If you have any question about import duty from China to the USA, you’ll find the answer right.
This guide covers both basic and advanced concepts about the import duty.
Keep reading to learn more.
- What is Import Duty?
- What is the Difference Between US Import Duty and Customs Duty?
- What Products can you Import from China to the USA?
- How do you know if you have to Pay Import Duty from China to the US?
- What are the Types of US Import Duties from China?
- How much is Import Duty from China to the USA?
- What is HS Code?
- How do you Check the HS Code for Import Duty from China to the US?
- How do you Calculate Import duty for the US from China?
- What is the US Import Duty Calculator?
- How do you Estimate the US Import Duty from China using an Online Calculator?
- What is the Difference Between Formal and Informal Entry Shipments from China to the US?
- Are there Custom Duty Charges when Buying from Aliexpress and Alibaba in the USA?
- How Long Does Customs Clearance take for Shipments from China to the USA?
- What is the US Customs Clearance Process from China?
- Which Documents do you need to Clear US Import Duty and Taxes from China?
- Will you Pay Import Duty for Door to Door Shipping from China to the USA?
- How do you Clear Customs after Importing from China to the US via the Internet?
- Can you Avoid Import Duty when Importing to the USA?
- How do you Pay US Import Duty from China?
- What is a US Customs Bond?
- How does an Annual Bond Compare to a Single Entry Bond?
- What are the Things to Keep in Mind when Importing from China to the US?
- What Happens when you Fail to Pick your US Shipment from China On Time?
- What are the US Customs Fines?
- Do you need a China to US Import Duty Agent?
- How can you Reduce the US Import Duty from China?
- What are the Factors that Influence US Import Duty from China?
- Why should you Consider Bansar to help you Import from China to the US?
What is Import Duty?
When you import goods from China to the USA, you must pay some tax for the goods.
Import duty is the sum charged on imported goods.
The Central Border Program (CBP) customs collects the taxes and duties depending on the set regulations.
Most countries implement import duties as a way to raise revenue and safeguard young growing industries.
It is also used to penalize other exporting countries by charging high import duties.
What is the Difference Between US Import Duty and Customs Duty?
Customs duty is a general term that includes all the taxes collected on goods either brought into the country or those moving out of the country.
Import duty, on the other hand, is specific on goods moving into the country.
It is the revenue generated by the government on imports.
The similarity here is that while import duty is specific on incoming goods, customs duty refers to import duty and export duty.
What Products can you Import from China to the USA?
China is an increasing economic hub that offers world consumers an array of product choices.
The following are some profitable products you can import from china.
Clothing is one of the basic human needs required in day-to-day life.
China produces quality, original and cheap clothes.
With the high population in the US, importing clothes would be profitable due to the high demand.
· Motor Vehicles
Vehicles’ global demand increases with each rising day.
With many assembling companies located in china, importing quality vehicles will be cheap and convenient.
Consequently, humans have different choices and tastes when it comes to the type of car they use.
China offers sleek tastes that can supplement vehicles produced in the US.
The demand for electronics in the US is high.
You can make good profits by importing both cheap and expensive electronic products from china.
· Pharmaceutical Products
We all get sick at some point.
Importing drugs and associated products is profitable due to the high demand.
China excels in producing quality and affordable pharmaceutical products; importing these products will surely earn you a fortune.
US imports from China
Other products that are profitable and which you can import from china to the US include;
- Foods and foodstuff
- Industrial parts
- Cosmetics and nutraceuticals
How do you know if you have to Pay Import Duty from China to the US?
If you are importing goods from China, you are eligible to pay import duty.
However, some exempted goods do not qualify for import duty.
Goods that are donations from china to the US do not pay import duty.
You also don’t need to pay duty for goods whose value less than $2500.
Needless to say, you can always inquire from the Central Border Patrol if the goods you want to import are dutiable.
What are the Types of US Import Duties from China?
The following types of import duties apply when you import goods from China to the USA;
· Basic Duty
This is the basic duty rate which is applicable for all imports from China to the US.
The rates vary depending on the type and value of the product that you’re importing.
· Antidumping Duty
Antidumping duty is an extra charge that countries place on imported goods that are similar to those produced locally.
The US charges antidumping duty on products from china to avoid unfair competition for local producers.
Note that this duty charge is applicable only when the price of the goods is below the local market price.
