How are US customs duties calculated?

US customs duties are calculated on the CIF (Cost + Insurance + Freight) value of your goods using the rate in the Harmonized Tariff Schedule (HTS). For China imports in 2026, three layers apply: (1) the standard HTS Column 1 General rate (0–37.5%), (2) Section 301 China-specific tariff (0%, 7.5%, or 25% on FOB value), and (3) the IEEPA China-wide tariff (currently 20% on FOB value). Total effective duty rates on Chinese goods typically range from 7.5% to 80%+ depending on product category.

What is the Merchandise Processing Fee (MPF)?

MPF is a CBP fee charged on formal entries (shipments over $2,500). It is calculated as 0.3464% of the CIF value with a minimum of $32.71 and a maximum of $634.62 per entry. MPF is charged per entry, not per shipment — if you consolidate two orders into one customs entry, you pay one MPF. On a $10,000 CIF shipment, MPF = $34.64. On a $200,000 shipment, MPF caps at $634.62.

What is the Harbor Maintenance Fee (HMF)?

HMF is a CBP fee charged on sea freight imports only (not air freight). It is calculated as 0.125% of the CIF value with no minimum or maximum cap. On a $50,000 CIF sea shipment, HMF = $62.50. HMF is collected at the port of entry and goes to the Harbor Maintenance Trust Fund for US port dredging and maintenance.

How does Section 301 differ from standard HTS duty?

Standard HTS duty (Column 1 General rate) applies to all imports regardless of country of origin. Section 301 is a China-specific additional tariff authorized under the Trade Act of 1974. It applies only to goods manufactured in China. Section 301 is calculated on FOB value (not CIF), while standard duty is on CIF. List 1/2/3 goods (industrial, tech) carry 25% Section 301; List 4A goods (most consumer products) carry 7.5%; some items are excluded. Always check exclusion lists at USTR.gov.

What is the IEEPA tariff on China imports?

The IEEPA (International Emergency Economic Powers Act) tariff is a 20% tariff on nearly all Chinese goods as of April 2026, imposed via executive order citing national emergency authorities. Unlike Section 301 (which varies by HTS code), IEEPA applies broadly. It is separate from and stacks on top of Section 301 and standard HTS duty. During the period April 10–May 13, 2025, the IEEPA rate spiked to 145%; it was then reduced to 30% during a negotiation pause and later settled at 20%. Always verify the current rate at CBP.gov.

How do I find the HTS code and duty rate for my product?

Use the USITC HTS search at hts.usitc.gov to look up your product. Search by product description, then identify the 10-digit HTS code. The "General" rate in the duty rate column is your applicable rate for most imports. For China goods, also check the Section 301 lists at USTR.gov to determine if your HTS code faces 7.5%, 25%, or an exclusion. When in doubt, obtain a binding ruling from CBP — it is legally enforceable and protects you in audits.

What happens if I use the wrong HTS code?

Using an incorrect HTS code (whether intentional or accidental) can result in: (1) under-payment of duties with penalties up to 4× the unpaid duty plus interest, (2) CBP liquidation of your entry at a higher rate months after import, (3) potential fraud charges if misclassification is deemed willful. If you discover a misclassification, you can file a prior disclosure with CBP to reduce penalties significantly. Always use a licensed customs broker for accurate classification.

Can I reduce my duty rate by changing how the product is classified?

Yes — HTS reclassification is a legal strategy used by experienced importers. Some products can be classified under lower-duty HTS codes if the product description genuinely supports it. A customs attorney or licensed broker can advise on defensible reclassifications. You can also apply for a binding ruling from CBP before importing to get official confirmation of your classification. This is different from misclassification — it is a legitimate optimization based on accurate product description.

🏛️ Import Duties & Taxes

US Customs Duty Calculator — Full Breakdown

Use our us customs duty calculator to calculate complete US customs duty with HTS rate, Section 301, MPF, HMF, and effective rate for any China import shipment.

Updated: 2026-04-14

Planning Reference

Rates Last Reviewed April 2026

Reference Basis

Based on published HTS, CBP, USTR, and other official tariff guidance in effect at the last review date.

Planning Note

Use this for planning. Final duty liability depends on HTS classification, origin, exclusions, non-stacking rules, and customs review.

Secondary opportunity

us customs duty calculator
High SERP difficulty

Invoice / FOB Value USD Total FOB value on the commercial invoice in USD.

International Freight Cost USD Sea or air freight cost from China to US port of entry.

HTS Duty Rate % The Column 1 General duty rate for your HTS code. Find it at hts.usitc.gov.

Section 301 Tariff Rate Additional tariff on Chinese goods. Check ustr.gov for your specific HTS code.

China-wide IEEPA Tariff China-wide tariff added via IEEPA executive orders, on top of Section 301. Current rate is 20% as of April 2026.

