The duty rate applied to an imported product depends on two primary factors: its HTS classification and its country of origin. While the classification is determined by the product itself, the country of origin is a variable that importers can influence through sourcing decisions. The same product imported under the same HTS code can face dramatically different duty rates depending on where it is manufactured. A product from a country with an FTA with the US might enter duty-free, while the same product from China might face a combination of MFN duty, Section 301 tariff, and AD/CVD duties totaling over 200%.
Camtom's multi-country tariff comparison tool allows you to enter a product description or HTS code and instantly see the total applicable duty rate for importing that product from any country in the world into the United States. The tool accounts for MFN duty rates, Column 2 rates for non-NTR countries, preferential rates under FTAs (USMCA, CAFTA-DR, US-Chile FTA, etc.), GSP eligibility, Section 301 tariffs, Section 232 tariffs on steel and aluminum, and active AD/CVD orders. The result is a comprehensive, apples-to-apples comparison that shows the true landed duty cost by country of origin.
For a steel fastener (HTS 7318): China = 0% MFN + 25% Section 301 + 25% Section 232 + 145% AD = 195% total. Mexico under USMCA = 0% total. India = 0% MFN + potential 2.4% AD = 2.4% total. The sourcing decision has a 193 percentage point duty impact.
While duty rates are a critical factor, they are not the only cost consideration in sourcing decisions. The multi-country comparison tool provides the duty data point, but smart sourcing decisions also account for product quality and manufacturing capability, unit production costs, freight and logistics costs from the source country to the US, lead times and supply chain reliability, compliance requirements and risks (UFLPA for China, for example), currency stability, and intellectual property protection. Camtom's landed cost calculator can incorporate freight estimates alongside duty calculations to provide a more complete picture of total landed costs by country.
Companies looking to reduce reliance on a single source country (often China) use the comparison tool to identify alternative sourcing countries with favorable duty treatment. By comparing duty rates across all potential manufacturing locations, procurement teams can build a shortlist of countries that offer both competitive production costs and favorable tariff treatment. This data-driven approach to diversification avoids the common mistake of shifting to a country with lower production costs but higher duties.
When launching a new product line, the sourcing decision often happens before the product is even manufactured. Using the tariff comparison tool during the design and sourcing phase allows companies to factor duty costs into the sourcing decision from the beginning, rather than discovering unfavorable duty rates after supplier contracts are already signed. This proactive approach can save significant money over the product's lifecycle.
The multi-country tariff comparison tool is available to all Camtom platform users. Start by entering your highest-volume products and comparing duty rates across your current and potential sourcing countries. The results may reveal immediate opportunities to reduce duty costs through sourcing shifts. For a more comprehensive analysis, contact Camtom's trade advisory team for a sourcing optimization consultation that combines tariff data with production cost analysis and supply chain modeling.
Camtom Team
Editorial Team
Descubre por qué más de 100 agencias ya operan con nosotros.