high-value goods pay a lower effective rate than low-value goods of the same type. Specific duties are common on agricultural products, beverages, and certain industrial commodities.
How Specific Duty Relates to Tariff Refunds
When specific duties are part of a tariff program eligible for CAPE refund, the overpayment calculation is based on the per-unit rate differential multiplied by the quantity imported, rather than a percentage of customs value. Tariffi handles both ad valorem and specific duty calculations in its ES-003 analysis.
Example
Imported wine faces a specific duty of $0.127 per liter. A shipment of 10,000 liters owes $1,270 in specific duty, regardless of whether the wine is valued at $5 per liter or $50 per liter.
Frequently Asked Questions
- Are most U.S. tariffs specific or ad valorem?
- The majority of HTS codes use ad valorem rates. Specific duties are more common in agricultural chapters and on certain manufactured goods.
- How is the refund calculated on specific duties?
- The refund equals the per-unit rate differential (old rate minus new rate) multiplied by the total quantity imported on qualifying entries.
Related Terms
Legal References
- 19 U.S.C. § 1202 — Harmonized Tariff Schedule
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