What is a tariff fraction and how is it used in international trade?

In the complex world of international trade, every product that crosses borders is subject to a series of regulations and tariffs (taxes) that can vary from country to country. To better understand this process and facilitate commercial operations, it is crucial to understand what a tariff fraction is and how it is used in the field of international trade.

What is a tariff?

According to the Government of Mexico, “the tariff fraction is… the universal way of identifying the qualities of a product that will be exported or imported.”

It is a standard numerical code, used to classify goods uniformly worldwide. These codes are assigned by customs authorities and are used to identify and categorize products based on their characteristics.

Importance and use in international trade.

The use of tariff fractions in international trade is essential to determine the tariffs and other taxes that apply to imports and exports of goods. When a company wants to send or receive goods across borders, it must identify the tariff fraction corresponding to its products according to the tariff classification in force in the destination country.

Once the tariff item has been identified, the tariffs and other costs associated with the import or export of those products can be determined. This information is crucial to calculate the total costs of the operation and comply with the customs regulations of each country, in addition, it is essential to facilitate international trade and guarantee compliance with customs regulations.

How can FES Cargo help you?

At FES Cargo, we understand the importance of correct tariff classification for the success of your international commercial operations. Our team of logistics and foreign trade experts is trained to advise you on the identification and application of the tariff fractions corresponding to your products.

In addition, we offer you personalized customs clearance and logistics management services to guarantee a problem-free import or export process. From the identification of tariff items to the coordination of transportation and logistics, we are here to help you. If you require advice, contact us

Join us!

Do you want to learn more about international trade and logistics? Don’t miss our previous blog on “How to select the ideal transport for your cargo?” In addition, we invite you to follow us on our social networks Facebook and LinkedIn and subscribe to our mailing list to receive the latest blogs directly in your inbox.

Join the FES Cargo community and run your commercial operations successfully!