Import Duty FAQs: 15 Common Questions Answered

Import duties in the US can be complicated, but understanding them is essential if you're importing goods. This guide answers 15 of the most common questions about how duties are calculated, what documents you need, and how to reduce costs.

Here’s what you need to know upfront:

• What are import duties? Taxes on goods entering the US, calculated based on the product type, value, and origin.
• How are duties calculated? The formula includes the product's value (price + shipping), its Harmonized Tariff Schedule (HTS) classification, and the country of origin.
• What tools can help? Resources like the HTS database and platforms like GetTariffs simplify calculations and ensure compliance.
• Can you reduce duties? Yes, through trade agreements (like USMCA), duty exemptions for low-value shipments, or special programs like GSP.

Key takeaway: Proper classification, accurate calculations, and staying informed about tariffs can save you money and prevent penalties. Let’s break it down further.

Import Duty Basics: What You Need to Know

What are import duties?

Import duties are taxes imposed by the U.S. government on goods brought into the country. These taxes serve several purposes: they generate revenue, protect local industries, and help regulate international trade practices.

When your shipment arrives at a U.S. port, airport, or border crossing, U.S. Customs and Border Protection (CBP) evaluates the goods to determine the applicable duties. This process considers the type of product, its value, and where it was manufactured. All commercial imports go through this assessment.

The amount of duty you owe can vary widely. Some goods may qualify for zero duties under trade agreements, while others might face higher rates depending on how they’re classified under tariff rules.

How are import duties calculated?

Understanding how import duties are calculated can save you from surprises during the import process. Three main factors determine the final duty amount.

First, there’s the dutiable value of your goods. This value typically includes the price you paid for the items plus shipping costs to the U.S. border. It forms the starting point for the calculation.

Next, the duty rate comes into play. This rate is determined by how your product is categorized under the Harmonized Tariff Schedule (HTS). Even small differences in a product’s design or materials can lead to changes in the duty rate.

Finally, the country of origin matters. Some goods qualify for reduced or even duty-free rates if they fall under special trade agreements. For example, items covered by the United States-Mexico-Canada Agreement (USMCA) often benefit from lower rates compared to similar products imported from other regions.

Ultimately, CBP has the final say on duty rates, not the importer.

Understanding the Harmonized Tariff Schedule (HTS)

The Harmonized Tariff Schedule of the United States (HTS) is the key tool for determining duty rates. Based on the International Harmonized System, it outlines tariff rates and statistical categories for nearly all goods imported into the U.S..

The HTS follows a structured format. The first two digits of a code represent broad categories, such as Chapter 61 for knitted apparel or Chapter 84 for machinery. As you move further into the code, additional digits refine the classification to specify the product’s exact characteristics. For instance, the next two digits create headings within each chapter, while subsequent digits provide even more detail.

Accurate classification is critical. Misclassifying goods can lead to overpaying duties or, worse, penalties for underpayment. To classify products correctly, you’ll need to consider their specific features, materials, and intended use. Tools like the U.S. International Trade Commission (USITC) Tariff Database or the interactive HTS search tool can help you estimate duty rates. For more complex cases, you can request a Binding Ruling from the National Import Specialist or consult your local CBP port for guidance.

Getting the classification right isn’t just about avoiding errors - it directly impacts your duty calculations and ensures compliance with customs regulations. This classification process lays the groundwork for the next steps in determining your import duties.

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How to Calculate Import Duties: 3 Simple Steps

Getting your import duties right is essential to staying compliant and avoiding unnecessary penalties. Here's a straightforward guide to help you calculate these duties in three steps.

Step 1: Determine the dutiable value of your goods

The dutiable value is the foundation for calculating your import duties. Start with the transaction value, which is the actual price you paid for the goods. Add any assists - like materials or engineering support you provided to the seller - and include international shipping and insurance costs to the U.S. port of entry.

For example, if you paid $10,000 for machinery and $1,500 for ocean freight from Germany to the Port of Long Beach, the dutiable value would total $11,500.

Some costs are excluded from the dutiable value, such as duties and taxes imposed by the exporting country, charges for construction or assembly work done in the U.S. after importation, and domestic U.S. transportation costs.

U.S. Customs and Border Protection (CBP) uses this dutiable value as the basis for applying duty rates. Accuracy is key here - small errors can lead to larger discrepancies when the duty rate is applied. Once you’ve nailed down the dutiable value, move on to identifying the correct duty rate.

Step 2: Calculate duties using the correct rate

To find the right duty rate, match your product's Harmonized Tariff Schedule (HTS) code with its country of origin. General rates apply to most nations with normal trade relations, while special rates may offer reduced duties under trade agreements.

To calculate the duty, multiply the dutiable value by the applicable rate. For instance, if your $11,500 worth of machinery from Germany is subject to a 2.5% duty rate, you’ll owe $287.50 ($11,500 × 0.025 = $287.50).

For goods subject to specific duties, calculate the total by multiplying the quantity by the per-unit rate instead of using the dutiable value. After this, you’ll need to account for additional fees to get a complete picture of your total customs cost.

