Tariffs and regulations
Tariffs and duty rates are constantly revised and are subject to change without notice.
Austrade strongly recommends you reconfirm these prior to selling to the USA.
Comprehensive information on US tariffs can be obtained from the website of the US International Trade Commission.
For further information please see the US Customs and Border Protection website.
Tariffs and non-tariff barriers
Tariff
US tariffs are not unusually high by world standards. The US Customs Service and a number of Government agencies regulate goods imported to the USA. Non-compliance may result in delays, extra costs, litigation and even prohibition.
Comprehensive information on US tariffs can be obtained from the website of the US International Trade Commission.
The rate of duty customs assesses on a particular commodity imported is not binding for future shipments of the same or similar merchandise. USA customs has a binding ruling program whereby importers can request a written ruling as to the proper classification, and applicable rates of duty.
Requests for tariff classification rulings should be addressed to:
US Customs and Border Protection
International callers: (703) 526 4200
Director, National Commodity Specialist Division
US Customs and Border Protection
Attn: CIE/Ruling Request
One Penn Plaza-10th Floor
New York, NY 10119
or to any service port office of CBP
Customs brokers are licensed by the US Department of the Treasury and assess tariff classification, quota compliance, and anticipation of difficulties in the entry of products you export to the USA. Austrade's USA team can help you find a customs broker to suit your exporting needs.
Import regulations can and do change without notice. Australian exporters to the USA are advised to keep in contact with customs related information through the US Customs and Border Protection website which provides comprehensive information. The US Customs and Border Patrol provide several publications on importing that are valuable reading for new exporters to this market.
Tariff classification
All goods that enter the USA are categorised according to the Harmonised Tariff Schedule. Classification determines how much duty will be collected. It is a complicated process requiring the application of the General Rules of Interpretation: the section, chapter and subheading notes, and the explanatory notes. The importer is responsible for properly classifying merchandise before entry.
If you are unsure how to properly classify an item, a request for a binding rule can be made to US Customs. The rulings will be binding at all ports of entry unless revoked by the Headquarters' Office of Regulations and Rulings. The Customs Service will not issue binding rulings in response to oral requests. Oral inquiries may be made to customs offices regarding existing binding rulings that might cover your importation.
Non-tariff barriers
The US Food and Drug Administration (FDA) Regulations covering food (human and animals) exports to the USA have changed. New Bioterrorism Act regulations came into effective on 12 December 2003. Food exporters that do not comply with these regulations will have their goods refused for entry to the United States. Austrade recommends that exporters access the following links and follow the necessary procedures to meet export compliance rules under these new regulations.
The US Food and Drug Administration (FDA) have published the interim final rules for Facility Registration and Prior Notice to Import.
Please note the following exemption: Truck terminals and other stationary facilities that serve merely to assist transportation vehicles in the process of transporting food are not required to be registered with FDA. For the purpose of the registration Interim Final Rule, truck terminals and freight forwarders that are part of the transportation network and have possession, custody, or control of food for the sole purpose of facilitating its transport are not required to be registered with FDA.
FDA acknowledges that this response is not completely consistent with certain prior guidance.
The Department of Agriculture, Fisheries and Forestry has reviewed the two interim final rules, and provides the following supplementary information. Please note, although the information provided below should assist most people to comply with the Bioterrorism Act regulations, it is recommended that individual exporters review the two interim final rules to determine how the rules will affect their individual trade, or potential trade with the USA. Please note, these rules apply to food (human and animal) exported to the USA including all its States and Territories.
Further information on the two interim final rules, including registration form and instructions for completing the form, is available. The two FDA fact sheets on these interim rules provide information on the requirements of the two rules.
The following comments are in addition to the detail provided in the FDA fact sheets. Fact sheets can be found at:
New information about Bioterrorism regulations on the FDA website is also available:
The Consumer Product Safety Improvement Act (CPSIA)
Since the passage of the Consumer Product Safety Improvement Act (CPSIA) on August 14, 2008, much effort has been dedicated to interpreting and understanding the law’s complex requirements. New certification requirements, phthalate and lead limits, mandatory third-party testing requirements, newly prohibited acts and many other provisions of the law all provoke significant questions and present potential pitfalls to manufacturers, importers private labellers, distributors and retailers of consumer products. An 8-fold increase in maximum civil fines coupled with CPSC & US Customs’ authority to seize and destroy imports not in compliance with this new law raises the stakes considerably for companies. The new law also empowers all 50 state attorneys general to seek enforcement of many federal product safety laws and standards.
