How is "worth of goods" calculated with reference to tariffs?

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In summary, there has been recent news about tariffs being placed on a certain "worth of goods" and there is confusion on how this worth is calculated. It is unclear if the worth is determined by the total value of goods imported in a year, sales over a shorter period of time, or simply the price of a ton or jar of goods. However, it is known that the duty is based on the price paid for the goods being imported. Additionally, the US is actually a net exporter of pickles with a trade surplus of $2.3M. When attempting to quantify the scope of new tariffs, it is done in the same way by looking at the total value of goods being imported per year.
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Stephen Tashi
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Lately there are many news stories about a tariff being put on a certain "worth of goods". How is "worth of goods" calculated? For example if the tariff was put on , say, pickles, would the "worth" of pickles be computed as the total value of pickles imported in a year before the tariff? Or would it be calculated based on sales over a shorter time period? Or would it simply be the price of a ton of pickles - or one jar of pickles?
 
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When you bought the pickles you are importing, you paid a certain price. The duty is based on that price.
 
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And who'd have thunk it, but the US is a net exporter of pickles, with a trade surplus of $2.3M.
 
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Vanadium 50 said:
When you bought the pickles you are importing, you paid a certain price. The duty is based on that price.

My question isn't about how tariffs are assessed on goods. The question is about attempts to quantify the scope of new tariffs. When a news story says (new) tariffs were imposed on "75 billion dollars worth of goods", I think it's attempting to quantify the scope of tariffs in the future, not say that tariffs were imposed retroactively on past transactions.
 
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That's done the same way. The US imports $60M worth of pickles per year. This is the sum of all the invoices from people who bought foreign-produced pickles. If a pickle tariff is passed, it applies to $60M of pickles annually.
 
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Related to How is "worth of goods" calculated with reference to tariffs?

1. How is the "worth of goods" determined for tariff calculation?

The worth of goods is typically determined by the value of the goods at the time and place of importation. This can include the cost of production, transportation, insurance, and any other related expenses. The value may also be based on the transaction value, meaning the price actually paid or payable for the goods.

2. What is the role of customs officials in determining the worth of goods for tariff calculation?

Customs officials play a crucial role in determining the worth of goods for tariff calculation. They are responsible for inspecting and assessing the value of imported goods and verifying the accuracy of the declared value. They may also use their own database and reference materials to determine the appropriate value for tariff calculation.

3. Are there any exceptions to the methods used for determining the worth of goods for tariff calculation?

Yes, there are exceptions to the methods used for determining the worth of goods for tariff calculation. For example, if the value of the goods cannot be determined using the transaction value method, other methods such as the deductive value or computed value methods may be used. These methods involve deducting certain costs from the selling price or using a predetermined formula to determine the value.

4. How do tariffs affect the worth of goods and their final cost to the consumer?

Tariffs can significantly impact the worth of goods and their final cost to the consumer. When a tariff is imposed on imported goods, it increases the price of the goods, making them more expensive for the consumer. The worth of goods for tariff calculation includes the cost of the tariff, which is ultimately passed on to the consumer in the form of higher prices.

5. Are there any specific regulations or guidelines for determining the worth of goods for tariff calculation?

Yes, there are specific regulations and guidelines for determining the worth of goods for tariff calculation. These can vary depending on the country and the type of goods being imported. In the United States, the Customs and Border Protection (CBP) has specific regulations and guidelines for determining the value of imported goods for tariff calculation, which are outlined in the Harmonized Tariff Schedule of the United States (HTSUS).

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