Customs Duty and Import Tax in the US: How Much You Pay and How It Works

Customs duty, also called import duty or import tax, is the tax on imported goods that US Customs and Border Protection (CBP) collects. How much you pay in the US is the customs value of the goods multiplied by the duty rate for their code in the Harmonized Tariff Schedule of the United States (HTSUS), plus any additional duties for that product and origin, plus the Merchandise Processing Fee (MPF) and, for ocean cargo, the Harbor Maintenance Fee (HMF). The importer of record owes it.

Classification drives most of that number. Take an apparel importer in New York bringing in 2,000 women’s cotton blouses from Bangladesh with a declared value of $86,000. Under HTSUS 6206.30.30 the general duty rate is 15.4%, or $13,244. If the blouses contain 36 percent or more by weight of flax fibers, they belong under 6206.30.20 at 3.5%, or $3,010. The fiber content a broker confirms is worth $10,234 in duty on a single shipment.

Multiply that across a year of imports, and the difference between correct and incorrect duty classification is the difference between a profitable product line and a marginal one.

Customs duties and import taxes are a cost on every dutiable import, and the amount depends on decisions the importer controls: classification, valuation, origin and the programs claimed. An importer who accepts whatever duty is assessed, without understanding how duties are calculated, what exemptions may apply, or how classification decisions affect the bottom line, cannot tell when it is overpaying.

This guide explains how much customs duty and import tax US importers pay, how it is calculated, how to look up a duty rate, the key exemptions and programs that reduce costs, and how freight forwarders help importers through the process.

What Are Customs Duties?

Customs duties serve several purposes:

• Revenue generation. Duties are federal revenue, collected by CBP for the US Treasury.
• Domestic industry protection. Higher duty rates on certain products protect US manufacturers from foreign competition.
• Trade policy enforcement. Anti dumping duties, countervailing duties, and Section 301 tariffs are tools for enforcing trade policies.
• Trade agreement implementation. Preferential (reduced or zero) duty rates under free trade agreements incentivize trade between partner countries.

Types of US Customs Duties

Additional duties such as Section 301 and Section 232 are listed in Chapter 99 of the HTSUS and are added on top of the regular rate. They change often, so check the current actions on the CBP Trade Remedies page before you quote a landed cost.

How Much Is Customs Duty and Import Tax in the US?

There is no single rate. The duty is set line by line in the HTSUS: many products have a general rate of “Free”, while others carry a percentage, a fixed amount per unit, or both. As a reference point, CBP sampled 392,312 informal entries filed from September to November 2025 and found that duties paid averaged 14.84% of the value of the goods (Federal Register, October 8, 2026).

The worked example below uses the cotton blouse shipment from the opening, arriving by ocean, with the fees in force from October 1, 2026.

Any additional duty for the product and origin is calculated on the same customs value. If a 25% Section 301 duty applied, for example, it would add $21,500 to this shipment. Fee sources: CBP fiscal year 2027 user fee notice and 19 CFR 24.24 for the HMF. For how the MPF and HMF work in depth, read MPF and HMF: US Customs Fees Explained.

Who Pays Customs Duty?

The importer of record pays. Under 19 CFR 141.1, the liability for duties is a personal debt of the importer, and paying a broker does not relieve the importer if the broker does not pass the money to CBP. In practice a licensed customs broker files the entry and pays CBP, then bills the importer. For parcels, the express carrier’s broker usually pays and bills the receiver.

Do You Still Pay Import Tax on Low Value Shipments?

Yes. Duty free de minimis entry for goods valued at $800 or less has been suspended since August 29, 2025, and on June 24, 2026 CBP issued rules that suspend it indefinitely. Low value shipments now pay duty and need an informal entry (goods valued at $2,500 or less, or $250 or less for goods subject to Chapter 99, Subchapter III or IV duties) or a formal entry. For how this affects clearance times, see How Long Does Customs Clearance Take? US Timelines Explained.

How Customs Duties Are Calculated

Step 1: Classify the Product

Every imported product must be classified under the Harmonized Tariff Schedule of the United States (HTSUS). The HS code determines the applicable duty rate. Selecting the correct line requires detailed knowledge of the product’s composition, function, and construction.

