Glossary
What is the Most Favoured Nation (MFN) tariff?
The Most Favoured Nation (MFN) tariff is the standard duty rate a WTO member applies to imports from all other members where no preferential agreement or unilateral preference applies. It is the default rate against which every concession is measured. |
Why 'most favoured' actually means 'standard'
The name misleads. MFN is a non-discrimination principle set out in Article I of the GATT: any concession a member grants one trading partner must be extended to all the others. So the MFN rate is not a special deal it is the baseline everyone gets, and the rate you pay when nothing better applies.
When does a lower rate apply?
- A free trade agreement, where the goods meet its rules of origin.
- A unilateral preference scheme for developing countries.
- A tariff suspension or a tariff rate quota reducing duty on specified goods.
Where to find your MFN rate
The UK Global Tariff sets MFN rates for GB imports, replacing the EU’s Common External Tariff on 1 January 2021. The rate follows the commodity code, so classification not the supplier or the route decides the number you pay.
iCustoms returns the MFN rate and any available preference the moment a commodity code is assigned. |
