The six steps
- Classify the product. Find the 10-digit HTS code for the product. The first six digits come from the international Harmonized System; the U.S. adds four more. Classification follows the General Rules of Interpretation, starting with the heading text and chapter notes.
- Confirm the country of origin. Origin is where the goods were last substantially transformed, not where they shipped from. It decides which additional tariffs and which trade agreement rates can apply.
- Set the customs value. For most imports this is the transaction value: the price paid for the goods, plus certain additions such as assists and royalties, excluding international freight and insurance.
- Apply the base duty rate. Multiply the customs value by the general (MFN) rate for the 8-digit subheading. Specific rates, such as cents per kilogram, are multiplied by quantity instead.
- Add Chapter 99 tariffs and subtract claims. Check Chapter 99 for Section 232, 301 and 201 tariffs that cover the code, origin and entry date, and add them. Then apply any free trade agreement rate or exclusion the goods qualify for and that you will claim.
- Add the entry fees. Add the Merchandise Processing Fee on formal entries and, for ocean shipments, the Harbor Maintenance Fee. The total is the estimated amount payable to U.S. Customs and Border Protection.
Example: leather shoes
Men's leather footwear under HTS 6403.99.60 has a general rate of 8.5%. For $40,000 of shoes by ocean freight from a country without additional tariffs or a trade agreement:
- Duty: $40,000 × 8.5% = $3,400.00
- MPF: $40,000 × 0.3464% = $138.56
- HMF: $40,000 × 0.125% = $50.00
- Estimated total payable to CBP: $3,588.56
From China or Vietnam the answer changes. Run the example from China and the calculator adds each applicable Chapter 99 line.
Where duty estimates go wrong
- The wrong 10 digits. Neighbouring codes can differ by double-digit rates. Check the chapter notes, not just the description.
- Origin taken from the bill of lading. The port of loading is not the country of origin.
- Old rates. Tariffs follow the entry date. An estimate made last month may already be out of date; check the current schedule.
- Assumed savings. Trade agreement rates and exclusions apply only when the goods qualify and the claim is made.
- Ignoring AD/CVD. Antidumping and countervailing duties can exceed the product's value. Check whether a case covers the product and origin.
To compare suppliers in different countries, use the tariff simulator. For the fee details, see the import duty calculator.