How to Calculate US Import Duty on Goods From China

The short answer: the import duty formula

For most goods, US import duty is simple to calculate: customs value × duty rate. The duty rate depends on the product’s HTS code (Harmonized Tariff Schedule). The hard part is getting each of the three inputs right: the value, the code and the rate.

1. Find the correct HTS code for your product.
2. Work out the customs value of the goods.
3. Look up the duty rate for that code, including any extra tariffs on Chinese-origin goods.
4. Add the customs fees and your freight, brokerage and delivery costs to get your landed cost.

Step 1: Find your HTS code

Every product has a classification code in the US Harmonized Tariff Schedule, usually written with 8 to 10 digits. The code decides your duty rate, so a wrong code can mean overpaying or a customs hold. You can search the schedule on the USITC website, ask your supplier what code they use (and double-check it), or have a licensed customs broker confirm it.

Step 2: Work out the customs value

US Customs normally bases duty on the transaction value, which is the price you actually pay the supplier for the goods. For the US this is generally an FOB-type value, so international freight and insurance are not added when calculating duty. That is different from the UK and many other countries, where freight and insurance are included.

Keep the commercial invoice accurate. Under-declaring the value is one of the fastest ways to trigger penalties and delays.

Step 3: Look up the duty rate

The general duty rate for your HTS code is only part of the story. Many products made in China are also subject to additional tariffs, such as Section 301 tariffs, which are charged on top of the normal duty. Which products are covered, the rates, and any exclusions change over time, so always check the current rate for your exact HTS code before you order.

We check the current duty and tariff rate for your goods before every shipment and include it in your quote. See our guide to shipping from China to the USA: price, customs and DDP.

Step 4: Add the customs fees

Duty is not the only government charge. Most commercial imports also pay:

• Merchandise Processing Fee (MPF): an ad valorem fee of 0.3464% of the goods value on formal entries, with a minimum and maximum that are adjusted each year.
• Harbor Maintenance Fee (HMF): 0.125% of the goods value, charged on sea shipments only.
• Customs broker fee, customs bond and ISF filing: charged by your broker or forwarder, not by the government.
• Freight, port charges and delivery: not part of duty, but part of your landed cost.

Worked example: import duty on $10,000 of goods

Here is an illustration only, using made-up rates, to show how the pieces fit together. Your rates will be different.

In this example the government charges add about 15% to the goods value. That is why working out landed cost before you place an order matters more than the factory price alone.

Common mistakes that make duty more expensive

• Using the wrong HTS code, or a code copied from a competitor.
• Forgetting additional tariffs on Chinese-origin goods.
• Quoting a customer price without including duties, MPF, HMF and brokerage.
• Under-declaring the value on the invoice.
• Assuming a “DDP” quote automatically includes every tariff. Always ask exactly what is included.

Can I use an import duty calculator?

An online calculator can give a rough estimate, but it is only as good as the HTS code and value you type in, and many do not include additional tariffs or fees. The safest approach is to confirm the code, check the current rate, and ask your forwarder for a landed cost estimate in writing. Our team can do this for you as part of sea freight from China to the USA or Amazon FBA shipping.