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How to find which trade agreement gives your export the lowest duty

The same product can face different duty rates in the same destination depending on which agreement it qualifies under. Finding the lowest one takes four things: the HS code, the exporting country, the importing country and proof that the goods meet the agreement's origin rule.

The short answer

The lowest listed rate is only worth having if your goods qualify for it. A preferential rate applies when the exporter and importer are both covered by the agreement, the product's tariff line has a preferential rate, and the goods satisfy the rules of origin and you can prove it. Otherwise the standard most-favoured-nation (MFN) rate applies.

Steps

  1. Fix the HS code and the two countries. Classify the product and note the exporting and importing country. The rate and the origin rule are both set per tariff line, so a wrong code gives a wrong answer.
  2. Find the standard MFN rate in the destination. This is your baseline. Any agreement rate only matters if it is lower.
  3. List the agreements both countries belong to. Membership is by country pair. Some agreements cover only part of a country's trade, and a country can belong to several agreements at once.
  4. Read the preferential rate for your tariff line. Under each agreement, look up the rate for your tariff line. Some lines are excluded from liberalisation and keep the full rate. Some rates fall in stages over several years, so check the rate for the year you ship.
  5. Check the rule of origin for your product. Each agreement sets what counts as originating: goods wholly obtained in the region, a change of tariff heading, a value or weight limit on imported materials, or a specific process. Compare it to how your product is made.
  6. Confirm you can prove origin. The importer usually needs the agreement's origin document or a declaration on the invoice, and you must keep the supporting records. See the certificate of origin guide.
  7. Compare the saving with the cost. Multiply the rate difference by the CIF value, then subtract the cost of the origin paperwork and any delay. Choose the agreement with the best net result, not just the lowest rate.

Why the lowest rate is not always the best

  • The origin rule may be stricter than your production process can meet.
  • The rate may be lower only in a later phase-in year.
  • Some agreements do not cover your tariff line or exclude it.
  • Origin proof rules differ: certificate, self-declaration or approved-exporter status.
  • A claim that fails on audit can bring back the duty owed and penalties.

What Customs Declare shows

For agreements where Customs Declare holds preferential rate data, the duty calculator and the declaration show the standard rate and the preferential rate side by side with the source and date, and it flags where a rule of origin has to be met. It does not decide whether your goods qualify. You confirm that against the agreement text and your production records. Where we hold no rate data for an agreement, we say so rather than fill the gap.

Frequently asked questions

Can I claim more than one agreement on the same shipment?

No. You claim the one preferential treatment you qualify for and prove it. Check the agreement text and the importing customs rules.

Is the preferential rate always lower than the MFN rate?

Usually, but not always for every line. Some lines are excluded and pay the standard rate, and some MFN rates are already zero, so there is nothing to save.

Where do I find the origin rule for my product?

In the agreement's product-specific rules, which are set by tariff line. For the AfCFTA, the Secretariat publishes its instruments and an e-Tariff Book. Customs Declare summarises the rule types it holds.

Sources

Last verified: 2026-09-29

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