Trade Tariffs for Clothing Imports from Peru to the USA

The import of clothing from Peru to the United States is subject to specific trade tariffs under the United States-Peru Trade Promotion Agreement (PTPA). This agreement, which took effect in 2009, governs the trading rules between the two nations. Understanding these tariffs is crucial for importers and businesses involved in international trade.

United States-Peru Trade Promotion Agreement (PTPA)

The United States-Peru Trade Promotion Agreement (PTPA) (or Acuerdo de Promoción Comercial Perú – Estados Unidos in Spanish) is a free trade agreement signed in 2007 and came into force in 2009. This agreement sets the framework for economic, institutional, and intellectual property matters between the United States and Peru. It builds upon previous agreements, including the 1991 Andean Trade Preference Act (ATPA) and the 2002 Andean Trade Promotion and Drug Eradication Act (ATPDEA).

Reduced Tariffs on Textiles and Apparel

Many textile and apparel products are subject to reduced or eliminated tariffs under the PTPA. The specific tariff rates vary based on the type of clothing and its classification under the Harmonized Tariff Schedule (HTS). Generally, the tariff rates can range from 0 to 32%, depending on the product's classification. For example, most apparel items may have a tariff ranging from 0-32, though the exact rate can only be determined by checking the specific HTS code for the product.

Classification under the Harmonized Tariff Schedule (HTS)

The Harmonized Tariff Schedule (HTS) is a standardized system for classifying products based on their characteristics. To determine the exact tariff rate for clothing imports from Peru, it is essential to check the appropriate HTS code. The HTS system helps authorities and importers to apply the correct tariffs and trade regulations.

Current Tariffs and Additional Taxes

According to the Office of Textiles and Apparel (OTEXA), the tariff rates for textiles and apparel in the United States and Peru under the PTPA range from 0 to 16%. However, additional taxes include the municipal promotion tax (IPM) at 2% and the Value-Added Tax (VAT), which is based on the Cost, Insurance, and Freight (CIF) Cost and the import tariff itself.

Key Takeaways

The PTPA governs trading rules between the United States and Peru. Most apparel items may have a tariff ranging from 0-32%. Determine the exact HTS code for the product to determine the exact tariff rate. Additional taxes include IPM at 2% and VAT, which is based on CIF Cost and the import tariff. Consult the latest information from the U.S. Customs and Border Protection or a trade specialist for the most current rates.

Businesses and importers must stay informed about these regulations to ensure compliance and to optimize their operations. Detailed knowledge of the PTPA and the HTS can significantly reduce costs and streamline the import process.