Why classification matters: Adjacent codes can carry very different rates. Cotton blouses under 6206.30.30 pay 15.4%, while those containing 36 percent or more flax fibers by weight fall under 6206.30.20 at 3.5%. Classification decisions are not arbitrary. They must be based on the actual characteristics of the goods, the General Rules of Interpretation (GRI), and CBP rulings.

Step 2: Determine the Value

US customs duties on ad valorem (percentage based) items are calculated on the transaction value of the goods. Transaction value is the price actually paid or payable for the goods when sold for export to the United States.

What is included in transaction value:

• The price paid for the goods (invoice value)
• Packing costs incurred by the buyer
• Selling commissions paid by the buyer
• Assists (materials, tools, or designs provided by the buyer to the seller)
• Royalties or license fees related to the imported goods
• Proceeds from subsequent resale that accrue to the seller

What is NOT included:

• International freight and insurance costs from the country of exportation to the US (19 USC 1401a)
• US import duties
• Post importation costs (inland freight within the US, installation)

Step 3: Identify the Country of Origin

The country where the goods were manufactured or substantially transformed determines which duty rate applies. This is especially important for:

• Free trade agreements. Goods qualifying under USMCA, KORUS, or other FTAs may enter at reduced or zero duty rates.
• Generalized System of Preferences (GSP). GSP gave duty free treatment to eligible goods from developing countries, but it expired on December 31, 2020 and is pending renewal by Congress, so GSP claims are not available today.
• Anti dumping and countervailing duties. These additional duties apply to specific products from specific countries.
• Additional duties by origin. Section 301 actions, for example, apply only to goods of the countries they name.

Step 4: Calculate the Duty

Basic duty calculation:

Duty = Declared Value × Duty Rate

Example: $200,000 shipment of wooden furniture classified under HTSUS 9403.60.80, general duty rate “Free”. The regular duty is $0, but the importer still checks Chapter 99 for any additional duty on that product and origin, and still pays the MPF.

Example with an additional duty: $200,000 shipment from China with a 3.9% general rate and a 25% Section 301 duty. The rates add up to 28.9%, so the duty is $200,000 × 28.9% = $57,800.

Step 5: Add Other Import Fees

Beyond the basic duty, US imports are subject to additional fees:

How to Look Up a US Customs Duty Rate

US customs duty rates are published, free, in the HTSUS. CBP notes that the duty rate you find is only as good as the product information you use, and that CBP makes the final determination of the correct rate (CBP, Determining Duty Rates).

Programs That Reduce or Eliminate Duties

Free Trade Agreements

The United States has comprehensive free trade agreements in force with 20 countries. Goods that qualify under these agreements enter at reduced or zero duty rates.

Major US FTAs:

• USMCA (Mexico, Canada), which replaced NAFTA
• KORUS (South Korea)
• AUSFTA (Australia)
• DR CAFTA (Central American countries + Dominican Republic)
• US Chile, US Colombia, US Panama, US Peru FTAs
• US Israel FTA

To claim FTA preferential rates, importers must present a valid certificate of origin and the goods must meet the agreement’s rules of origin requirements.

Foreign Trade Zones (FTZ)

Foreign Trade Zones are designated areas within the United States where goods can be imported, stored, assembled, manufactured, or re exported without paying customs duties until the goods enter US commerce. FTZ benefits include:

• Duty deferral (pay duties only when goods leave the zone for US consumption)
• Duty elimination on goods that are re exported
• Inverted tariff benefits (foreign components used in production generally pay the duty rate of the finished product when it enters US commerce, which helps when that rate is lower, unless the components were admitted in privileged foreign status)
• Reduced merchandise processing fees and streamlined procedures through weekly entry, which lets zone users file one entry per week, and direct delivery (trade.gov, About FTZs)

Temporary Import Under Bond (TIB)

Goods imported temporarily for specific purposes (trade shows, testing, repair) can enter duty free under a Temporary Import Bond, provided they are exported within the bond period. CBP can extend that period by up to two further periods of 1 year each (19 CFR 10.37).

