How to calculate import duties and taxes from China to the US

To calculate import duties and taxes from China to the United States, you need:

1. Accurately determine the product’s HTS code.
2. Determine the taxable value of the goods.
3. Look up the applicable basic HTS rate.
4. Check the latest official U.S. information (USTR, CBP) to see if your product is subject to Section 301 tariffs and the specific rates.
5. Check whether your products are subject to anti-dumping or countervailing duties (AD/CVD) and understand the applicable rates (available on the U.S. Department of Commerce and ITC websites).
6. Calculate other fees, such as MPF and HMF.

Key factors affecting import tariffs and taxes on Chinese imports to the US

Calculating import tariffs and taxes on goods shipped from China to the United States involves several key steps and regulatory considerations. Importers must understand the components that influence duties to ensure compliance and accurately forecast landed costs. The following are the primary factors that determine the total import charges:

1. Goods Classification (HTS Code): The foundation of tariff calculation is correctly classifying your product using the Harmonized Tariff Schedule (HTS) code. Every product imported into the U.S. is assigned a specific HTS code, which determines the applicable base tariff rate. These codes are derived from the globally recognized Harmonized System (HS), with additional digits used by U.S. Customs for more detailed classification. Accurately identifying the correct HTS code is critical to avoid misclassification penalties and apply the correct duty rate.
2. Value of the Goods (Dutiable Value): Most tariffs are assessed on an ad valorem basis, meaning they are calculated as a percentage of the goods’ value. U.S. Customs determines this “dutiable value” primarily based on the transaction value—the price paid or payable for the goods. This value may also include additional costs such as packaging, freight, and insurance, depending on the terms of shipment and valuation rules set by U.S. Customs and Border Protection (CBP).
3. Basic Tariff Rate: The base tariff rate is applied once the HTS code is determined and the dutiable value is established. This rate reflects the standard duty imposed on the product under normal trade conditions. However, due to current U.S.-China trade relations, this is often not the final tariff applied.
4. Section 301 Tariffs: In response to what the U.S. government considers unfair trade practices by China, Section 301 tariffs have been in effect since 2018. Additional duties are imposed on thousands of Chinese products across several tariff lists. If your product is included on one of these lists, you must apply the additional 301 duty on top of the standard HTS tariff. The rate and applicability depend on the specific list under which your product falls.

May 2025 Update: China and the US Reach a Tariff Agreement

In May 2025, China and the US reached a key agreement on tariffs, marking a de-escalation of the trade tensions that had escalated since the beginning of the year. Previously, on March 4, U.S. President Trump signed Executive Order 14195, raising tariffs on Chinese goods from 10% to 20% and increasing them to 145% on April 2. In response, China imposed retaliatory tariffs of up to 125% on U.S. goods.

Under the agreement reached on May 12, both sides agreed to remove the previous retaliatory tariff measures. The United States will reduce tariffs on Chinese goods to 30%, while China will reduce tariffs on U.S. goods to 10%. Additionally, starting May 14, both sides will implement a 90-day tariff suspension period during which tariff levels will be further reduced to facilitate the improvement of trade relations.

China’s Response to U.S. Tariffs

While this may not affect your import costs, China has also agree to lower or remove retalitory tariffs that were placed on American exports.

Among the goods frequently exported to China from the US that have been impacted are:

• Crude oil
• Agricultural machinery
• Large-engine cars
• Chicken/poultry
• Pork
• Soy
• Beef

While China has removed many tariffs on US products, expoters should consult with an seasoned freight forward.

How Much Does it Cost to Import Goods From China?

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.

• Customs duties (import taxes)
• Section 301 tariffs 
• Executive Order Tariffs
• Reciporcal Tariffs
• Antidumping/countervailing duties (AD/CVD)
• Merchandise Processing Fees
• Harbor Maintenance Fees
• Shipping costs
• Cargo Insurance
• Customs Brokerage

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. 

Calculating Customs Duties and Section 301 Tariffs

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:

1. Find Your Product’s HTS Code: A product’s Harmonized Tariff Schedule (HTS) code serves to identify the commodity and the required import tax upon entry. 
2. Confirm the Duty Rate: The assigned duty rate is generally a percentage of the product’s value based on weight or quantity. 
3. Do the Math: First determine the total value of your shipment based on how the rate is calculated. Multiply the total by the percentage rate to determine owed duties. 

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: 

• 3,000 kg (Weight) × $6 (value per kg) = $18,000 (Total Value) 
• $18,000 (Total Value) × 4.3% (Duty Rate) = $774 (Owed Duties)

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 now other significant tariffs to consider.

• Section 301 Tariffs
• AD/CV Duties
• Reciprocal Flat Rate Tariffs

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.

When Are Section 301 Tariffs Applied?

Understanding when and how Section 301 tariffs are applied is crucial for importers.

Section 301 tariffs, introduced in 2018, impose additional duties—ranging from 25% to 100%—on certain goods imported from China to the United States. Determining whether a product is subject to these tariffs begins with identifying the correct Harmonized Tariff Schedule (HTS) code, typically handled by a licensed customs broker.

Once the primary HTS code is confirmed, the broker must also examine supplemental codes listed in Chapter 99 of the HTS, which are issued by the U.S. International Trade Commission (USITC). Goods subject to Section 301 duties are typically categorized under heading 9903. These Chapter 99 provisions also include any applicable tariff exclusions.

It’s important to note that tariffs under Chapter 99 are added on top of the base import duty. For example, suppose a product with a dutiable value of $18,000 has a base tariff rate of 4.3%, resulting in a basic duty of $774.

If that same product is also subject to a 25% Section 301 tariff, the calculation would be:

• Base Duty: $18,000 × 4.3% = $774
• Section 301 Tariff: $18,000 × 25% = $4,500
• Total Tariffs Owed: $774 + $4,500 = $5,274

Because Section 301 duties are applied in addition to the regular tariff, understanding these layered costs is essential for accurate pricing, budgeting, and compliance. For this reason, working closely with an experienced customs broker is highly recommended to ensure proper classification and minimize the risk of costly errors.

Anti-Dumping/Countervailing Duties (AD/CVD):

In addition to normal HTS tariffs and Section 301 tariffs, if specific products are determined by the U.S. Department of Commerce (DOC) and the International Trade Commission (ITC) to be dumped (exported at below normal value) or to have received export subsidies, the United States may also impose anti-dumping duties (AD) or countervailing duties (CVD) on these products.

• AD/CVD are additional taxes imposed on specific products and countries/regions (e.g., China).
• These rates are determined through particular investigations and are subject to periodic review.
• If your imported products are subject to AD/CVD measures, these duties will be imposed in addition to the basic and Section 301 tariffs (if applicable). AD/CVD rates are typically expressed as a percentage but may occasionally be set as a fixed amount per unit of weight or quantity.

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: 

• Merchandise processing
• Harbor maintenance
• Federal excise taxes

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.