· Countervailing Duty
When your imports from China are similar to those made locally, customs will charge you countervailing duty.
This is different from antidumping duty.
The latter is applicable only when the goods you import are similar and lower priced.
Apart from the above duties, you may also need to pay a federal exercise for specific products such as tobacco and alcohol.
Other charges such as the merchandise processing fee and harbor maintenance fees may also apply.
How much is Import Duty from China to the USA?
The total duty that you’ll pay for imports from China to the USA depends on the value of the products you’re importing.
Generally, goods below $800 are exempt from duty by the customs border protection.
Meaning, you won’t be paying any money to CBP if you import any commodities whose value is $800 and below.
These are considered duty free.
For goods above $800, you will pay the applicable duty rate.
In this case, the rates will depend on the product category according to the Harmonized system tariff (HS) code.
CBP uses the HS code to determine how much importers pay for imports from China.
You can check the applicable duty rates for your product on the official website for the CBP.
Please note that import duties in the US will also depend on the number of products you’re importing.
This is in the case of formal and informal entry goods.
Generally, the basic US import duty rate was at 10% before 2019.
The rate currently used after 2019 is 25% on the value of the imported goods.
These rates are, however, subject to change depending on the CBP.
It would be perfect to check the rates in play before importing any particular product.
What is HS Code?
HS is an abbreviation that stands for Harmonized System.
It is a six-digit international identification code that is used to identify and group goods.
The code is such that the first 2-digits aid identifies the chapter where goods are classified.
The next two digits (HS-4) are used to determine the groups within the chapter.
The last two digits (HS-6) are even more specific.
The six HS code system is used internationally by most countries except few countries that still use older HS code systems.
How do you Check the HS Code for Import Duty from China to the US?
HS code search
The process is pretty simple.
Simply head over to the official Harmonized Tariff Website.
In the dialogue box indicated ‘enter your search query,’ type a keyword that you want to search.
The keyword can be the name of the product or random numbers that you wish to search.
After that, click on search.
If your inquiry is correct and there are products for the search, you will see a list of probable products and their rates.
If the search is not valid, the website will indicate no rates found for the search.
Alternatively, you can search for the commodity using a random number.
Each number will indicate possible products and applicable rates.
How do you Calculate Import duty for the US from China?
Different products from China pay different amounts of import duty in the US.
The process is direct and involves minimal computation.
First, locate the HS code associated with your product.
Ensure the code is specific to the product you are importing.
Secondly, choose the appropriate category and subcategory of the product.
Locate the duty applicable to the product, and finally, multiply the rate by the value of the item.
If you import products of different categories, you will have to calculate each product’s import duty separately.
It is worth noting that goods confined in the same container can attract different import duty amounts depending on their HS code.
What is the US Import Duty Calculator?
The US duty calculator is a useful tool for importers.
Also, the tool provides rough estimates to be paid on particular units imported.
The interface provides details on the importing country, the exporting country, and the product you’re importing.
You simply need to select the importing country and choose the product and the value to be imported.
This will give you a clear estimate of the duty to pay for your imports.
How do you Estimate the US Import Duty from China using an Online Calculator?
Lucky for you, the process is pretty simple. Just find a reliable online duty rate calculator and follow the below procedure.
- From the drop-down list, select your country of import.
- The next part is where you are importing to. This is simple as the calculator currently only allows imports to the US. You just use the default selection.
- The next step is the commodity you are importing field. Here, type initials of the commodity you are importing, a list of related codes will appear. Simply choose the product you are importing.
- Alternatively, from the system, click on the browse code link and choose your category.
After doing everything right, the system will either calculate the applicable duty rate per unit or prompt “estimated to be exempt from duty.”
If your goods qualify for import duty, a dialogue box will appear where you input the shipment value.
On inputting the value, the import duty calculator will provide an estimated value to pay.
However, you should know that these are only estimates.
The US customs office provides the actual duty that importers should pay.
What is the Difference Between Formal and Informal Entry Shipments from China to the US?
Before importing your products, you must first determine the type of entry filled by Customs and Border Protection.
Formal entry applies when the total cost of goods you import to the US is above $2500.
However, if your business is old enough in operation, you can adopt an annual import duty subscription.
This is economical as they receive their goods before paying duties and bonds.
You accumulate the bonds and pay later as a lump sum.
On the other hand, informal entry is applicable for imports less than $2500.
