Tariff tool helps exporters calculate TPP benefits
With the launch of the Free Trade Agreement (FTA) Tariff Tool in 2011, the U.S. International Trade Administration (ITA) created a free, online mechanism to enable businesses to quickly and easily calculate the tariff benefits on their exports to free trade agreement partner countries.
ITA has now expanded that tool to include the latest tariff information for the 11 countries that recently signed the Trans-Pacific Partnership (TPP).
The tool can be used by anyone, including Canadian importers and exporters, to determine tariff information under the TPP and other free trade agreements signed by the U.S.
For any exporter, especially small-and-medium sized enterprises (SMEs), researching tariff rates that apply to various products can be costly and time consuming. The tariff schedules among the 11 TPP partners account for thousands of pages in the agreement. If an exporter is lucky enough to find out where their specific product is in the tariff schedule, they may still have challenges determining what that tariff will be next year, or in 5 years, or in 10 years. Businesses of all sizes need this information for medium and long term planning.
The FTA Tariff Tool reduces uncertainty and increases clarity, saving businesses time and money while providing critical information to develop international expansion strategies.
The updated tool provides instant TPP tariff information—searchable by keyword or tariff code— via a user-friendly, accessible interface. It incorporates all products (agricultural and non-agricultural goods) classified within all 97 chapters of the Harmonized System, and includes information on product-specific rules of origin to determine the eligibility of the reduce tariff rates under TPP.
The Tariff Tool not only provides information on current tariff lines, but also provides transparency on future tariffs and the year in which those products become duty free. For example, with this tool, an exporter can see that a 17 percent tariff from Vietnam will be reduced to 10.2 percent on year one, to 6.8 percent by year two, and be completely eliminated by year five of TPP going into force. The tool website also contains an instructional video, quick start guide, and user’s manual.