<P> Rates of tax on transaction values vary by country of origin . Goods must be individually labeled to indicate country of origin, with exceptions for specific types of goods . Rules of origin are used to determine the country of origin . Goods are considered to originate in the country with the highest rate of duties for the particular goods unless the goods meet certain minimum content requirements . These minimum content requirements may vary under certain trade agreements or special arrangements . Reduced rates of duty apply under these agreements and arrangements for certain classes or subclasses of goods in certain circumstances . Extensive modifications to normal duties and classifications apply to goods originating in Canada or Mexico under the North American Free Trade Agreement . </P> <P> All goods that are not exempt are subject to duty computed according to the Harmonized Tariff Schedule for the United States . The Harmonized Tariff Schedule provides the applicable tariff rates and statistical categories for all merchandise imported into the United States . This lengthy schedule provides rates of duty for each class of goods . Most goods are classified based on the nature of the goods, though some classifications are based on use . </P> <P> Customs duty rates may be expressed as a percentage of value or dollars and cents per unit . Rates based on value vary from zero to 20% in the 2011 schedule . Rates may be based on relevant units for the particular type of goods (per ton, per kilogram, per square meter, etc .). Some duties are based in part on value and in part on quantity . The United States applies a Customs tariff that is among the lowest in the world: 3% on average . </P> <P> Where goods subject to different rates of duty are commingled, the entire shipment may be taxed at the highest applicable duty rate . </P>

Imports that most countries impose customs duties on