It is cheaper and economical for your business.
However, the bottom line is, you should always remain on the good books with the law.
You can avoid wasting valuable time explaining your mistakes to the authorities.
Finally, you should note that customs can enforce custom duties whenever necessary.
Are there Custom Duty Charges when Buying from Aliexpress and Alibaba in the USA?
Yes, there are.
Buying from Aliexpress and Alibaba is convenient as it provides an array of product choices.
However, just like importing from other suppliers in China, importing products from Alibaba and Aliexpress attracts specific customs duty.
The chargeable custom duty is dependent on the classification of the product.
Each product should have an applicable rate of duty chargeable.
Note that the applicable duty is dependent on the products you’re country and quantity.
If you’re importing a small quantity, these online suppliers will opt for express shipping.
In this case, customs won’t charge you.
For large quantity orders, get a reliable customs broker to help you calculate all import costs, including duties from china to your destination in the US.
Remember, no matter where you’re importing from, the product will always affect the custom duty rates.
Different products attract different duties in the US.
How Long Does Customs Clearance take for Shipments from China to the USA?
This depends on several factors.
Nonetheless, customs can hold your goods as long as they deem fit.
There is no specific duration that customs can take before clearing your shipment.
The whole process depends on the aspects that surround the package.
For example, when customs are awaiting confirmation from the importer, the shipment can wait until customs receives the right confirmation.
Another instance would be where there are issues surrounding payments and paperwork to the customs.
Finally, if the goods have quality issues, customs can take longer verifying the goods before clearing them.
To speed up the clearing process, it is your sole obligation to ensure you comply with all customs regulations.
This way, you will save on time and costs.
What is the US Customs Clearance Process from China?
Once the cargo has arrived in the US from China, the goods are unloaded by the carrier.
After that, necessary procedures are followed to take the goods out of the customs import area.
The customs clearance process is inevitable, tiresome, and overwhelming.
The following procedure is applicable for shipment clearance.
- Unloading packing lists and commercial invoice
- The customs brokerage partner will confirm if the details match the consignment.
- Customs will receive HTS classification of goods.
- Customs brokerage partner will file entry summary.
- Forward duties owed
Other than the process, you should present the right documents to customs.
After that, the shipment will undergo a series of examinations to prove their credibility and conformity to CBP standards.
The examinations include;
- X-ray exams to check the contents of the container.
- Tail gate exams that involve opening the tail end of the container to inspect the content physically.
- Partial Exams involves the CBP selecting random cartons for inspection.
- Intensive exam- this is the most comprehensive exam and takes at least 7 days. It involves CBP moving the container to a select warehouse and physically examining every product in the container.
- United States department of agriculture exam- applicable for food staff and agricultural products. The CBP will take a sample and take to the lab. In this exam, they will place a hold on the product to check for pests or even diseases.
- The food and drug administration exam is the final exam that ensures all foods transported to the US are safe for consumption.
Which Documents do you need to Clear US Import Duty and Taxes from China?
For a seamless customs clearance process when importing from china to the USA, ensure you provide all the necessary import documents.
The documents include;
This is a list showing the weights of the package or container and the contents inside.
· Arrival Notice
An arrival notice provided details about the arrival and is issued by the carrier’s agent to the consignee.
It hastens the process of clearance.
A commercial invoice contains details about the shipment.
These include the country of import, the buying price, clearance number, and the product description.
The bill of lading shows the goods in the form of a list with their description.
You may also need an insurance certificate, hazardous goods certificate, import license as well as an inspection certificate.
Will you Pay Import Duty for Door to Door Shipping from China to the USA?
Well, it depends on the incoterms agreement.
Door to door delivery is usually covered by two incoterms.
These are delivery at place (DAP) and delivery duty paid (DDP).
For Delivery at the place, you will not pay for the door to door shipping.
Instead, the seller would take charge of transportation costs until the goods reach your preferred delivery place.
On the other hand, you will pay for the door to door shipping on a delivery duty paid terms.
Here, your seller is not liable for the transportation cost.
It is crucial to agree on the incoterms with your seller to be sure of what is required of you before deciding to import.
This way, you will avoid delays and huge penalties.
How do you Clear Customs after Importing from China to the US via the Internet?
The biggest challenge for importers is the paperwork process needed during clearance.
With the widespread use of the internet, it is common to place orders online and deliver without necessarily signing any agreement.
