In the HTSUS, how are duty rates generally structured?

In the Harmonized Tariff Schedule of the United States (HTSUS), duty rates are structured to vary according to the degree of manufacture of imported goods. This means that the tariff classification and the associated duty can depend on how much transformation the product has undergone in its production process. Goods that are fully manufactured or processed typically receive different duty rates compared to raw or semi-processed materials. This structure encourages the importation of higher-value, fully manufactured products while potentially imposing higher tariffs on less processed items, thus reflecting the economic policy goals of promoting domestic manufacturing and protecting local industries.

Variations in duty rates based on the degree of manufacture allow for a nuanced approach to international trade, incentivizing certain types of trade that align with broader economic strategies, such as encouraging the development of domestic manufacturing capabilities.