Are you planning to import goods into the United States? Whether you’re a seasoned business owner or just starting your import journey, understanding US import taxes can feel overwhelming. Do you think it’s necessary to obtain U.S. Import License?

The truth is, import taxes are more than just government red tape. They’re essential tools that protect American industries and generate revenue for the country. But here’s the good news: once you understand the basics, calculating and paying these taxes becomes much more manageable. In order to handle your taxes and duties, you need to find the most accurate HTS code for your product. AI HTS Code Finder will help you to find the most accurate HTS code for your product.

How Does HTS Code Affect Your Import Duties?

Have you ever wondered how customs officials determine exactly how much tax you owe? The answer lies in the Harmonized Tariff Schedule (HTS) code system. Every product has a unique 10-digit HTS code that tells customs officials:

• What the product is
• What materials it’s made from
• Its intended use
• Where it comes from

This code directly determines your duty rate. Even similar products can have vastly different rates based on their specific classification.

Discover more: Exporting to China from U.S.

How to Find The Most Accurate HTS Code for Your Product?

Finding the most accurate HTS code for your product doesn’t have to be a big deal. You can easily use AI HTS code finder tool or follow these steps. Here’s how to ensure accurate classification:

1. Identify your product’s correct HTS code
2. Consult official resources (CBP website or USITC)
3. Find the corresponding duty rate
4. Check for additional tariffs (especially for Chinese imports)
5. Maintain proper documentation
   Pro tip: Misclassification can lead to fines and penalties, so accuracy is crucial. When in doubt, consult with a licensed customs broker.

The 7 Types of US Import Duty from China to USA

US import taxes are government-imposed charges on goods entering the United States. Think of them as the price of admission for foreign products wanting to compete in the American market. What are the different types of import taxes you’ll encounter? Also, remember to gather all the necessary documents required for import customs clearance in USA.

1- Tariffs and How to Calculate?

Tariffs are perhaps the most straightforward type of import tax. These are direct taxes applied to specific products, often serving as a protective barrier for American manufacturers. Customs duties are indirect taxes that vary based on several factors:

• Product value
• Weight
• Country of origin

The US uses two main types of customs duties:

• Specific duties: A fixed amount per unit (like $2 per pound)
• Ad valorem duties: A percentage of the product’s value (like 5% of total value)

Real-World Example: Let’s say you’re importing electronics worth $10,000 with an HTS code carrying a 2% duty rate. Your calculation would be: $10,000 × 2% = $200 in customs duties.
Remember, duty rates vary dramatically – from 0% for some products up to 350% for others, with the average sitting around 4.2%. Customs duties are owed on shipments valued at $800 or more.

2- Merchandise Processing Fee (MPF) and How to Calculate?

Think of the MPF as the cost of processing your paperwork. This fee applies to most US imports and varies based on your shipment’s value:
For formal entries (over $2,500):

• Rate: 0.3464% of shipment value
• Minimum: $32.71
• Maximum: $634.62

For informal entries (under $2,500):

• Flat fee: $2.62 to $11.78 per shipment

Example: If you have a formal entry worth $15,000: MPF = $15,000 × 0.3464% = $51.96
Since this falls between the minimum ($32.71) and maximum ($634.62), you’d pay $51.96.
Although the MPF might seem small, it can add up significantly for businesses with frequent shipments.

3- Harbor Maintenance Fee (HMF) and How to Calculate?

Importing goods by sea? You’ll encounter the HMF, which helps maintain America’s ports. This fee is:

• Rate: 0.125% of shipment value
• Applies to: All imports by ocean freight, regardless of value
• Formula: Shipment Value × 0.125% = HMF

Example: For a $20,000 shipment arriving by sea: HMF = $20,000 × 0.125% = $25
This fee is required for all ocean freight imports, making it an essential cost to factor into your sea shipping calculations.

4- Anti-Dumping (AD) and Countervailing (CVD) Duties

These special duties come into play when trade isn’t quite “fair.” Here’s when they apply:

• Anti-dumping duties kick in when foreign companies sell products in the US below their home market prices. It’s like a foreign company selling widgets for $10 in America while charging $15 in their own country – that’s dumping.
• Countervailing duties apply when foreign governments subsidize their exporters, giving them an unfair price advantage. These duties are typically much higher than standard tariffs because they’re designed to eliminate significant competitive advantages.

Calculation Method:

These duties are applied in addition to existing standard duties. They’re usually much higher than standard tariffs and can exceed 200% of the product’s value.

Process:

1. Check if your product is subject to AD/CVD orders (there are hundreds against Chinese products)
2. Add the AD/CVD rate (usually a percentage) to your standard duties
3. Calculate: (Standard Duty) + (Product Value × AD/CVD Rate) = Total Duty

Example: If you’re importing steel products worth $50,000 with:

• Standard duty: 3% = $1,500
• AD duty: 25% = $12,500
• Total duties: $1,500 + $12,500 = $14,000

5- Reciprocal Tariffs/Executive Order Tariffs: The Latest Trade Policy Tool

When trading partners impose higher tariffs on US products than we impose on theirs, reciprocal tariffs help balance the equation. Currently, most trade partners face an additional 10% ad valorem tariff on top of standard rates. China is a notable exception to this rule.

