Tariff and Import Guidance

Tariffs and Import Guidance

What is a Tariff?

A tariff, also known as an import tax, is a duty imposed by a national government, customs territory, or supranational body on the importation of goods. Tariffs impact the cost of international purchases and are critical considerations in procurement planning.

If a supplier indicates that tariffs apply, they must provide appropriate documentation. Departments should require:

  • The country of origin of the product
  • The composition of the goods

This documentation, often referred to as Proof of Origin, establishes that the goods originate from a particular country or region. Acceptable forms of documentation include:

  • Certificate of Origin (CoO)
  • Declaration of Origin
  • Tariff Schedule
  • Bill of Lading

Departments should evaluate the total cost impact of tariffs and be prepared for possible cost increases related to import activities.

When Are Tariffs collected?

Tariffs are collected at the point of entry when imported goods enter a country. Here’s a detailed breakdown of when and how they are collected:

  • When: Immediately upon entry into the country, before goods are released to the importer.
  • Who Collects: Customs authorities (e.g., U.S. Customs and Border Protection in the U.S.).
  • How:
    • The importer (or customs broker on their behalf) files an entry declaration.
    • Customs calculates the tariff based on the tariff classification, value, and quantity of goods.
    • The importer must pay the tariff before the goods are released from customs custody.

Tariff Relief Options

In certain cases, relief from tariffs may be available. Two key options are outlined below. These processes can be complex and may require the support of a licensed customs broker. Approval is not guaranteed.

1. Duty-Free Entry of Scientific Instruments or Apparatus

Certain scientific instruments and apparatus may be eligible for duty-free entry if no equivalent instrument or apparatus of comparable scientific value is being manufactured in the United States.

  • Harmonized Tariff Schedule (HTS) Code: 9810.00.6000. This code specifically covers instruments and apparatus that are not manufactured in the United States and are intended for use by nonprofit institutions.
  • Application Form: International Trade Administration (ITA) Form 338P Applicants must provide detailed justification and documentation. This process can be time-consuming and should be initiated well in advance of the expected import date.
  • Departments must complete form ITA 338P to include the following information.
  • Product
  • Value
  • Origin location(s)
  • Expected arrival date
  • Whether there was an option to source this equipment from an American competitor
  • Why you elected to purchase from an overseas supplier and what are the unique benefits of the overseas supplier
  • Describe the scientific need for this equipment
  • Current contract terms regarding cancellation, deposit, shipping, logistics.
  • Form must be submitted thru FSU’s contract module (TCM) for signature
  • Once approved/signed the department is responsible for mailing via the instructions on the form.

2. Entry for Warehouse (Bonded Warehouse Entry)

To delay the release of goods and associated duties, imported items may be stored in a Customs Border Patrol (CBP) bonded warehouse for up to five years from the date of importation.

Key provisions include:

  • Goods may be re-exported without duty at any time.
  • Goods may be withdrawn for consumption with duty paid at the rate in effect at the time of withdrawal.
  • Goods may be manipulated (e.g., cleaned, sorted, repacked) under CBP supervision, as long as such actions do not constitute manufacturing.
  • Duty is not payable if the goods are destroyed under CBP supervision.

Restrictions: Perishable items, explosives, and prohibited goods may not be warehoused. Some restricted articles may be warehoused but not released. See Section 311 of the Tariff Act (19 U.S.C. 1311) for further details.

 

Florida State University Contracted Customs Brokers

Customs brokers are licensed professionals who ensure compliance with import/export regulations. They assist with documentation, tariff assessment, and customs clearance.

Florida State University departments may utilize the following contracted customs brokers (paid directly by departments):

John S. James Co.

📧 Email: atlimports@johnsjames.com

  • Incoterms (International Commercial Terms) Guide
  • Rate Request Form

Atelier 4 LLC

A specialized art logistics and customs service provider also available for complex imports.

Useful Resources

  • Office of the United States Trade Representative (USTR):
    Presidential Tariff Actions
    • Annex I: Country Tariff Lists
    • Annex II: Products Subject to Tariffs
    • Annex III: Tariff Rates by Subheading
  • Harmonized Tariff Schedule (HTS):
    Visit the HTS Website