How to Reduce the Duty & Tariffs Import from China?
Now, I’m going to show you step by step how to find the HTS code and Calculate Import Duty from China to the US. You will learn a skill at your fingertip for finding out your Tax and tariffs on your own when you import from China.
It is so exciting when you’ll find a new product, and you are starting a new business. The most critical thing for you is to avoid the business blind spot.
First, I’m going to review one of your blind spots. That is your Duty, Tax, or Tariffs. So exactly how much import duty from China?
Before we rush into finding out our duty rate, let’s get the very important question answered.
Table of Contents
Why do you need to know your duty rate?
Here 2 very important reasons.
The first reason is that find the right product Duty rate can help you save money.
For example, you’re contemplating importing these products: both products look like an umbrella.
Yes, they are, but if you look closer, they’re not the same. one is your travel umbrella another is your patio umbrella. as you can see here, there’s a knob that you can adjust the height up and down.
So, if one product duty rate is free and the other one you have to pay an additional 25% tariffs, Would you think twice about which product to choose.
Absolutely, I would choose the first one which product is going to make me more money.
The second reason is that you have to do with legal. You are the importer of the record. You are legally responsible for paying the correct Duty amount.
On this subject, I want you to be streaming carefully when the supplier called you on a DDP basis.
They purposely declared lower commercial invoice value to avoid some of the Duty. if you are the importer of the record, you are still legally responsible for whatever amount you should pay and if the custom finds out and audit you, you could get a fine.
As the entrepreneur starting and running your business, you really don’t want any blind spot. These two are very important reasons for you to understand why you need to know your duty rate.
Now let’s find out what Duty and fees do we need to pay in order to clear our item out of the Customs.
The first one is the quick duty question!
When for Free Import Duty from China to the US?
There’s no blanket free import duty from China to the US in 2025. However, certain scenarios allow duty-free imports under specific conditions. Goods valued under $800 could qualify for duty-free entry under the de minimis rule, but this exemption is being phased out for Chinese and Hong Kong goods starting May 2, 2025, with new tariffs or fees applying. Personal exemptions for travelers bringing back goods from China for personal use (not resale) are typically duty-free up to $800 per person, but limits apply on items like alcohol and tobacco.
Some products might still enter duty-free if they’re covered by special trade programs or exemptions, like certain informational materials (books, CDs, etc.) or goods for humanitarian relief (food, clothing, medicine). Samples marked as “no commercial value” and valued at $1 can also sometimes avoid duties, but this is strictly regulated. For commercial imports, you’d need to check the Harmonized Tariff Schedule (HTS) code for your product—some items, like specific medical supplies or electronics, have seen tariff reductions but aren’t guaranteed free.
If you’re importing commercially, correct HTS classification is critical to see if any exemptions apply. A customs broker can help navigate this. Are you looking for something specific, like personal imports or business shipments? That’d help me narrow it down.
Quick tool to calculate import duty & taxes for hundreds of destinations worldwide.
2 Additional Import Duty from China to the US.
1. merchandise processing fee.
It’s not a lot: 0.34%. this fee applies to both air and ocean shipments. Minimum charges 26 dollars that mean if you’re total commercial invoice value times your percentage is less than 26 you will need to pay 26 but no more than 508 dollars
2. harbor maintenance fee:
it’s another one that is very little.
This fee only applied to ocean shipment.
SO, You pay Duty = Regular Duty rate+ merchandise processing fee + harbor maintenance fee + Additional Tariffs.
Since these two fees are pretty much lower, all we have to do is to find our HTS code to determine our duty rate when our shipment is over $800.
The Difference Between the HTS or HS?
HTS or HS, most people are confused by this.
Once you know the difference between the HTS or HS, you will never ask this question. Why can I not find my suppliers’ code?
Here is the difference.
HS code stands for harmonized system code.
HTS code stands for harmonized Tariff Schedule code.
here is the specific difference:
When we talk about the harmonized system code, we’re talking about a six digits code that is used by 200 countries, 98% of the world trade, and this harmonized system code is admitted by the World Customs Organization.