Step 3: Factor in additional fees and charges

Import duties are just one piece of the puzzle. You’ll also need to account for other fees, such as:

• Merchandise Processing Fee (MPF): 0.3464% of the dutiable value for formal entries, with a minimum of $27.23 and a maximum of $528.33.
• Harbor Maintenance Fee (HMF): 0.125% for vessel arrivals.
• Excise taxes and special tariffs: These may include anti-dumping duties, countervailing duties, or Section 301 tariffs.

Building on our earlier example, you’d calculate your total customs cost like this: $287.50 in duties + $39.89 MPF (0.3464% of $11,500) + any excise taxes or special tariffs = your final amount owed to CBP.

To stay on top of your import costs, keep detailed records of all calculations. CBP may request documentation to verify your duty payments, and thorough records can also help you find ways to reduce costs, such as exploring trade agreements or reclassifying goods under a different HTS code.

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US Import Duty Rules and Requirements

Documents Needed for Customs Clearance

When it comes to clearing US customs, having the right paperwork can make all the difference. Proper documentation not only speeds up the process but also ensures compliance with regulations. Here’s what you’ll need:

• Commercial Invoices: These should clearly list the seller and buyer’s names and addresses, a detailed description of the products, quantities, unit and total values, terms of sale, and the country of origin.
• Packing Lists: This document outlines the number of packages, their dimensions, weights, and contents, helping customs verify the shipment.
• Bills of Lading or Airway Bills: These serve as shipping records and proof of ownership. Use a bill of lading for ocean transport and an airway bill for air shipments.
• Certificates of Origin: If your goods qualify for preferential duty rates or special tariffs, include a certificate of origin to confirm eligibility.
• Entry Documentation: Submit the required entry forms to US Customs and Border Protection to officially process your shipment.

Ensuring your documents are complete and accurate can significantly reduce delays and keep your goods moving smoothly through customs.

Duty Exemptions and Special Tariff Cases

Let’s take a closer look at how exemptions and special tariff cases can help reduce costs when importing goods.

When You Can Pay Lower or No Duties

There are several ways to qualify for reduced or zero duties on imports into the US. Here are some of the most common options:

Trade Agreements: These agreements can significantly lower duty costs. For instance, the United States-Mexico-Canada Agreement (USMCA) eliminates duties on qualifying goods traded among these three countries. Other agreements, like those with Australia, Chile, and South Korea, also reduce duties if the goods meet specific origin requirements. To take advantage of these benefits, you’ll need proper certificates of origin and proof that your products meet the agreements’ rules of origin.

De Minimis Threshold: Shipments valued at $800 or less are exempt from duties under this rule. This exemption applies regardless of the goods’ country of origin and is particularly beneficial for e-commerce businesses and smaller importers. Note that this threshold covers the total value of all items in a single shipment.

Temporary Importation Under Bond: Some goods can enter the US duty-free for temporary purposes, such as trade show samples, professional equipment, or items for repair or alteration that will be re-exported. A bond ensures that duties will be paid if the goods aren’t exported within one year.

Generalized System of Preferences (GSP): This program allows duty-free treatment for thousands of products from designated developing countries. While the GSP program has faced occasional lapses, it can provide significant savings on a wide range of items, from raw materials to finished goods, when active.

While these exemptions can reduce costs, it’s also important to consider products that may face additional tariffs.

Products with Extra Tariffs in 2025

Some products come with extra tariffs that can increase import costs. These tariffs often stem from trade disputes, security concerns, or efforts to protect domestic industries.

Steel and Aluminum Tariffs: Section 232 tariffs impose a 25% duty on steel and a 10% duty on aluminum imports, citing national security concerns. While some countries have negotiated exemptions or quotas, these tariffs remain in place for most nations, prompting many importers to explore alternative sourcing options.

Chinese-Origin Products: Section 301 tariffs apply to a wide range of goods from China, with rates ranging from 7.5% to 25%. These tariffs cover hundreds of billions of dollars’ worth of products, including electronics, machinery, textiles, and consumer goods. The product lists are frequently updated, so staying informed is crucial.

Solar Panels and Washing Machines: These items face safeguard tariffs aimed at protecting US manufacturers. Solar panel tariffs start at 14% in 2025 and will decrease annually, while washing machine tariffs follow a tiered structure based on the volume of imports.

Antidumping and Countervailing Duties: These duties target specific products from certain countries when unfair trade practices are identified. For example, some steel products face antidumping duties exceeding 100%, while solar cells from several Asian countries may encounter combined duties of over 200%.

Understanding these extra tariffs is essential for accurate product classification and determining the total cost of importing goods.

How to Determine Country of Origin

A product’s country of origin plays a key role in determining duty rates and eligibility for preferential treatment under trade agreements.

Substantial Transformation: This is the main rule for determining origin. A product is considered substantially transformed when manufacturing or processing in a country creates a new product with a distinct name, character, or use. For example, if cotton fabric from India is turned into shirts in Vietnam, the shirts’ origin is Vietnam.

