When importing goods from China to the United States, one of the most important considerations is the import tax from China to US. These charges can significantly impact your landed cost, profit margins, and pricing strategy. With new regulations in 2025, the import process has become more complex, requiring importers to have a detailed understanding of tariffs, customs procedures, and compliance requirements.This guide breaks down the types of taxes, how they are calculated, and what you can do to manage costs effectively.
1.What is Import Tax?
Import tax—also called customs duty—is a tariff imposed by the United States government on goods entering the country. Its purpose is to:
- Protect domestic industries from foreign competition
- Generate revenue for the government
- Ensure imported products comply with safety and quality regulations
The import tax from China to US is determined using the Harmonized Tariff Schedule of the United States (HTSUS), which classifies goods and assigns each a duty rate based on its HS code.
2.Main Components of Import Costs
When you bring goods from China into the US, you might encounter more than one type of cost. These typically include:
1.Customs Duty :
The basic tax calculated on the declared value of goods.
2.Section 301 Tariffs :
Extra duties on Chinese goods as part of trade policy measures.
3.Merchandise Processing Fee (MPF) :
Charged on most imports to cover customs processing.
4.Harbor Maintenance Fee (HMF) :
Applied to ocean shipments entering US ports.
5.Excise Taxes :
Additional charges on specific products like alcohol, tobacco, or fuel.
3.2025 Changes in Import Tax Rules
2025 has brought some of the most significant changes to the import tax from China to US in decades:
1.End of De Minimis Exemption for China:
Shipments under $800 from China are no longer duty-free (effective May 2, 2025).
2.Global End of De Minimis:
Starting August 29, 2025, this exemption will end for all countries.
3.Stacked Tariffs:
Chinese goods may face multiple layers of tariffs—base duty, Section 301, and additional emergency measures—leading to total rates exceeding 100% for some products.
4.Tighter Transshipment Controls:
Customs is cracking down on goods routed through third countries to avoid tariffs.
4.How to Determine Your Duty Rate
To calculate your duty rate, follow these steps:
1.Identify the Correct HS Code
Every product has a unique classification code. Using the wrong code can result in incorrect taxes or penalties.
2.Check the Current Duty Rate
Look up your HS code in the HTSUS to find the base duty percentage.
3.Add Applicable Tariffs
For goods from China, include Section 301 tariffs and any additional trade measures.
4.Calculate the Duty Amount
Use the formula:
Import Duty = Customs Value × Total Duty Rate
Example:
If you import machinery with a customs value of $50,000 and a total duty rate of 15%, your import duty will be:
$50,000 × 0.15 = $7,500
5.Customs Value – What Counts?
The customs value is generally the transaction value of the goods—what you paid your supplier—excluding shipping and insurance for US-bound transport. However, certain costs like packing, assists, and royalties may be added.
6.Customs Clearance Process
- Commercial Invoice
- Packing List
- Bill of Lading or Air Waybill
- Arrival Notice from your carrier
- Importer Security Filing (for ocean shipments)
Your customs broker files the entry summary with the necessary codes and values.
All import taxes must be paid before goods are released.
CBP may physically inspect your shipment to verify compliance.
7.Entry Types
- Informal Entry: For goods valued under $2,500 (limited categories).
- Formal Entry: Required for goods over $2,500 or for restricted merchandise.
Given the new rules, most shipments from China will now require formal entry due to value and tariff considerations.
8.Common Mistakes Importers Make
1.Using Incorrect HS Codes :
Leads to overpaying or underpaying duties.
2.Misdeclaring Origin :
Claiming goods are from another country when they are from China can lead to penalties.
3.Underestimating Total Tariffs :
Not accounting for Section 301 and other add-on taxes.
4.Relying on Old Regulations :
Many importers still assume the $800 rule applies, which can result in surprise bills.
9.Strategies to Reduce Import Tax from China to US
Ensure you use the correct HS code that applies to your product’s actual specifications.
Decide whether you or your supplier will be responsible for duties (e.g., DDP vs. FOB).
If you re-export imported goods, you may be eligible for refunds.
Consolidating orders can sometimes reduce per-unit costs, even if the duty rate is the same.
If tariffs on Chinese goods are too high, evaluate sourcing from countries with lower duty rates.
10.Estimated Timeline for Clearance
| Shipment Type | Average Clearance Time |
|---|---|
| Air Freight | 1–3 days |
| Ocean Freight (FCL) | 3–5 days after arrival |
| Ocean Freight (LCL) | 5–7 days after arrival |
Conclusion
The import tax from China to US in 2025 is no longer just a small percentage you can ignore—it is a major factor in your total landed cost. With the elimination of the de minimis exemption, stacked tariffs, and tighter customs controls, importers need to be proactive. Correct classification, accurate valuation, and strategic planning are essential for staying profitable in this new trade environment.
Ask for a quote
If you want expert guidance and peace of mind, our team is ready to assist.
TJ China Freight offers tailored solutions to help businesses of all sizes ship more reliably from China.
FAQs
Q1: Are all products from China taxed the same?
No. Duty rates vary widely depending on your product’s HS code. For example, textiles may have higher rates than electronics, and certain luxury items can exceed 20% in base duty before additional tariffs.
Q2:What is Section 301 and why does it matter?
Section 301 tariffs are additional duties imposed on Chinese goods as part of trade measures. These can range from 7.5% to over 100% depending on the product category.
Q3:Does the $800 de minimis rule still apply?
Not for China. As of May 2, 2025, goods from China and Hong Kong under $800 are no longer exempt. From August 29, 2025, this exemption will end for all countries.
Q4:Can I avoid paying tariffs by shipping through another country?
Not legally. CBP has implemented stricter rules to verify the true country of origin. Misdeclaring origin can lead to fines, seizure, and legal penalties.
Q5:Can I get a refund on duties if I export the goods again?
Yes. The US Duty Drawback Program allows you to recover up to 99% of duties paid if the goods are exported or destroyed under CBP supervision.