How to calculate import duty from china to usa ? The U.S. duty rate is calculated based on the declared value of the product only. (3) Place of shipment of goods: Depending on the origin of the product, import restrictions and tariffs may vary greatly
Table of Contents
- what is the import tax from china to usa
what is the import tax from china to usa
Common tariff types for sea freight exports to the United States
(1) Basic tariff:
Simply put, it is the basic tariff levied on imported goods, excluding other taxes and fees.
(2) Subsidy Tax (CVD):
Imposing countervailing duties on subsidized imports from other countries,Foreign countries sometimes provide manufacturers with subsidies and tax breaks,in this case,The importing country imposes countervailing duties,To prevent these imported products from being sold at lower prices in the local market,Countervailing duties are equivalent to subsidies provided by other countries to level the playing field.
(3) Anti-dumping duties:
Anti-dumping duties refer to the protection of local industries,is levied on goods deemed to be imported at very low prices (below market prices),Possibly to sell at below market prices,Anti-dumping duties will be imposed on such products to make up the price difference and ensure fair competition in the market,Anti-dumping and countervailing duties vary according to the country of origin and type of goods imported
how to calculate import duty from china to usa
[Tariff Rate] X [Total Declared Value of Goods] = [Tariff]
- Check the HTS code through the public web page of the HS code,
- Declare the total value of the price according to the commercial invoice,
- The tariff rate of the goods * the declared value of the commercial invoice = tariff.
You can also use the Tariff Calculator:https://www.guanwuxiaoer.com/taxes.php?hs_code=850940
Issues affecting import tariffs
(1) Tariff rate:
According to each product’s own tariff rate, these rates are classified and organized into different product codes, which are called HS codes, HTS codes, TARIC codes, etc. depending on the country.
(2) Declared value:
Calculate the tariff based on the declared value of the product (the EU will charge additional value-added tax, etc.),
The U.S. duty rate is calculated based on the declared value of the product only.
(3) The place of departure of the goods:
Depending on the origin of the product, import restrictions and tariffs may vary greatly, and it is necessary to check whether there are special trade agreements that may affect tax rates, preferential tariff reduction agreements, etc. between the origin and destination countries.
What is the Harmonized System Tariff (HTS)
The Harmonized System Tariff is a multi-purpose global nomenclature developed by the World Customs Organization to coordinate and classify products according to codes. You can refer to the relevant link: https://hts.usitc.gov/
Details to pay attention to when calculating tariffs
(a) Free Trade Agreement (FTA);
Check whether there is a free trade agreement between the country of origin and the country of destination. The declared HS code of some products belongs to the scope of duty-free, or it needs to be declared to the customs in advance.
(2) Minimum threshold tariff point (DMT):
In 2015, the amount of import tax exemption was increased from 200USD to 800USD, which was implemented by the US Customs and Border Protection in March 2016. There is no need to pay duties or taxes even if you make a formal customs declaration.
Why do I have to pay taxes when I declare less than $800?
Since February 24, 2016, former U.S. President Barack Obama signed the Trade Facilitation and Trade Enforcement Act of 2015, which increased the import duty-free amount from $200 to $800. Implemented on March 10.
The tax-exempt amount means that qualified shipments whose declared dollar amount is less than the specified amount can be exempted from formal customs declaration and no need to pay duties or taxes. This means that most shipments into the United States with a value of less than $800 are exempt from formal customs clearance and import duties. This move has not only inspired American consumers but also encouraged many e-commerce sellers to consider using express delivery more.
Trade Facilitation and Trade Enforcement Act of 2015, referred to as TFTEA, Chinese translation is “2015 Trade Facilitation and Trade Promotion Act”.
The purpose of the bill is mainly to strengthen the ability of US Customs and Border Protection to enforce US trade laws and regulations, simplify and promote legal trade, and prohibit illegal trade.
Speaking of this, many friends have doubts. Since it is tax-free for less than 800 US dollars, why are there still tariffs if I declare less than 800 US dollars? In fact, like other laws and regulations, there are conditions and exceptions:
No.1: The goods must be imported by the same person on the same day (i.e. import in the name of the company is not applicable)
No.2: Consolidated goods delivered to the same final consignee will be regarded as one consignment of imported goods (that is, the total amount of several consignments imported by the same person on the same day exceeds 800 US dollars cannot be applied)
No.3: Alcoholic beverages, perfumes containing alcohol (unless the total fair retail value in the country of shipment of all goods does not exceed $5), cigars or cigarettes are not exempt from taxation.
No.4: If the customs believes that the goods belong to one of several batches under a single order or contract, and are shipped separately for the purpose of free entry (tax-free) or avoiding compliance with any relevant laws and regulations, such Circumstances are not exempt from taxation.
No.5: Commodities that belong to the category of tariff quotas cannot be exempted from tax (for example, agricultural products that belong to tariff quotas cannot be exempted from taxation)
No.6: If one or more cooperative government agencies need information to achieve regulatory goods, they cannot be exempted from taxation (for example, goods that involve the supervision of the FDA department cannot be exempted from taxation)
No.7: (Even if we declare less than 800 US dollars, the U.S. customs still has the right to require a formal customs clearance declaration. As long as the customs suspects that the low value of the shipment declaration is to avoid complying with certain relevant laws and laws, the goods will be released There is a risk of being denied exemption from taxation.)
This is also the one that should be explained the most, that is: you declared the value to be less than 800 US dollars, but the US Customs has the right to suspect that you deliberately underreported, and if the value of the goods is re-valued, if the value is higher than 800 US dollars, then the tax will still be levied.
How to calculate import duty from china to usa? Do you understand this topic now? If you have any questions, feel free to contact us
how to pay import tarriffs to usa from china
First of all, you need to understand your goods, what is the shipping method from China to the United States, if you are shipping by sea or air, you only need to find a qualified customs clearance company, they will prepare customs clearance documents for you, and deliver the goods Before arrival, submit to the customs, after receiving the customs duty notice, you only need to pay the customs duty to the customs clearance company, and they will help you pay the duty
For detailed process, you can refer to our article:《CUSTOMS CLEARANCE PROCESS: 6 MUST-HAVE DOCUMENTS》
If you are using DHL, UPS, FedEx to transport your goods, please don’t worry, their customs clearance company will help you clear customs and send the corresponding tax payment notification link to your email
Of course, if you feel that the whole process will waste a lot of your time, you can find a Chinese freight forwarder, and they will provide you with DDP transportation service
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