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GLOSSARY

Tariff Stacking

An informal customs industry term used to describe the cumulative application of multiple import duties and/or tariffs on a single product.
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What is Tariff Stacking?

The term tariff stacking has come to refer to the practice of applying multiple import duties and/or tariffs on incoming products. 

The term makes no distinction between whether a tariff may have a fixed rate or an ad valorem rate. It’s simply used to refer to when more than one is applied at a time. Therefore, this term could be used to refer to some of the following combinations:

  • HTS code designated duties combined with AD/CVDs 
  • HTS code designated duties combined with tariffs applied by Section 301 or Section 232 orders
  • HTS code designated duties combined with flat rates or reciprocal tariffs specific to the country of origin

The majority of HTS code designated duties are calculated based on value (ad valorem). The introduction of baseline reciprocal tariffs on nearly all U.S. trading partners is likely to make this the most common tariff stacking situation. Due to the new nature of such practices, it is highly recommended that all importers double check applicable duties and tariffs before import of any product. 

See Also: Compound Tariff

Related Articles:

A Guide to U.S. Import Taxes: Duties, Tariffs, and Other Fees

What Are Reciprocal Tariffs? Definition and Purpose

How Do I Find My HTS Code?: Determining Harmonized Tariff Codes

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