Thresholds and Assembly Rules: Minor packaging or simple assembly doesn’t change a product’s origin. For instance, under the USMCA, automotive goods must contain at least 62.5% North American content, and textiles must undergo specific manufacturing processes within member countries. These requirements ensure that trade benefits are reserved for goods genuinely produced within the region.

Marking Requirements: Most imported goods must display their country of origin clearly and permanently in English. This helps consumers understand where products come from and supports customs enforcement efforts.

Importers should maintain detailed records to prove the origin of their goods. This includes supplier certifications, manufacturing details, and material sourcing information. Customs may request this documentation during audits, making accurate record-keeping critical for compliance and to continue enjoying duty benefits.

Tools for Calculating Duties and Staying Compliant

Accurately calculating duties can be a complex task, but the right tools can make it much easier. These tools streamline tariff management by integrating smoothly into compliance workflows, helping businesses save time and avoid costly mistakes.

How to Use a Duty Calculator

A duty calculator simplifies the process of determining import costs by automating calculations. To get started, you’ll need to input the details of your product to find the correct Harmonized Tariff Schedule (HTS) code. Many calculators include a search feature to help you confirm the HTS code for your product.

For example, if you're importing leather handbags, you’ll need to specify details like the material, size, and intended use to ensure the HTS code is accurate. Once you’ve identified the correct code, enter shipment details such as the total value, quantity, and shipping method. The calculator will account for duty rates and additional fees like Merchandise Processing Fees (MPF), Harbor Maintenance Fees (HMF), and any applicable excise taxes. This provides a clear picture of the total landed cost.

Some advanced calculators go a step further by allowing you to test multiple scenarios. For instance, you can compare costs from different supplier countries or adjust shipment values to see how these variables impact your total costs. This feature is especially useful when negotiating with suppliers or making sourcing decisions.

Why GetTariffs Saves Importers Time and Money

GetTariffs is a platform designed to simplify tariff calculations with the help of AI and daily updates. It enables users to calculate tariffs instantly for multiple origin and destination countries, making it easier to compare costs across sourcing options.

Unlike basic calculators, GetTariffs provides a detailed breakdown of fees, covering not just duties but also other charges like MPF, HMF, and excise taxes. Its intuitive interface makes it accessible even for those who aren’t customs experts.

Another standout feature is its ability to handle free trade agreement calculations. If your goods qualify for reduced duties under agreements like USMCA, the platform automatically applies the preferential rates. This ensures you maximize savings without missing any opportunities for cost reduction.

Premium users benefit from unlimited calculations and access to tariff impact reports, which help businesses plan for potential duty changes. By offering these features, GetTariffs not only simplifies compliance but also supports smarter decision-making throughout the import process.

Where to Find Official Duty Rates and Trade Information

For the most accurate duty rates and classifications, official resources like HTSUS, U.S. Customs and Border Protection (CBP), and the U.S. International Trade Commission (USITC) are invaluable. CBP, in particular, is responsible for determining the final duty rates for imported goods. Their Automated Commercial Environment (ACE) portal allows for electronic filing and provides real-time updates on customs entries.

GetTariffs complements these official sources by consolidating their data into a user-friendly platform. With daily updates and product-specific tariff lookups, the tool combines reliability with ease of use, helping businesses stay on top of changing regulations and rates.

For companies looking to streamline their operations, many modern platforms, including GetTariffs, offer integration with inventory management and logistics systems. This automation reduces manual errors and ensures compliance with the latest rules, making the import process more efficient. By combining official resources with advanced tools like GetTariffs, businesses can maintain accuracy, avoid costly errors, and stay compliant with import regulations.

Conclusion: Making Import Duty Compliance Simple

Navigating U.S. import duty compliance becomes much easier when you have the right knowledge and tools on your side. It all starts with mastering the basics: correctly classifying your products with HTS codes, calculating duties precisely, and staying informed about regulatory updates.

For instance, April 2025 brought significant changes with new tariff policies, including a 10% minimum rate and temporary halts on additional tariffs. These shifts are a reminder of how quickly trade policies can evolve, emphasizing the importance of staying proactive and informed.

Compliance is a shared responsibility between U.S. Customs and Border Protection (CBP) and the importing community. Businesses must ensure their goods are authentic, safe, and legally sourced. Missing payments or failing to provide proper documentation can lead to serious consequences, such as losing immediate release privileges or accruing interest on overdue amounts.

To reduce risks, make it a habit to check resources like CBP.gov and Trade.gov for updates. Keep a close eye on your supply chain so you can adapt swiftly to any tariff changes.

Modern solutions like GetTariffs simplify the process by combining AI-driven calculations, daily rate updates, and detailed fee breakdowns. These tools turn what used to be a tedious, manual task into an efficient, automated system. Whether you're handling a single shipment or managing complex supply chains, using advanced tools alongside official resources ensures accuracy while saving time and money.