Importing goods from China to the USA involves understanding something that is many times very troublesome to handle: import taxes. Generally speaking, an importer needs to understand all the different details of import duty regulations and procedures to make sure he is in complete compliance and can make informed business decisions. In this companion brought to you by Topshipping, we will provide you with basic information on import taxes from China to the USA.
Understanding Import Taxes
Import taxes are otherwise known as customs duties or tariffs, which are freights assessed by the U.S. government on imported goods.
Taxes are levied for covering domestic diligence, regulating trade, and inducing profit for the country. T
he quantum of import duty depends on several factors: the product bracket, value, and country of origin.
what is the import tax from china to usa?
The import tax from China to the USA is called a tariff or customs duty. Actually, this is just one kind of tax on goods brought into the country, where the amount depends on the type of product you are importing.
CBP will set the tax rate on most goods based upon the Harmonized Tariff Schedule (HTS), which is a list containing several thousand items and corresponding tax rates. Some have a nominal tax rate, others may be quite high.
Apart from that, some more tariffs are imposed on goods originating from China due to the ongoing trade war between the United States and China initiated in 2018. These additional duties, commonly termed as Section 301 tariffs, have been placed on a wide range of Chinese products at rates ranging from 7.5% up to 25%.
You will also have to pay, in general, the import fees like brokerage fees and processing fees. Of course, to avoid unpleasant surprises, it is very important to check the exact tax rate for your product in advance.
You may also fall under what is called the de minimis rule, applying to items with less than an $800 value that allows goods to enter the U.S. without paying any import taxes.
import duty from china to usa
Import duty is payable on goods shipped from China to the USA on a number of determining factors: the classification of the product according to HTS, the duty rate, and the declared value of the goods. There is a distinct HTS code for every different item, and that code prescribes the rate of tariff. The rates differ; certain items are very low-rated, while others may be higher according to the Section 301 tariffs for specified goods originating in China.
Normally, there are duties to pay on imports, based on the custom value, normally the purchase price plus shipping and handling. Apart from this, an extremely low-value shipment would not pay duties under the de minimis rule. While compliance with U.S. customs regulations is key, working out most of the technical details in importing is best left to a customs broker or freight forwarder. The situation regarding tariffs and regulations does change rather often, so one would always want to check for updates.
Determining the HS Code
You can look for the HS Code law of your product on the website of the U.S. International Trade Commission or, if you have hired one, consult with a customs broker. Let me also add here that the HS law will be a determinant of what import duty rate should be applied to your goods.
Import Taxes Calculation
To determine the import taxes, one has to factor in the Customs Value, which is normally inclusive of cost of goods, insurance, and freight charges.
After one has the value from the Customs, one could apply the appropriate import duty rate as per the HS law.
Import taxes can also be determined directly on the website of U.S. CBP through the resources and calculators therein.
New Shipments and Considerations
Whittle by whittle from import tariffs, there may be additional duties and concerns to consider when importing from China to the USA.
This includes goods processing duties, port conservation duties, and anti-dumping countervailing duties.
This is very crucial, and these costs must be factored in when determining the overall landed cost of your imported products.
Import Duty Exemption and Special Programs
Immunity or preferential treatments can be accorded to certain items because of special programs.
Some of the items in this category are those imported for exploration and development, and under the free trade agreements, which exempt certain import taxes.
Import Tax Compliance and Documentation
Working with an estimable customs broker, like Topshipping, will ensure the entire process is compliant and well-facilitated in regard to customs.
Also, they assist you in treading through the obstacles that may come along your way.
In conclusion, Importing from China to the USA is all about understanding import taxes and their complications.
This will be understood by being familiar with the regulations of import duty, finding the right law, directly calculating import taxes, considering fresh freights, immunity or special programs, and icing on import duty compliance.
With Topshipping, we are committed to supporting you in your import trials and furnishing you with expert advice right through the importation trip.
Import Taxes from China to USA FAQ’s
What are import taxes and why are they levied?
Import tax refers to all the fees that the U.S. government imposes on imported goods. They are generally levied to cover domestic diligence in regulating trade and to raise revenue for the country.
How to find the right Code for my imported goods?
You can also find the HS code of your product on the website of the U.S. International Trade Commission, or you may ask for the help of a customs broker.
How to Calculate Import Taxes?
Calculating import taxes involves determining the Customs Value, which covers the cost of merchandise plus insurance and freight costs.
Once you’ve obtained the Customs Value, you add to it an import duty rate corresponding to the HS code of your product.
Are there other costs besides import taxes that I may be required to pay while shipping from China to the US?
Other costs besides import taxes include but are not limited to warehousing processing fees, harbor conservation fees, anti-dumping, and countervailing duties.
Additionally, these should be taken in while calculating the overall landed cost your imported goods.
Are there any import tax immunities or special programs available?
However, there may be certain products that enjoy immunity from import duties or are covered under a special program of preferential treatment.
Goods imported for research and development purposes, or those eligible under free trade agreements, are likewise exempt from certain import taxes.
