What is MFN?
MFN stands for Most Favored Nation. WorldTariff uses the MFN applied rate as the customs duty. The MFN applied rate includes any temporary or contingent rate changes and is the rate most likely to be available to most countries. All member states of the World Trade Organization (WTO) have agreed to offer the MFN rate to each other. Other kinds of trade agreements – multilateral – which involve several countries trading among each other, or bilateral, in which two countries make an agreement between themselves, may give countries a preferential rate, which may be lower than the MFN, on specific goods. Countries that are not WTO members, for example, the Russian Federation, maintain a “General” tariff for imports and “Preferential” rates for imports from countries with which it maintains trade agreements. This “Preferential” rate is considered the Most Favored Nation (MFN) rate. Countries that are not WTO members, or who have not been granted MFN status by the importing country, are subj
