HTS Column 2 duty rates are the highest tariffs the United States charges on imported goods, and they apply only to products from the four countries that lack Normal Trade Relations status: Cuba, North Korea, Russia, and Belarus.1U.S. Customs and Border Protection. Column 1 / Column 2 / MFN / NTR – Countries That Does Business With the United States A product that enters duty-free from most trading partners can carry a 20%, 50%, or even 80% duty under Column 2. If any part of your supply chain touches one of these four countries, the classification you land on can decide whether the shipment is profitable at all.
The Four Countries on the Column 2 List
Cuba and North Korea have sat in Column 2 for decades, alongside broad economic sanctions that reach well beyond tariffs. Russia and Belarus joined in April 2022, when Congress passed the Suspending Normal Trade Relations with Russia and Belarus Act. The law stripped both countries of NTR status the day after enactment and gave the President authority to raise rates on their goods even above standard Column 2 levels.2Congress.gov. Suspending Normal Trade Relations With Russia and Belarus Act3GovInfo. Public Law 117-110 – Suspending Normal Trade Relations With Russia and Belarus Act
The list is not fixed. Congress can revoke NTR status by statute at any time, and the President has authority to suspend it. Either move shifts a country’s products to Column 2 immediately. Going the other direction is slower and needs legislation. If you import goods that could originate from a country whose trade status is politically uncertain, watch CBP announcements. Status can change faster than a sourcing plan.
Why the Rates Are So High
Column 2 rates trace back to the Tariff Act of 1930, better known as Smoot-Hawley, which set high protective tariffs across the board during the Great Depression.4Office of the Law Revision Counsel. 19 USC 1202 – Harmonized Tariff Schedule Over the following decades, the United States negotiated those rates down for most countries through the GATT and later the WTO. Those reduced rates became Column 1. The original rates that were never negotiated down became Column 2.
That history is why Column 2 works as an economic pressure tool. Congress doesn’t have to draft a new tariff schedule to penalize a country. It revokes NTR status and the old, high rates snap back into place.
How to Look Up Your Column 2 Rate
The official source is the Harmonized Tariff Schedule, published online by the U.S. International Trade Commission at hts.usitc.gov.5United States International Trade Commission. Harmonized Tariff Schedule Find the 8-digit subheading that matches your product. The HTS is hierarchical: 4-digit headings cover broad categories, 6-digit subheadings match the international system used worldwide, and the 8-digit level is where U.S. duty rates are actually set. The 10-digit numbers you’ll also see are statistical suffixes for reporting, not rate-setting.6United States International Trade Commission. Frequently Asked Questions About Tariff Classification
Once you have the right subheading, look under “Rates of Duty.” Column 1 is split between “General” (the NTR rate) and “Special” (preferential rates under free trade agreements). Column 2 is a single figure on the far right. Read across from your product line to that cell. Classification must follow the General and Additional U.S. Rules of Interpretation, working from the 4-digit heading down to more specific provisions.7United States International Trade Commission. About Harmonized Tariff Schedule
How the Duty Is Calculated
Column 2 uses the same three rate structures as the rest of the HTS. The rates themselves are just much larger.
- Ad valorem: a percentage of declared value. Equipment valued at $100,000 at a 35% rate owes $35,000.
- Specific: a fixed dollar amount per unit, such as cents per kilogram. At $0.50 per kilogram for 10,000 kilograms, the duty is $5,000 regardless of market value.
- Compound: both together, for example 10% of value plus $1.20 per unit.
The tariff isn’t the only line item. CBP also charges a Merchandise Processing Fee on most formal entries. For fiscal year 2026, the MPF is 0.3464% of value, with a minimum of $33.58 and a maximum of $651.50 per entry.8Federal Register. Customs User Fees To Be Adjusted for Inflation in Fiscal Year 2026 On a high-duty Column 2 shipment, the MPF is small next to the tariff, but it still needs to be in the budget.
Country-of-origin marking adds one more risk. Federal law requires every imported article or its container to be legibly and permanently marked with the country of origin in English. If goods arrive unmarked and the issue isn’t fixed before liquidation, CBP assesses an additional 10% ad valorem duty on top of everything else.9Office of the Law Revision Counsel. 19 USC 1304 – Marking of Imported Articles and Containers On goods that are already carrying steep rates, that extra 10% hurts.
Country of Origin and Substantial Transformation
This is where most Column 2 questions actually get decided. If raw materials from a Column 2 country are shipped to a third country for manufacturing, the finished product might not carry Column 2 rates. The test is whether a “substantial transformation” occurred: did the processing create a new article with a different name, character, or use?10U.S. Customs and Border Protection. CROSS Ruling H289712
Minor assembly or repackaging doesn’t count. CBP looks at whether the essential identity of the original material survived processing. Russian steel melted down and recast into automotive parts in a third country likely qualifies. Russian components simply bolted together somewhere else probably doesn’t. CBP publishes binding rulings on these questions, and importers can request advance rulings for their own supply chains before goods ship. Guessing wrong means paying Column 2 rates you thought you had engineered around, plus possible penalties.
Exemptions Under Chapter 98
Some goods enter duty-free regardless of origin, including from Column 2 countries, under Chapter 98 of the HTS.11United States International Trade Commission. Harmonized Tariff Schedule – Chapter 98 The main categories are:
- American-made products that were exported and returned without alteration or improvement in value.
- Articles temporarily exported for exhibition, experimentation, or professional use and then brought back.
- Household goods, professional tools, and personal belongings of returning residents, nonresidents, and U.S. personnel returning from extended duty abroad.
- Articles imported for federal agencies, including emergency military and strategic materials.
- Baggage, effects, and office supplies for foreign embassy personnel and international organization staff on duty in the United States.
- Articles for religious institutions, public libraries, and nonprofit educational or scientific organizations, including books, scientific instruments, and specimens.
- Commercial samples valued under $1 or marked as unsuitable for sale, used for soliciting orders.
Penalties for Misclassifying Column 2 Goods
Because the gap between Column 1 and Column 2 is so large, the incentive to misclassify is obvious, and CBP treats it that way. Federal law sets three tiers of civil penalties for entering merchandise with false information about classification, value, or origin:12Office of the Law Revision Counsel. 19 USC 1592 – Penalties for Fraud, Gross Negligence, and Negligence
- Fraud: a penalty up to the full domestic value of the merchandise. Intentionally misrepresenting origin to dodge Column 2 can cost the entire value of the goods in penalties alone.
- Gross negligence: up to the lesser of the domestic value or four times the unpaid duties.
- Negligence: up to the lesser of the domestic value or two times the unpaid duties.
Honest clerical errors don’t trigger these penalties on their own. But “I didn’t know” is thin protection when your supply chain runs through a Column 2 country and your entry documents show a different origin. If you source materials from or through Russia, Belarus, Cuba, or North Korea, document the supply chain carefully and consider an advance ruling from CBP on origin before shipping.
When Column 2 Status Can Change
Moving a country off the Column 2 list is deliberate work. For temporary NTR, the United States and the country conclude a bilateral trade agreement providing for reciprocal treatment, Congress passes a joint resolution approving it, and the President proclaims NTR status. For Permanent Normal Trade Relations, Congress passes legislation specifically lifting the Trade Act of 1974 restrictions for that country, and the President then grants PNTR by proclamation. Removal is faster: a statute or presidential suspension is enough, and the Column 2 rates apply immediately. Sourcing plans should account for that asymmetry.