It is important to recognise that information regarding the CPSIA continues to be updated by the CPSC on an ongoing basis and is posted on their website:www.cpsc.gov/about/cpsia/cpsia.html.
Product liability
Product liability is an issue that can cause concern for business operations in or exporting to the United States. Exporters need to assess the risks associated with their product and industry and determine the measures necessary to limit exposure to product liability lawsuits. Advice from lawyers and specialists in product liability is recommended.
Import restrictions
A license or permit from the responsible agency may be necessary to import:
- alcoholic beverages
- animal and animal products
- certain drugs (Note: narcotic drugs are generally prohibited)
- firearms and ammunition
- fruits, nuts
- meat and meat products
- milk, dairy and cheese products
- plants and plant products
- poultry and poultry products
- petroleum and petroleum products
- vegetables
There are also restrictions on the importation of certain trademarked and copyrighted articles. For further information see Customs Publication No. 549 US Customs and Protection of Intellectual Property Rights.
The following items must comply with applicable regulations of other US Government agencies:
- art materials
- cultural property
- hazardous/toxic/flammable materials
- household appliances
- some electronic products
- toys and children's articles
Today, an increasing number of goods and products such as textiles, clothing, automobiles, boats, radios, CD players, television and medical devices, are subject to special standards, declarations, certification, marking or labeling requirements. Other merchandise must be examined for fitness of use, freedom from contamination, or may be subject to quotas on the quantity imported.
All these requirements must be met before the merchandise may be released from Customs.
Many categories of goods are subject to quota or visa restrictions. The US Customs Service has a brochure on Import Quotas for a complete list.
There are no foreign exchange restrictions on payments for imports and only limited import licensing. However, there are special technical requirements concerning issues such as safety and quality that apply to certain goods, such as motor vehicles and electrical equipment.
Product certification, labelling and packaging
The Federal Trade Commission, the Food and Drug Administration (FDA), and the Department of Agriculture all have guidelines that must be met depending on the product.
- All imported products are inspected by US Customs to ensure that appropriate packing and labelling requirements are met.
- Goods subject to different rates of duties should be packed separately unless they can be easily identified and separately both physically and on the import documents.
- Packages containing mixed goods may otherwise be assessed for total duty at the highest rate applicable to any of the contents.
- Strict regulations govern both the distribution in commerce and labelling of any packaged consumer commodity, including the manner of specifying and indicating net contents.
- Food items must list all ingredients in order from most to least prevalent and must list nutritional information.
- FDA does not have a pre-market approval system for cosmetic products or ingredients, with the important exception of colour additives. Drug ingredients, however, are subject to pre-market FDA approval.
- FDA maintains the Voluntary Cosmetic Registration Program (VCRP) for cosmetic establishments and formulations. As its name indicates, this program is voluntary, but it is highly recommended.
- Textiles and apparel must list country of origin, fibre content, and fabric care instructions. The US Federal Trade Commission has produced a guide to help companies comply with federal labelling requirements for textiles and wool products. This guide is essential reading for companies involved with exporting textiles and clothing to the USA.
- Apparel items are subject to labelling and flammability requirements and articles containing fur or wool have additional labelling requirements.
- Samples of labels for some cosmetics, foodstuffs and pharmaceuticals should be submitted to the US Food and Drug Administration for approval, before shipments are made.
- US customs laws require each imported article produced abroad to be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article permits, with the English name of the country of origin, to indicate to the ultimate purchaser in the USA the name of the country in which the article was manufactured or produced. Articles which are otherwise specifically exempted form individual marking are an exemption to this rule.
Most US retailers require Universal Product Codes (UPC) bar codes, rather than the bar coding system used in Australia called EAN International. If you are exporting to the USA, you are advised to join EAN Australia and then apply for a UPC.
