FTA Duty Savings: Does Your Product Qualify for Preferential Rates?

The US has free trade agreements with 19 countries. Many importers pay full MFN duty rates when they could pay zero. Here's how to check.

How FTA rates work

When the US signs a free trade agreement with a country, they negotiate reduced duty rates for specific products. These "preferential" rates can be significantly lower than the MFN (Most Favored Nation) rate that applies to non-FTA countries.

Example: Cotton t-shirts (6109.10.00), $100,000 shipment

From China (no FTA): 16.5% MFN + 7.5% Section 301 = 24.0% schedule → $24,000; importers paid 33.5% in July 2026 → $33,500
From Vietnam (no FTA): 16.5% MFN schedule → $16,500; importers paid 26.7% → $26,700
From Mexico (USMCA): Free with USMCA origin → $0; dutiable entries from Mexico paid 19.9%
From Korea (KORUS): Free with KORUS origin → $0; dutiable entries from Korea paid 17.7%

Same product: $0 with FTA origin met, against $33,500 at the rate paid on the China route in July 2026.

Schedule: USITC schedule on 2026-10-03 (base rate plus Section 301 on China from USITC's China Tariffs table; the schedule's special column lists Free for KORUS and USMCA, codes KR and S). Paid: US Census Bureau, July 2026, 6-digit 6109.10, duty over dutiable value on entries that paid Chapter 99 duties (all dutiable entries when none did); duty-free entries are not in it. Past imports, not a quote.

US FTA partner countries

AgreementCountriesYear
USMCACanada, Mexico2020
KORUSSouth Korea2012
AUSFTAAustralia2005
CAFTA-DRCosta Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua2006
Chile FTAChile2004
Colombia TPAColombia2012
Peru TPAPeru2009
Panama TPAPanama2012
US-SingaporeSingapore2004
US-BahrainBahrain2006
US-MoroccoMorocco2006
US-OmanOman2009
US-Japan (Stage 1)Japan2020

Notable absences: China, India, Vietnam, Bangladesh, Indonesia, Thailand. The largest US import sources by volume have no FTA with the US. Products from these countries pay full MFN rates plus any applicable Section 301/232 tariffs.

How to qualify for FTA rates

Having an FTA doesn't automatically mean your product qualifies. You need to meet Rules of Origin: proof that the product was sufficiently produced in the FTA country, not just transshipped through it.

Common rules of origin

Staging baskets

FTA rates don't always start at zero. Many products are "staged": the rate decreases over several years until reaching zero. The staging basket tells you the phase-in schedule:

BasketMeaning
ImmediateZero duty from day one of the FTA
5 YearsRate reduced to zero over 5 equal annual cuts
10 YearsRate reduced over 10 years
Stage 6FTA-specific staging category (check agreement text)
ExcludedProduct excluded from FTA preferences

The FTA data gap nobody talks about

The US government's official FTA rate data (from Trade.gov) only covers HTS chapters 01-61 and 78-86. Chapters 62-77 and 87-97 have no FTA data at all. This affects some of the highest-volume import categories:

This isn't documented anywhere on Trade.gov. Any tool that uses their API without knowing this will show "no FTA rates" for products that absolutely have FTA eligibility, because the data simply isn't in the source.

Our /classify response includes census_duties with a rate provision breakdown from the US Census Bureau for the 6-digit subheading: how much of the last 12 months' imports entered free (RP 10-19), at a special (preferential) rate (RP 64), at the MFN rate (RP 61), or under Chapter 99 additional duties (RP 69), and the duty collected on each. These are historical figures for past imports, not a rate for your shipment and not an eligibility decision.

How to see FTA program usage in our API

Our /v1/classify response returns a Census-derived rate provision breakdown. Within census_duties.breakdown, look at RP 10-19 (entered free) and RP 64 (dutiable at a special rate). RP 10 covers goods free under either the general or the special rate column, so for a code whose MFN rate is already free it says nothing about FTAs. For a code with a real MFN rate, a large free share usually means importers claimed a preference program. Compare import_value_usd across provisions to see that share.

This isn't the same as a per-country preferential rate lookup. For that, the authoritative source is USITC HTS Special column rates and the FTA partner agreement texts. Our API surfaces the program usage signal so you can quickly see whether FTA is a real lever for products under a given code.

Not sure about your HTS code? Try the classifier. Describe your product, get the HTS code with the duty actually collected on past imports (Census Bureau). The breakdown shows MFN-rate entries, Chapter 99 additional duties (Section 301/232), and free or preferential entries in one response.

Sources

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