How US Customs Duty Is Calculated in 2026

US customs duty on China imports involves three separate tariff layers that all apply simultaneously:

Tariff Layer	Rate	Basis	Applies To
HTS Column 1 General	0–37.5%	CIF value	All countries
Section 301	0%, 7.5%, or 25%	FOB value	China only
IEEPA (China-wide)	20% (current)	FOB value	China only

Total effective tariff burden on most Chinese consumer goods: 27.5–62.5% on top of the product cost.

The Three CBP Fees You Must Include

Beyond duties, three fees are charged on every formal customs entry:

Fee	Rate	Min	Max	Sea/Air
MPF (Merchandise Processing Fee)	0.3464% of CIF	$32.71	$634.62	Both
HMF (Harbor Maintenance Fee)	0.125% of CIF	None	None	Sea only
Customs Broker Fee	Flat	~$150	~$350	Both

MPF and HMF are federal fees charged by CBP, not the broker. The customs broker fee is separate.

Worked Example: Importing 500 Units of Power Tools

Item	Calculation	Amount
FOB Price	$18/unit × 500 units	$9,000
Sea Freight	—	$850
Insurance	($9,000 + $850) × 0.5%	$49
CIF Value		$9,899
HTS Duty	$9,899 × 3% (HTS 8467)	$297
Section 301	$9,000 × 25% (List 2)	$2,250
IEEPA	$9,000 × 20%	$1,800
MPF	$9,899 × 0.3464%	$34.29
HMF	$9,899 × 0.125%	$12.37
Broker Fee	—	$250
Local Delivery	—	$375
Total Duty + Fees		$5,018
Total Landed Cost		$14,917
Landed Per Unit	$14,917 ÷ 500	$29.83 vs. $18 FOB

Total customs burden: 55.8% above FOB on this power tool example — primarily driven by Section 301 (25%) and IEEPA (20%).

Duty Rate Reference by Major Category

Product Category	HTS Duty	Section 301	IEEPA	Total Rate
Consumer electronics	0%	7.5%	20%	27.5%
Computers / laptops	0%	25%	20%	45%
Furniture	0–5.3%	25%	20%	45–50%
Apparel & footwear	12–37.5%	7.5%	20%	39–65%
Industrial tools	3–5%	25%	20%	48–50%
Toys & games	0%	7.5%	20%	27.5%
Steel / aluminum	0–3%	25%	20%	45–48%
Medical devices	0%	0–7.5%	20%	20–27.5%
Automotive parts	2.5%	25%	20%	47.5%

Rates as of April 2026. Section 301 rates reflect current lists. Verify at hts.usitc.gov and USTR.gov.

Section 301 List Guide

Lists 1, 2, 3 (implemented 2018–2019): Industrial goods, steel, tech components → 25% Section 301
List 4A (September 2019): Consumer goods, electronics, apparel → 7.5% Section 301
Solar cells / panels: 50% Section 301 (increased 2024)
Electric vehicles: 100% Section 301 (increased 2024)
Exclusions: Some HTS codes were temporarily excluded from Section 301; check USTR.gov exclusion portal for your specific code.

How to Minimize Your Duty Burden (Legally)

Verify HTS classification: A product classified under a lower-duty code (with accurate description) can save thousands per year.
Check Section 301 exclusions: USTR grants temporary exclusions on specific HTS codes — worth checking before each shipment.
First-sale valuation: If you buy through a trading company, CBP may allow you to declare duties on the factory price (first sale) instead of the trading company price (second sale), reducing your dutiable value.
Bonded warehouse: Store goods in a CBP bonded warehouse before deciding whether to import — duties only apply when goods are formally entered.
Foreign Trade Zone (FTZ): Manufacturing in an FTZ can defer or reduce duty if the finished product has a lower duty rate than the components.
Country of origin shifting: If substantial transformation occurs in a third country (Vietnam, Mexico), goods may no longer be subject to China-specific Section 301 or IEEPA tariffs — but CBP scrutinizes this closely.

Tips for China Importers

Look up your HS code first. Your HTS/HS code determines your duty rate. Use hts.usitc.gov (US), trade.gov.uk/tariff (UK), or cbsa-asfc.gc.ca (Canada) — not your supplier's guess.
Check for Section 301 exemptions. Some products have granted exclusions at ustr.gov. These can eliminate the additional 7.5–25% tariff entirely. Verify before every order.
First Sale Valuation can lower your duty base. If buying through a trading company, CBP may allow you to declare the factory price (not the middleman price) as the dutiable value — ask your customs broker.
Get a Binding Ruling for anything uncertain. CBP can issue a written classification ruling at no charge through its binding-ruling process. It can help when your product classification is unclear.
Keep import records for 5 years. CBP can audit any entry up to 5 years post-import. Store your commercial invoices, packing lists, and entry summaries.