How is U.S. import duty calculated?
Most duty is ad valorem: the HTS duty rate multiplied by the customs value of the goods (usually the price paid, excluding international freight and insurance). Some goods have specific duties (per kilo or per unit) or extra tariffs such as Section 301 duties on certain Chinese goods.
What is the Merchandise Processing Fee (MPF)?
A CBP fee on formal entries of 0.3464% of the goods’ value, with a minimum and maximum per entry that CBP adjusts every October 1. Informal entries (generally under $2,500) pay a smaller flat MPF.
What is the Harbor Maintenance Fee (HMF)?
A 0.125% fee on the value of cargo arriving by vessel at U.S. ports. It does not apply to air or most truck imports.
Where do I find my product’s duty rate?
In the Harmonized Tariff Schedule of the United States (HTSUS), published by the U.S. International Trade Commission. A licensed customs broker can confirm the correct HTS code — classification mistakes are the most common cause of wrong duty.
What is landed cost?
The total cost of getting goods to your door: product cost, international freight, insurance, duties, customs fees, broker fees and inland delivery. Pricing from landed cost — not factory price — protects your margin.