When we talk about the HTS code, this is regulated by the US International Trade Commission – ITC. As you can imagine, we are one of the 200 countries that participated in the harmonized system. Our first six digits in the HTS code are the same as the HS code.
However, the last 4 digits are country-specific. This is why your 10 digital HTS code could be different from the ten digits that your Chinese suppliers give it to you.
Let’s take a look at an example:
for this beautiful piece of the hand-made leather bag.
The first six digits are 4 2 0 2 2 1. These six digits are harmonized system code, whether you are in China United States, Canada, Australia.
These first six digits are harmonized. They are the same. the last four digits 0 0 1 0 are country-specific.
Altogether, 10 digits we call this HTS code.
Example for HTS code means:
Now, we’re gonna break down the first six digits. So you are familiar with chapter hiding and the Subheading.
The first two digits represent the chapter name. In our case, our handbag is made of leather. So it belongs to chapter 42—everything made of leather.
The second two digits represent the heading. The heading further classified if this product is a trunk or suitcase or handbag made of leather. In our case, we are a hand back. So it belongs to hiding 02.
The 3rd two digits represent the Subheading. The subheading further specifies if this handbag has an outer surface made of leather.
Yes, we are made of leather. So our first sixth harmonized code is 420221.
Now, the last four digits are country-specific. If this handbag is handmade, then the classification is 0010. For u.s. Importers, it is important that you know your specific HTS code.
How do I know if I Need to Import Tariffs from China to US?
Determine the Tariff Rate
For example, our garden umbrella has a duty rate of 6.5%. If you see a “/_” symbol next to the percentage, it indicates additional tariffs may apply to the HTS code you’re researching.
When you encounter the “/_” symbol, it signals that extra tariffs, such as Section 301 tariffs, are associated with your product’s HTS code.
There are four main Section 301 tariff lists for imports from China:
LIST 1: 25% in effect since 2018
LIST 2: 25% in effect since 2018
LIST 3: 25% in effect since 2018
LIST 4A: 10% in effect since 2019, increased to 15% as of February 2025
LIST 4B: Currently suspended, no additional tariffs until further notice
So, how do you check if your product is subject to these tariffs? Here’s a quick method.
This shortcut link allows you to quickly verify if your product carries additional tariffs.
Locate the HTS code for your product—for instance, our garden umbrella with a 6.5% duty and the “/_” symbol.
Click the link, copy and paste your HTS code, and you’ll find details on any additional tariffs beyond the standard duty rate.
For example, copy the HTS code 6601.10.00 for our umbrella, paste it into the website, and hit search. You’ll see the results as follows:
(List 4B) $300 Billion Tariff Action, which indicates no additional tariff at this time.
Now you know both the import duty and any applicable tariff rates for your product from China. The next step is to calculate the total duty and tariffs you owe.
How to Reduce the Duty & Tariffs Import from China?
Reducing duties and tariffs on imports from China is a multifaceted challenge that requires strategic planning, compliance with trade regulations, and cost-effective logistics. For small package (“小包”) shipments, consolidating cargo for transportation can significantly lower costs by optimizing duties, reducing per-unit shipping fees, and streamlining customs processes. Below are actionable strategies to minimize these costs, including specific guidance for small package consolidation, while staying compliant with current trade policies as of April 2025.
1. Leverage Free Trade Agreements (FTAs) and Preferential Rates
- Verify if your country has trade agreements with China, such as those with Australia, New Zealand, or ASEAN nations, which reduce tariffs on qualifying goods. Ensure small packages meet “rules of origin” to benefit from lower rates, which may require supplier documentation proving Chinese origin.
- For small packages, consolidating shipments into a single declaration under an FTA can simplify customs paperwork and ensure consistent application of preferential rates, avoiding discrepancies across multiple parcels.
2. Utilize Free Trade Zones (FTZs) or Bonded Warehouses
- Import small packages into a Free Trade Zone (e.g., Shanghai FTZ or U.S. FTZs) or bonded warehouse to defer duties until goods enter the domestic market. This is especially useful for e-commerce businesses handling high volumes of small parcels, as you can consolidate shipments in these zones for processing or re-export without immediate tariff costs.