China-Specific Rates:

• 20% ad valorem tariff imposed effective March 4, 2025, added to pre-existing duties
• Country-specific tariff of 34% ad valorem, potentially reduced to 10% ad valorem for certain periods
• These rates are applied in addition to standard HTS code duties and any applicable Section 301 or AD/CVD duties

Calculation Example: For a $25,000 shipment from China:

• Standard HTS duty (5%): $1,250
• Section 301 tariff (25%): $6,250
• Executive Order tariff (20%): $5,000
• Total duties: $1,250 + $6,250 + $5,000 = $12,500

6- Additional Federal Duties and How to Calculate?

Some products face extra charges collected by CBP on behalf of other agencies:

• Federal excise taxes on alcohol, tobacco, and firearms
• Environmental taxes on ozone-depleting chemicals
• User fees for agricultural product inspections

7- Section 301 Tariffs and How to Calculate?

Section 301 tariffs were introduced in 2018 and primarily target various commodities from China. These are additional duties applied on top of standard rates, making Chinese imports significantly more expensive.

Calculation Details:

• Applied in addition to standard customs duties
• Rates historically ranged from 25% to 100%
• Calculate by multiplying total shipment value by the Section 301 tariff percentage
• Add this amount to your standard customs duty

Example: Let’s say you’re importing goods from China worth $18,000:

• Standard duty rate: 4.3%
• Standard duty: $18,000 × 4.3% = $774
• Section 301 tariff: 25%
• Section 301 duty: $18,000 × 25% = $4,500
• Total customs duties: $774 + $4,500 = $5,274

Fee Type	Calculation Method	Rate/Amount	When It Applies	Example ($10,000 shipment)
Customs Duties	Customs Value × HTS Duty Rate	0% to 350% (avg 4.2%)	Shipments ≥ $800	$10,000 × 2% = $200
Merchandise Processing Fee (Formal)	Shipment Value × 0.3464%	Min $32.71, Max $634.62	Formal entries > $2,500	$10,000 × 0.3464% = $34.64
Merchandise Processing Fee (Informal)	Flat fee	$2.62-$11.78	Informal entries < $2,500	N/A (shipment too large)
Harbor Maintenance Fee	Shipment Value × 0.125%	0.125% of value	All ocean freight	$10,000 × 0.125% = $12.50
Section 301 Tariffs	Shipment Value × Applicable Rate	25% to 100%	Specific goods from China	$10,000 × 25% = $2,500
AD/CVD Duties	Shipment Value × Applicable Rate	Often over 200%	Products under AD/CVD orders	$10,000 × 25% = $2,500
Executive Order Tariffs	Shipment Value × Applicable Rate	10% (general), 20% (China)	Based on trade policies	$10,000 × 20% = $2,000

How Much Is the Average U.S. Customs Duty Rate?

Let’s talk numbers. The overall average duty rate for US imports is 4.2%. However, this figure can be misleading because rates vary dramatically:

• Range: 0% to 350%+
• Most goods from China: 3-5% average (can range 2-25%+)
• Factors affecting rates: Trade disputes, anti-dumping measures, tariff adjustments

Remember, these are base rates. Special duties like Section 301 tariffs or anti-dumping duties can significantly increase your total costs.

What Is the Best Way to Pay Your Import Duties?

Once your shipment arrives and duties are assessed, you have several payment options. Which method works best for your situation?

Option 1: Online Through ACE (Automated Commercial Environment)

The ACE system is CBP’s primary platform for managing imports. This electronic system allows you to:

• File entry documents
• Pay duties online
• Manage compliance requirements
• Track your shipments

Option 2: Work With a Customs Broker

Most importers choose this route, and for good reason. Licensed customs brokers:

• Handle all paperwork on your behalf
• Ensure accurate HTS code classification
• Navigate duty calculations
• Submit payments through ACE
• Reduce your compliance burden

Option 3: Manual Payments

For those preferring direct control, you can pay duties directly to CBP through these ways and always consult CBP guidelines to ensure proper procedures.

