China Tariffs Guide // How to Find Tariffs and Calculate Customs Fees
The latest tariffs on Chinese goods impact $550,000,000,000 ($550 billion!) worth of goods imported into the United States. The best way to avoid tariffs is to look beyond China for your next product. There are many options, but Vietnam may be the best option for many.
Please note: This section is written from an American perspective; however, finding tariffs and duties is relatively similar to most Western countries.
START WITH 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 HTS code, and the USCBP will apply the tariffs 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 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.
FINDING THE TARIFFS ON YOUR PRODUCT
This is for importing into the United States; however, almost every other country publicly posts the rates on a publicly available government website. Primarily, the rates will be determined 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 full list of affected products and their tariffs here [PDF Warning]: https://ustr.gov/sites/default/files/2018-13248.pdf
Are you looking to avoid the tariffs on Chinese goods? Sourcing from Vietnam is one of your best options. Cosmo Sourcing has been helping clients find suppliers in Vietnam since 2013 and is one of the only sourcing companies that can source from Vietnam and China. If you’re interested, check out our Vietnam Sourcing page or reach out directly to us at info@cosmosourcing.com
DON’T FORGET THE EXISTING DUTIES
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 duty listed.
Screenshot of the HTS lookup tool.
In the above, you’ll notice multiple columns; from left to right, they are
Heading/Subheading, 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 full in-depth guide can be found here [PDF Warning] http://www.usitc.gov/documents/hts_external_guide.pdf
HOW TO FIND REGULATORY ISSUES WITH YOUR PRODUCT
Identifying regulatory issues tends to be the most challenging aspect of the validation step. There is no centralized database for the regulations required for each product.
The US’s best resource is Customs and Border Protection (CBP), which publishes several guides across a huge range of products and classifications. Are you unsure whether what you are importing is a bolt or a screw? They have a guide for that. Are you importing mittens? Figure out how they are made, because if they are crocheted or knitted, 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 anything relating 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, and therefore, 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, now, the government and CBP are shut down and are not responding to any requests. Even when the agency is open, there is no guarantee that it will respond; if it does, the response can take weeks. Therefore, we recommend that you research this yourself.
You can go to Customs and Border Protection’s website and see the full list of guides. https://www.cbp.gov/trade/rulings/informed-compliance-publications
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