Import Duty & Tax from China to USA 2024
Since the United States imposed steep tariffs on a wide range of Chinese imports in the summer of 2018, the trade relationship between the two countries has been marked by escalating tensions. This ongoing trade war has created a complex and evolving landscape that directly impacts importers and exporters. The situation is further complicated by the disruptions to global trade caused by COVID-19, making it essential to stay informed about the latest import duty regulations for your shipments.
While our US Customs duty calculator provides a useful estimate, the actual duty rates are determined by customs authorities
What Is Customs Duty?
Customs duty is a tax imposed by a country’s government on goods that are imported or, in some cases, exported across international borders. The purpose of customs duty is to generate revenue for the government and to protect domestic industries by making imported goods more expensive compared to locally produced goods.
Key Points About Customs Duty:
Calculation: Customs duties are usually calculated as a percentage of the value of the goods being imported, which may include the cost of the goods themselves, shipping, and insurance. The exact rate can vary based on the type of product, its country of origin, and the specific trade agreements or tariffs in place.
Harmonized System (HS) Codes: Products are classified using Harmonized System codes, which are internationally standardized codes used to determine the applicable customs duties and taxes.
Types of Customs Duty:
- Ad Valorem Duty: Based on the value of the goods.
- Specific Duty: Based on a specific measure such as weight, quantity, or volume.
- Compound Duty: A combination of ad valorem and specific duties.
Tariffs and Trade Agreements: Customs duties can be influenced by trade agreements between countries. For example, free trade agreements may reduce or eliminate duties on certain goods between member countries.
Payment: Importers are responsible for paying customs duty when their goods enter the country. Failure to pay the correct amount can result in penalties, delays, or confiscation of goods.
Purpose: The primary goals of customs duties are to protect local industries from foreign competition, regulate the entry of goods into the country, and generate government revenue.
How is Customs Duty & US Import Tax Calculated?
Customs duties and import taxes in the U.S. are determined by two key factors: the country of origin and the product itself, as classified by its Harmonized System (HS) code. Contrary to popular belief, international freight shipments valued under $2,500 are not automatically exempt from customs duties.
The misconception likely arises from confusion with two other rules: first, shipments valued under $2,500 qualify for “informal customs entry,” which is a simplified and less costly process; second, express freight shipments (handled by international couriers) often face less stringent customs checks. However, this does not mean they are exempt from duties or taxes.