Customs duties and HTS codes

Customs duty is a tax you pay to import goods, and the rate is set by your product's tariff classification — its HTS code. Every product you import has to be classified under the Harmonized Tariff Schedule, and that code determines the duty rate (plus any special duties that apply). Duty is one part of your total landed cost, alongside freight, insurance, fees, and taxes. Because rates and trade rules change, treat any figure as an estimate and confirm it before you commit to an order.

The Harmonized Tariff Schedule (HTS) is the classification system that assigns every importable product a code. In the U.S. it's a 10-digit code that builds on the 6-digit international Harmonized System (HS) code used worldwide.

Your product's HTS code determines:

• The duty rate that applies (many products fall in a low single-digit-to-mid-teens percentage range, but some are duty-free and others are much higher).

• Whether the goods are subject to quotas or other import restrictions.

• Whether special duties apply (see below).

Classification is precise and product-specific. A single item made of multiple components can require multiple codes — for example, a costume set with several distinct pieces may have several tariff lines, each with its own rate. Getting the code wrong can trigger a hold, a penalty, or a re-classification bill later, so it's worth getting right the first time.

Duty is the classified rate applied to the customs value of your goods.

• In the United States, customs value is generally based on the purchase price of the goods (the transaction value).

• Many other countries assess duty on the CIF value — the cost of goods plus international insurance and freight.

There's also a de minimis threshold — a value below which no duty or tax is charged on a shipment. Above that threshold, duty applies. The threshold and the rules around it change over time, so confirm the current figure with us or your customs broker rather than assuming.

Note: Duty is only part of your landed cost. Freight, cargo insurance, brokerage, customs fees, and any import taxes all add up. Estimate the full landed cost, not just the duty, before deciding whether an order is profitable.

Beyond the standard rate, some goods carry additional duties:

• Punitive / additional tariffs — Extra tariffs applied to specific goods from specific countries, often tied to trade disputes or policy. These can override free-trade preferences and change with little notice.

• Anti-dumping and countervailing duties (AD/CVD) — Applied when goods are found to be sold below fair market value or unfairly subsidized. They target specific HTS codes from specific countries of origin and can be steep enough to make an import unprofitable. If you import a commodity that may be affected, check with a customs broker before ordering.

Because these change frequently, never rely on a rate you saw last quarter. Confirm the current duty picture for your exact product and country of origin close to the time you ship.

There are a few ways to work out what you'll owe:

• Do it yourself. Feasible for occasional shipments if you're comfortable with tariff schedules, but it's the most error-prone route.

• Use a customs broker or trade consultant. They can classify your products, verify your work, and map your catalog to tariff codes. This is the safest option for anything complex or high-value.

• Ask your forwarder. We can help research classifications and estimate duties, fees, and taxes for your shipment.

Warning: Whoever helps you estimate, the Importer of Record is legally responsible for the accuracy of the declaration and for paying the correct amount. Don't undervalue goods or misdescribe them to lower duty — customs actively looks for this, and the penalties fall on you. See ISF, POA and IOR basics.

• Assuming duty doesn't apply to you. If you're the importer, you're liable for the duties, taxes, and fees.

• Ignoring the rest of landed cost. Freight, insurance, and fees all matter when you're checking whether an order pays off.

• Leaving it to the last minute. Sort classification and estimates early, not while cargo is on the water.

• Assuming your forwarder is also your customs broker. If they aren't, you remain liable for classification errors — confirm who is filing.

• Working from stale rates. Tariffs and rules change; re-check before each order.

We can help you research HTS classifications and estimate the duties, fees, and taxes on your shipment so you can budget the full landed cost up front. For anything unusual or high-risk — potential AD/CVD exposure, a first-time commodity, or a high-value order — we'll point you to a licensed customs broker. Ask us early, before you place the order.

• The customs clearance process

• Customs exams and holds: what to expect

• ISF, POA and IOR basics

• Commercial Invoice and Packing List: what we need

• Freight & shipping glossary