HTS code

Related terms

Tariff

A tariff is a tax on imported goods, collected in the US by Customs and Border Protection and set by the product's HTS code and country of origin. Beyond base duty rates, added tariffs such as Section 232 and Section 301 duties can change with little notice.

Landed cost

Landed cost is the total cost of a part delivered to the buyer's dock, including piece price, tooling amortization, packaging, freight, insurance, duties, tariffs, brokerage, and inventory carrying cost. Comparing offshore and domestic quotes on piece price alone understates the cost of the offshore part.

DDP

DDP is Delivered Duty Paid, the Incoterm under which the seller delivers goods to the buyer's named place, cleared for import, with freight, duties, and taxes paid. It puts the most responsibility on the seller and gives the buyer the closest thing to a true landed price.