• An importer account with ACE
• Checks for smaller shipments

Option 4: Deferred Payments (For Qualified Importers)

Trusted traders enrolled in programs like C-TPAT may qualify for:

• Deferred payment options
• Faster customs processing
• Reduced examination rates

FAQ

1. Is the $800 duty-free threshold still valid for Chinese goods?
   No. As of May 2, 2025, the de minimis exemption (duty-free threshold) has been eliminated for all goods from China and Hong Kong, regardless of value. Previously, items under $800 entered duty-free, but now all Chinese imports face tariffs.
2. How much are the current tariffs on Chinese imports?
   Current average US tariffs on Chinese exports stand at 51.1% and cover 100% of all goods. The basic structure includes a 20% fentanyl-related tariff plus additional reciprocal tariffs, though a 90-day pause reduces rates to 10% effective May 14, 2025.
3. Why did Temu and Shein prices suddenly increase so much?
   Temu has started adding “import charges” of about 145% in response to President Donald Trump’s tariffs. Some fees range between 130% and 150%, more than doubling the cost of items. A $18 dress now costs $44 after import charges.
4. What’s the difference between formal and informal entry?
   Formal entry (Entry Type 1) is required for shipments with a value greater than $2,500. Informal entry (Entry Type 11) may now be the best option for most low-value shipments from China and Hong Kong. Informal entry is simpler but still requires duty payment.
5. Do I pay import duty to the Chinese seller or separately?
   Import duties are paid separately to US Customs, not to the Chinese seller. The seller’s quote should exclude duties unless specifically agreed otherwise. Your shipping terms (FOB, CIF, etc.) determine who pays what costs, but import duties are always the importer’s responsibility.
6. How do I find the HTS code for my product?
   Use the official US HTS lookup tool at hts.usitc.gov. The first step is accessing the Harmonized Tariff Schedule and checking the HTS code to find out the tariff rate for the specific product/category. Be very specific in your product description for accurate classification.
7. What are Section 301 tariffs and do they apply to my goods?
   Section 301 was signed in 2018 and imposed tariffs ranging from 25% to 100% on a wide variety of commodities regularly imported from China to the U.S. Check if your HTS code has an “I” symbol indicating Section 301 coverage.
8. How much will I pay for a $300 phone from China?
   For cellphones with HTS number 8517.12.00, the base duty rate is typically 0%, but you’ll still pay the current China-specific tariffs (around 30-51% total). On a $300 phone, expect $90-150 in additional costs plus processing fees.
9. What’s MPF and do I have to pay it?
   Merchandise Processing Fee (MPF) applies to formal entries. MPF Calculate Formula: Declaration Value x MPF Rate (usually 0.3464%, $26.79 minimum and $519.76 maximum). It’s separate from import duties.
10. Can I get duty refunds if I return items?
    Duty drawbacks are refunds from US Customs on duties that you’ve paid to import an item. Returns of some imported goods are eligible for a duty drawback. However, this doesn’t include shipping provider fees and has specific requirements.
11. How long can customs hold my package?
    There is no specific duration that customs can take before clearing your shipment. The whole process depends on the aspects that surround the package. Delays occur when awaiting payment confirmation, missing paperwork, or quality verification issues.
12. What’s the difference between antidumping and countervailing duties?
    Antidumping duty is an extra charge that countries place on imported goods that are similar to those produced locally, while countervailing duties offset subsidies. As of February 2025, there are 237 current AD/CVD orders in effect against products from China.
13. Are postal shipments treated differently than courier shipments?
    Yes. Goods from China and Hong Kong valued at or under $800 are subject to an ad valorem rate of duty or a postal fee starting May 2, 2025. The per postal item containing goods duty for low-value postal shipments is $100 as of May 2, increasing to $200 on June 1, 2025.
14. Will I need my Social Security number for customs?
    On imports over $800, shipping providers will reach out about any duties and may need info, like a Social Security number. This is required for formal entry processing and identity verification.
15. How do stacked tariffs work on Chinese goods?
    For many importers, the true tariff tax on Chinese goods now ranges from 40% to 70%. This includes base WTO rates plus fentanyl tariffs plus reciprocal tariffs. For example, children’s sneakers with leather uppers face a 40% tariff (10% base plus 30% additional).
16. Can I avoid duties by having goods shipped from a different country?
    Tariffs are based on the country where an item was manufactured, not the country from which an item was shipped. Trans-shipping through other countries doesn’t avoid Chinese origin duties and may constitute illegal circumvention.
17. What documents do I need for importing?
    Essential documents include commercial invoice, packing list, bill of lading/airway bill, and any required certificates. The seller should provide detailed description of items in English, quantity of each type of item, unit price and total value, weight, and country of origin.
18. Are there any products exempt from China tariffs?
    Select merchandise with specific HTSUS codes may be excluded, and importers may request refunds of duty paid before exclusions were provided. However, most consumer goods face the current tariff structure.
19. How much do processing fees typically cost?
    Additional processing fees may be charged by the shipping provider (e.g. UPS) or US Customs, and often range from $10-$30. These are separate from import duties and vary by carrier and service type.
20. Should I use a customs broker?
    If your import is under an AD/CVD order, we highly recommend working with a customs broker to ensure fees are calculated and paid correctly. For complex shipments, high values, or first-time importers, a broker can prevent costly mistakes and ensure compliance.