- By aggregating small packages in an FTZ, you can repack or combine them into larger shipments, reducing per-unit handling fees and potentially qualifying for lower duty rates on bulk entries.
3. Optimize Product Classification (HS Codes)
- Accurately classify small packages using Harmonized System (HS) codes, as tariffs vary by product. For example, apparel might face 15% duties, while certain electronics have lower rates. Misclassification risks overpayment or penalties.
- When consolidating small packages, ensure all items in a shipment share similar HS codes or group them strategically to simplify declarations. A customs broker can help identify codes with lower rates or exemptions, especially for high-volume small parcel imports.
4. Apply for Tariff Exclusions or Exemptions
- In the U.S., check for Section 301 tariff exclusions from the U.S. Trade Representative (USTR), which may waive additional duties on specific Chinese goods. Exclusions are product-specific and often temporary, so monitor updates.
- For small packages, the U.S. de minimis threshold (previously $800 for duty-free entry) has been tightened for Chinese imports as of April 2025, with new duties applied even to low-value parcels. Consolidating small packages into fewer, higher-value shipments can streamline customs clearance and reduce administrative costs, though duty savings may be limited without exclusions.
5. Restructure Supply Chains
- Consider sourcing from countries with lower tariffs, like Vietnam or Thailand, if Chinese tariffs are prohibitive. For small packages, this may involve working with suppliers who can ship directly from these countries, but beware of transshipment risks where Chinese goods are rerouted to evade duties.
- If using China, consolidate small packages at a regional hub (e.g., Shenzhen or Guangzhou) before shipping to reduce freight costs and simplify origin declarations.
6. Negotiate with Suppliers
- Collaborate with Chinese suppliers to lower invoice values (within customs valuation rules) or share tariff costs for small packages. Switching to FOB (Free on Board) terms can reduce dutiable value by excluding freight costs.
- Encourage suppliers to prepare small packages for consolidation by pre-sorting or palletizing them, minimizing handling fees at the consolidation point.
7. Explore Duty Drawback Programs
- In countries like the U.S., duty drawback programs refund duties on imported small packages if they’re later exported or used in exported products. Consolidating shipments improves traceability, making it easier to document eligibility for drawbacks.
- For e-commerce sellers, this can apply to returns or unsold inventory re-exported from a warehouse, but requires meticulous records.
8. Consolidate Small Package Shipments for Transport
- Why Consolidate? Small packages shipped individually incur high per-unit shipping and customs processing fees. By aggregating them into larger shipments (e.g., pallets or containers), you reduce freight costs, simplify customs declarations, and potentially lower duty assessments on bulk entries.
9. Stay Compliant to Avoid Penalties
- Accurate declarations of value, origin, and HS codes are critical, especially for consolidated shipments where multiple small packages are combined. Undervaluation or mislabeling can trigger audits, negating savings.
- Use tools like the U.S. Customs Service’s ACE portal or software from logistics providers to track consolidated shipments and ensure compliance.
10. Monitor Policy Changes
- Tariffs evolve with trade policies. U.S.-China tensions have driven higher duties (e.g., 20% additional tariffs as of March 2025, with China’s reciprocal tariffs hitting 34% on some goods). Small package importers face added scrutiny under new U.S. rules targeting de minimis evasion.
- Consolidation can mitigate some impacts by reducing exposure to per-parcel fees, but stay updated via customs authorities or trade associations to anticipate shifts.
China Duty Conclusion:
See this is so easy to do an HTS code lookup and then calculate the Duty fee. If you need a China sourcing agent to help you buy from China, please feel free to contact us.
You can always ask your freight forwarder or your custom Booker but when you are doing your product research, and you have this skill at your fingertip you can look up your Import Duty from China in ten Minutes.
With the development of artificial intelligence, you can directly ask the artificial intelligence what the tariff / import duty you need to pay is.
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