Unfortunately, when dealing with customs, you can only clear your imported goods by manually filling forms.
This, therefore, implies that you cannot clear with customs online.
In cases where you cannot be physically present to clear with CBP, you need not worry.
You can hire a reliable customs broker to take care of the paperwork.
The broker, however, will charge you a fee for the service offered.
Can you Avoid Import Duty when Importing to the USA?
However, this will depend on the specific type of commodity you are importing.
In the US, some specific products are exempted from import duty.
Depending on the customs policies, products such as donations and other foodstuffs can be exempted from paying import duty.
Also, importing products less than $800 can exempt you from paying duty.
Before importing, it is vital to verify with customs before importing such goods.
How do you Pay US Import Duty from China?
First things first, you can pay import duty in two ways.
You can either pay before Delivery or on Delivery.
If you’ve decided to pay your duty on Delivery, US customs will inform you or your courier.
They will contact you and let you know how much you need to pay and when it’s due.
This way, there won’t be any need to calculate unless you feel a mistake has been made.
Conversely, you can pay for your goods before they arrive in the US.
In this case, you can ask for your invoice from the supplier and inform CBP of the same.
Several payment options are available for this.
Mostly, you can pay your duties via PayPal, cash, or bank transfer.
What is a US Customs Bond?
A bond is a form of a binding agreement between two or more parties.
It serves as a security for a specific agreement.
Us customs bond is always between the importer, Central Border Protection, and the surety company.
The purpose of the customs bond is to ensure that CBP is paid the agreed amount and that the importer follows the stipulated importation rules and regulations.
In cases where you, as an importer, fail to pay CBP, the surety company will pay the deficit amounts.
To get a customs bond, simply find a trusted broker and agree on terms.
How does an Annual Bond Compare to a Single Entry Bond?
If your business has been in operation long enough, you will benefit significantly from an annual bond.
An annual bond is charged once and allows you to import into the US using multiple importation ports.
The yearly bond is renewable and can only seize to be in use if the importer cancels it.
The annual bond covers up to $50,000.00 and is charged at the cost of $450.00.
Moreover, companies can purchase larger bonds and apply for an extension.
Single bond, on the other hand, is applicable where you import once or twice.
You can use it to import firearms and other regulated commodities or import one-time end value products.
Not all businesses need bonds to import.
Personal businesses can import without necessarily using custom bonds.
What are the Things to Keep in Mind when Importing from China to the US?
Importing from china to USA
The phrase ‘all goods are made in china’ is accurate.
China is a production superpower and manufactures the majority of world consumables.
If you are a newbie in the importation market, you are probably worried about what to do and know.
Lucky for you, here is a list of things you should keep in mind when you import from china;
· Identify the Goods you want to Import
The process of importation all starts with identifying the correct type of good.
You are in the business to make profits.
Therefore, you should choose a fast-moving product that will save time and yield maximum profits.
The rule of thumb is, always invest in a product that you can buy.
Besides, you should be passionate and knowledgeable about the product to import.
As if that’s all, your product should allow the importation of large quantities to reduce importation duty through economies of scale.
· Identify your Import Rights
When you buy in small quantities, you can use employee couriers to import on your behalf.
However, if you are importing commercially, you should keep in mind the following rights;
- If you are from the US, your company’s internal revenue service number or social security number will be enough.
– Ensure that the Goods you Want to Import are allowed in the US
Check on regulations on allowable products for importation.
You should avoid venturing into the importation of products such as milk, fruits, and seeds.
Also, ensure that your imports are of the right quality standards and meet health code requirements.
Such goods can be detained, destroyed, or even attract hefty penalties that may cost your business.
What Happens when you Fail to Pick your US Shipment from China On Time?
Usually, after finishing up with the customs clearance, you are eligible to pick your shipment.
But for one reason or another, you may fail to pick your package after arrival in the US.
In this case, this is what will happen:
First, containers transported by sea take 1-3 days to be offloaded from the vessels.
In cases where your container is a Full Container load, you can pick it as soon as it’s offloaded.
You will need to track your shipment to the container freight station for less than the container load that takes another 1-2 days.
The consignment is demonetarized for another 2-3 days.
If the allowed time passes and you don’t pick your shipment, you attract demurrage charges.
These charges vary depending on the port.
The applicable free storage period is always 5 days, after which you start paying for demurrage charges.
