Guide to Tariffs, Customs, Duty, and Taxes // How to Import your Product Easily
By now, you should be aware that the United States has imposed a tariff of 10-25% on approximately $550 billion of goods exported from China to the US. There is considerable uncertainty surrounding the tariffs, but we will provide guidance on how to navigate them as effectively as possible. Even before the current trade dispute, buyers still had to pay duties and customs fees on a wide range of products shipped into the United States.
Please note that this section is written from an American perspective; however, the process of determining tariffs and duties is relatively similar to that of most Western countries and the European Union.
Figuring out the HTS Code
One of the big things you need to know about your product is the HTS Code. HTS stands for Harmonized Tariff Schedule, and the US system determines what tariffs are placed on a product. Therefore, any product imported into the US must be accurately classified by its Harmonized System (HTS) code, and tariffs will be applied accordingly. The HTS code is based on the International Harmonized System, a globally recognized trade classification system.
This part can be challenging, especially if it's a new product; it requires a significant amount of research to identify the correct product category. Of course, if you're importing an existing product, then it should have a classification. However, if you are importing a new product that does not currently exist in the market, it can be done. The easiest way to do this is to look for similar items or items made of the same material.
You can freely search the US's database here: https://hts.usitc.gov/
Ultimately, you should have a ten-digit HTS number (####.##.####) that corresponds to your product. Now that you have that figured out, you can look up the tariffs.
Looking up the Tariffs of your product
The tariff for each product is for importing into the United States; however, almost every other country publicly posts the rates on a publicly available government website. Generally, the rates will be set by the department or ministry responsible for trade. You can use the same HTS tool to look up your tariffs as you did to look up the HTS code: https://hts.usitc.gov/
If you are importing from China into the United States, you can view the complete list of affected products and their tariffs here [PDF Warning]: https://ustr.gov/sites/default/files/2018-13248.pdf
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Existing tariffs and Duty Taxes
Please note that existing duties and fees still apply to most products, in addition to the new tariffs. You should find the existing duties using the same link to the HTS database. This database has the duties listed.
Screenshot of the HTS look tool.
In the above, you'll notice multiple columns; from left to right, they are
Heading/Subheading, which is the HTS Number (4, 6, and 8 digits) Stat Suffix, combined with the Heading/Subheading, is the ten-digit HTS Number.
Article description
Unit of Quantity
Tariff Rates
General Rate of Duty
Special Rate of Duty
Column 2 Rate of Duty
This is just a quick summary; the complete in-depth guide can be found here [PDF Warning] http://www.usitc.gov/documents/hts_external_guide.pdf
Regulatory issues
Looking up regulatory issues tends to be the most challenging aspect of the validation step. Unfortunately, there is no centralized database listing the regulations required for each product.
The US's best resource is Customs and Border Protection (CBP), which publishes guides across various products and classifications. Are you unsure whether what you are importing is a bolt or a screw? They have a guide for that. If you imported mittens, figure out how they are made, as they are either crocheted or knitted, and then you'll be surprised! You're getting tariffs! You're going to want to sit down for this one. Ready? Discover this groundbreaking decision on the distinction between candle holders and decorative glass!
To add further complications, agencies such as the FDA and FCC regulate the importation of goods but defer enforcement to CBP. If you are importing any item related to health or food, it's most likely subject to FDA approval or regulations. If you import an electronic item, particularly one that emits radio waves, including but not limited to cellular, Wi-Fi, or Bluetooth devices, you need to obtain FCC approval. If you are importing natural food items, the Department of Agriculture regulates them, but they may also be subject to the FDA. More agencies have regulations, but the FCC and FDA are the two we encounter the most. Ultimately, it's up to you to research and find out the regulations.
The CBP is the agency responsible for clearing goods for export, so it is the final authority on this issue. If unsure, you can message the CBP and request a letter to classify or clarify the goods. However, the government and CBP are now shut down and not responding to requests. Furthermore, even when the agency is open, there is no guarantee that they will respond; if they do, the response can take weeks. Therefore, we recommend that you research this yourself.
You can visit Customs and Border Protection's website to view the complete list of guides. https://www.cbp.gov/trade/rulings/informed-compliance-publications
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