Documentary requirements
The US Customs authorities are very precise about import documentation being provided completely and accurately. Any defalcation can cause major problems, risking delays or seizure of goods. The services of a competent customs broker is therefore strongly recommended.
Documentation requirements can be extensive and may include commercial invoice, certificate of origin, bill of lading, packaging list and special certificates. The US Customs Department suggests that to speed customs clearance, the import community and the Customs Service have created the Customs Automated Commercial System (ACS), which electronically receives and processes entry documentation and provides cargo disposition information. Cargo carriers, customs brokers, and importers may use the system, which reduces clearance time from day to hours or even minutes. Persons entering into the importing trade who intend to file their own entry documentation with customs are encouraged to explore this method of transacting business.
The US Customs Service suggests the following approach for faster customs clearance:
- Include all information required on your customs invoice.
- Prepare your invoices carefully. Make sure that your invoices contain the information that would be shown on a well-prepared packing list. Type them clearly and allow sufficient spaces between lines. Keep the data within each column.
- Mark and number each package so that it can be identified with the corresponding marks and numbers appearing on your invoice.
- Show a detailed description on your invoice of each item of merchandise contained in each individual package.
- Mark your goods legibly and conspicuously with the country of origin unless they are specifically exempted from country-of-origin marking requirements, and with such other marking as is required by the marking laws of the USA.
- Comply with such provisions of any special laws of the USA that may apply to your goods, such as laws relating to food, drugs, cosmetics, alcoholic beverages, radioactive materials and others.
- Observe the instructions closely with respect to invoicing, packaging, marking, labeling, etc. sent to you by your customer in the USA.
- Establish sound security procedures at your facility and while transporting your goods for shipment.
- Consider shipping on a carrier participating in the Automated Manifest System.
- If you use a licensed customs broker for your transaction, consider using a firm that participates in the Automated Broker InterfacPro-forma invoice.
Public health requirements
The US Department of Agriculture (USDA), Animal and Plant Health Inspection Service (APHIS), Veterinary Services (VS) regulates the importation of animal and animal-derived materials.
All meat and meat products must be processed in establishments approved customs and must be covered by an appropriate certificate.
Imported livestock, including cattle, swine, horses and sheep and goat - as well as semen or embryos from these species - must be accompanied by a health certificate issued by an official of the exporting country. Similar requirements apply to poultry - including chickens, geese, ducks, pigeons and a number of other species.
Generally, a USDA veterinary permit is needed for materials derived from animals or exposed to animal-source materials. Materials which require a permit include:
- animal tissues
- blood
- cells or cell lines of livestock or poultry origin
- RNA/DNA extracts
- hormones
- enzymes
- monoclonal antibodies for IN VIVO uses in non-human species
- certain polyclonal antibodies
- antisera
- bulk shipments of test kit reagents
- microorganisms including bacteria, viruses, protozoa and fungi
Health certificates indicating inspection and treatment are required for bees, live or dead, related products and beekeeping equipment.
Plants and plant products (including fruit and vegetables) are strictly controlled. Some are prohibited and others require permits from the USDA. Imports of these items must be covered by an appropriate certificate issued by the approved authority in the country of origin. In addition to possible inspection and disinfection, fruit and vegetables may be required to undergo prescribed treatments for fruit flies or other harmful insects as a condition of entry, or to meet other special conditions.
Importation of milk and dairy products is subject to stringent regulations requiring import permits, licences and adherence to quotas and must comply with requirements of the USDA, APHIS, and VS. Livestock disease prevention requirements are necessary in addition to the requirements of the FDA.
Foods, cosmetics and pharmaceuticals are subject to regulations governing standards, composition, use of colouring matters, labelling, printing and claims of efficacy.
Federal law requires all packaged foodstuffs to list ingredients on the label. Information concerning the nutrition value of the contents is also required.
Weights and measures
US weights and measures system in the US imperial measurements: inch, foot, mile; ounce, pound; 128 fluid ounces per US gallon. The short tonne of 2000 lb is usually used (1 cwt =100 lb.). If used in documents etc., the term tonne should be defined.