What are the US Customs Fines?
The US does not tolerate illicit, illegal, or unsafe trade.
US custom fines are a remedy to minimize instances of illicit trade.
Custom fines are a monetary penalty fined on illegal business transactions by the Central Border Patrol.
It is applicable in all the 326 ports of entry.
When you travel from a foreign country to the US, you must register any foreign possession you have with customs.
Failure to do so can lead to legal actions such as fines or even alienation of the property.
It is paramount to have the necessary information regarding customs rates.
You should also be aware of trading rules within the US. Some goods are not allowed.
Do you need a China to US Import Duty Agent?
Yes, you need an import duty agent when importing from China to the US.
The process of dealing with customs and tracking your goods from China is tiresome, expensive, and complicated.
Learning regulations involved in trading can be stressful and tedious.
With the right import duty agent, you can concentrate on the core business activities and let the agent handle your shipment.
China to US imports duty agents has proven influential, given their vast reputation.
They can serve as translators and communicate with customs and governments to ensure a streamlined shipping process.
How can you Reduce the US Import Duty from China?
The sole purpose of your business should be to maximize profits.
When you import, you can incur excess import duties that you could have avoided if you made shipping easy.
It all starts with controlling the various factors that affect importation.
The whole process relies on hefty paperwork; keeping an accurate record of every transaction can reduce importation delays.
You can employ the following ways to reduce the import duty charged on goods you import from china.
– Checking the Value of Goods you Import
Undervaluing is a tactic adopted by numerous businesses importing products.
Here, you use lower values than your imported products’ actual values to claim a lower-income duty.
If you succeed and customs don’t realize, you will profit from paying low custom duties.
However, the government has raised the alarm over this issue.
If you are caught undervaluing your product, hefty charges can apply, and you risk experiencing custom delays in processing your imports.
– Using Tariff Codes
The tariff codes show details of the commodity you are importing and the applicable tariff.
The last digits in the tariff code are assigned to a specific country.
The first digit is international.
You should be careful to ensure you have the right tariff code.
Having a wrong code can lead to extra charges.
– Verifying Information
Obviously, there is a lot of paperwork involved in importation.
New rates and tariffs are formulated with time.
It is essential to ensure that you are aware of the trends in importation.
Changes in currency and drops in prices of a particular commodity can force the government to deploy new rates.
Rates that were accepted last year may not necessarily apply to current years.
To avoid freight delays and customs delays in clearance, ensure the rates you use are updated as per the government rates.
– Responsibility of the Supply Chain
Most often, you can assign a broker to take care of your importation and transportation.
These brokers can assure you that they can classify the products and calculate the applicable duty rates.
However, this might not be the case.
These brokers are not obliged to be accurate in everything.
They can make mistakes.
If this happens, be sure to take full responsibility for the full cost.
In a nutshell, reducing the cost of importation from china entirely depends on the information you store.
Accuracy is paramount, it might require a lot, but sure it does pay.
What are the Factors that Influence US Import Duty from China?
To begin with, many products that dock in the US borders originate from China.
Most of these products are taxed based on prescribed tariffs.
The first aspect that influences US import duty from china is the type of commodity.
Those in the alcohol and tobacco importation pay a higher rate than those in the foodstuff industry.
Secondly, the quantity imported also affects the duty paid.
In terms of economies of scale, if you import more, you will pay less per unit.
Quantity also influences the duty payable because few goods worth less than $800 are imported free.
At the same time, those above the amount have to pay import duty.
The last aspect is the method of importation.
Those goods that are imported by sea must pay harbor to maintain ace costs unlike those imported by air transport or railways.
Why should you Consider Bansar to help you Import from China to the US?
At Bansar, we have an impeccable reputation in the importation of goods from China to the US.
We make our shipments by air, sea or railway.
With an excellent competitive rate comes a reduction in importation cost.
The process is simple; you just have to ask for a quote, and our ever dedicated team will be in touch to negotiate the terms.
Additionally, we offer free 20-30 days of warehousing for your products.
We do all customs clearance and product classification for you.
In a nutshell, we provide the following competitive services to you;
- Competitive rates
- 12 years’ professional freight forwarding experience
- Ability to handle all types of containers
- 24/7 customer support and free quotes
- Professional clearance
Don’t worry about the custom clearance process for your imports from China to the USA; contact us with your request, sit back, and let us handle all the complications for you.