Analysis
HTS 2402.10.60 covers each valued 15¢ or over but less than 23¢ under heading 2402 (cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes).
The general rate is 57¢/kg + 1.4%, a specific or compound duty rather than a simple percentage, so the effective burden depends on the unit value of the goods: cheap goods pay proportionally more than expensive ones. Importers usually convert it to an ad valorem equivalent to compare it with other lines.
Goods that qualify under GSP, the Australia FTA, the Bahrain FTA, the Chile FTA, the Colombia TPA, and 11 others can enter duty-free instead of paying 57¢/kg + 1.4%. It is also eligible under GSP, the developing-country programme, which Congress has to renew; check whether GSP is in force on the entry date.
The other lines in the same group are 2402.10.30 (each valued less than 15¢, $1.89/kg + 4.7%) and 2402.10.80 (each valued 23¢ or over, 57¢/kg + 1.4%).
Census statistics map these goods to NAICS 312230 (Tobacco Manufacturing), an industry of 125 US establishments employing 11,362 people, the industry a domestic producer of these goods reports under.
Neighbouring lines
| Line | Description | General rate |
|---|---|---|
| 2402.10.30 | Each valued less than 15¢ | $1.89/kg + 4.7% |
| 2402.10.80 | Each valued 23¢ or over | 57¢/kg + 1.4% |