Copy URL to Clipboard
The costs associated with importing from China have become a vital issue for many importers. Ever-increasing tariffs on numerous products have made things more challenging, but the nation does remain one of the USA’s top trading partners.
Key Takeaways:
Read on to learn more about the cost of importing from China and how to calculate duty estimates.
President-elect Trump has announced plans to introduce new tariffs on Chinese goods, signaling another potential shift in U.S.-China trade relations that could significantly impact American importers and consumers.
The proposed measures include an additional 10% tariff on all Chinese products, layered on top of any existing duties. Trump has also suggested more extreme actions, such as removing China’s Most Favored Nation status and imposing tariffs exceeding 60% on all imports from the country. These proposals would far surpass the Section 301 tariffs implemented during his previous administration.
Electronics, machinery, toys, plastics, and furniture are among the key product categories that could see significant cost increases under these tariffs. With China being a major supplier of these goods, the ripple effect could lead to higher costs for U.S. businesses and consumers across various industries.
Although the exact details and timeline for these tariffs remain unclear, Trump has indicated that the measures could take effect as early as January 20, 2025. The proposed tariffs come in tandem with an announcement of a 25% tariff on imports from Canada and Mexico, and are framed as a response to concerns over trade imbalances, illegal immigration, and the influx of drugs into the country.
Businesses that rely on Chinese imports should closely monitor these developments and prepare for potential disruptions or cost increases in their supply chains. As the situation evolves, strategic planning will be critical to mitigating the potential impact of these new trade policies.
Related: How Trump’s Tariff Policies May Impact International Trade
You’ve decided to source your products out of China and are now wondering just what it will cost you. To correctly account for costs, there are multiple taxes and related fees to calculate.
Which of these fees apply to your import and how much you actually end up paying will depend on the value, type, and quantity of your goods. Other factors affecting cost are the Incoterms® you and the seller agree to.
Costs related to Section 301 tariffs and anti-dumping/countervailing duties (AD/CVD) are often owed on specific products imported from China. Likewise, shipping and insurance will be influenced by mode of transport.
In this article, I’ll give you a simple breakdown of the process used to calculate your import taxes when importing goods from China.
Related: Importing From China to the US
Customs duties are owed on shipments from China valued at $800 or more.
Shipments valued at less than $800 may be eligible to enter the U.S. duty free under Section 321 de minimus rules. There is no free trade or preferential duty agreement between the U.S. and China, so you’ll be using the Normal Trade Relation (NTR) rates for your calculations.
To get an accurate estimate of what customs duties you’re likely to pay, follow these steps:
Let’s go over an example. You plan to import 3,000 kilograms of toys for pets. The HTS code is 4016.99.20.00 with an assigned duty rate of 4.3% of value per kilogram. Assuming the toys are worth $6.00 per kg, here’s the formula you’d follow:
According to this breakdown, we can estimate that you’ll pay $774 in customs duties based on the value of your shipment. However, since the products are coming from China, there are two other significant tariffs to consider.
This estimate also assumes that the Incoterms® you agreed to with the seller have them covering shipping, cargo insurance and other logistical needs (FOB value), which isn’t usually the case. When doing this calculation on your own, make sure the total cost accounts for those expenses.
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.
Related: A Guide to China’s Section 301 Tariffs (2024 Update)
How do you know whether your import may be subject to such a tariff?
When a customs broker is confirming the HTS code of your product, they will check for an additional designation assigned by the U.S. International Trade Commission (USITC). These secondary designations are covered in Chapter 99 of the HTS.
Products subject to additional tariffs will often come up under HTS heading 9903. However, the complete 10-digit code needs to be confirmed by a customs broker because this subheading also applies to Section 301 exclusions.
Related: Track the Section 301 Tariff Exclusions List
The additional duty assigned by the Chapter 99 designation will be in addition to any rate already applied. Let’s see how this would work. The duty rate was 4.3% in the example we used earlier. Based on a value of $18,000, that came out to $774.
If a 25% Section 301 tariff were applied, it would look like this:
The additional Section 301 tariff rate increases your import costs considerably, especially when you consider we are still using FOB value estimates.
Our easy to use Look-Up Tool will help you find duty rates and estimate your import costs.
Anti-dumping and countervailing duties are imposed on certain goods in order to protect domestic industries. These orders are pushed through by the USITC when they find products being sold in the U.S. at unfairly low prices or receiving subsidies in their own country.
Like Section 301 tariffs, they are applied in addition to existing duties.
Related: Antidumping and Countervailing Duties: Balancing World Trade
As of September 2024, there are 238 current AD/CVD orders in effect against products from China, and 24 investigations are underway. The International Trade Administration (ITA) has the full list of all goods from China subject to AD/CVD.
These orders can impose duties of over 200% of value on goods. The goal of these high fees is to either make importing the product unprofitable or ensure that its price is closer to what U.S. companies charge for similar goods.
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.
Outside the duties we’ve mentioned here, there are the general costs that apply to imports from any country as well as your logistics spend. The common fees required by the ports and Customs and Border Protection (CBP) include things such as:
It’s worth noting that value-added taxes (VAT rates) are not charged on imports from China to the U.S., so that’s one less thing to worry about.
For more information on these costs, check out: A Guide to U.S. Import Taxes: Duties, Tariffs, and Other Fees.
Whether you’re an experienced importer or a new entrepreneur, navigating the world of customs clearance and global imports can be complicated and confusing. At USA Customs Clearance, we have the experience and know-how to help you buy and sell products internationally, and reduce costs while doing so.
Our full range of brokerage services includes:
Reach out today and give us a call at (855) 912-0406 or send us a specific query through our online contact form. We’ll help you calculate your import costs from China and ensure the clearance process goes smoothly.
Copy URL to Clipboard
I have ordered machines from China. My carrier delivers the container to my Houston address. He told me to transfer taxes and other fees to him in China because he has to pay the customs and other fees. It is usual? Can i trust him This is my first ever order from China.
Do you know if import duty and tax will be charged for one $97 LED flashlight from China? And if so, what is the percentage rate? Can the USPS collect the fee upon delivery?
I would like to calculate import tariffs for products imported from China by container.
I have prepared a list of restaurant equipments to buy from Alibaba China
It will be for my own use not for resale
How much percentage i need to pay as total custm fees after arriving to los angelos port
How much i need to pay also for the custom broker total fees
The total of the bill is 18000usd besides 3500usd shipping fees
Thank you