Drawback

Duty drawback allows importers to recover up to 99% of duties, taxes and fees paid on imported goods that are subsequently exported or destroyed under CBP supervision. Claims must be filed within 5 years of the date of importation (19 USC 1313). This applies to goods that are:

• Exported in the same condition (unused merchandise drawback)
• Used in the manufacture of products that are then exported (manufacturing drawback)
• Substituted with commercially interchangeable domestic goods that are exported

Common Customs Duty Mistakes

1. Accepting the First Classification Without Verification

An importer that uses the HS code provided by its overseas supplier without independent verification takes on the supplier’s mistakes. Supplier classifications can be wrong because the supplier may not understand the nuances of US tariff classification. A qualified customs broker should independently verify every classification as part of the US customs clearance process.

2. Not Claiming FTA Benefits

Importers pay the full general rate on goods that could enter free or at a reduced rate when they do not check FTA eligibility, or when they do not obtain the origin documentation the agreement requires from their suppliers.

3. Incorrect Valuation

Under declaring the value of goods to reduce duties is customs fraud. Over declaring (by including costs that should be excluded, like inland freight) results in overpaying duties. Both are problems that proper valuation review prevents.

4. Ignoring Anti Dumping and Countervailing Duties

AD/CVD orders apply when the Department of Commerce finds that imported merchandise was sold in the US at an unfairly low or subsidized price. The cash deposit rates are set per product and country, often per producer, and are added to the regular duty. Importers who do not check for AD/CVD orders before sourcing from a new country can face large unexpected costs.

5. Missing Drawback Opportunities

Companies that import components, add value, and then export finished products may be eligible for duty drawback but never file claims. For manufacturers with significant import duty expenses and export volumes, drawback returns up to 99% of the duty paid on the imported inputs.

How Freight Forwarders Help with Customs Duties

Freight forwarders with customs brokerage capabilities (or strong customs broker partnerships) add significant value to the import process:

Accurate classification. Experienced customs brokers classify products correctly the first time, avoiding overpayment and compliance risk. They stay current on tariff changes, ruling modifications, and classification precedents.

FTA qualification. Forwarders advise importers on FTA eligibility and coordinate with overseas suppliers to obtain the required origin documentation.

Duty optimization. Beyond classification, forwarders identify opportunities for FTZ usage, drawback programs, TIB entries, and other duty reduction strategies.

Compliance protection. Proper classification, valuation, and origin determination protect importers from CBP audits, penalties, and enforcement actions. Entry filing and duty payment sit with the licensed customs broker, so the forwarder’s part is to hand the broker clean, consistent shipment data. For how brokers structure that work, read Customs Brokerage Compliance Workflows: 2026 Buyer Framework (ISF, AMS, PGA, ACAS).

GoFreight generates the commercial invoice, packing list, arrival notice, HBL and MBL documents from one shipment record, and files ISF 10, ISF 5 and ocean AMS through integrated filing partners in its Customs Management Software for Forwarders. Charges carry from quote to shipment to invoice without being keyed again, and shipment based accounting in Freight Billing & Accounting Software for Forwarders ties every charge, including duty and fee disbursements, to the shipment that generated it.

Frequently Asked Questions

What is a custom duty?

A customs duty is a tax a government charges on goods imported into the country. In the US, CBP collects it for the Treasury, at the rate set for the product’s HTSUS code, usually as a percentage of the customs value, a fixed amount per unit, or both. It is also called import duty or a tariff.

How much is customs duty in the USA?

It depends on the product’s HTSUS code and country of origin: many goods have a general rate of “Free”, while others pay a percentage of value, a fixed amount per unit, or both, plus any additional duties. In a CBP sample of 392,312 informal entries from September to November 2025, duties averaged 14.84% of the goods’ value. On top of duty, a formal entry pays the MPF of 0.3464% (minimum $34.58, maximum $670.86 from October 1, 2026), and ocean cargo pays the 0.125% HMF.

What is the tax on imports?

In the US, the tax on imports is the customs duty, plus any additional duties such as Section 301 or Section 232 and the CBP processing fees (MPF, and HMF for ocean cargo). Some products also owe other federal taxes payable because of importation, such as excise tax. The amount is worked out on the customs value, which excludes international freight and insurance.

Who will pay customs duty?

The importer of record pays customs duty. Under 19 CFR 141.1 the duty is a personal debt of the importer, and paying a customs broker does not discharge it if the broker fails to pay CBP. A seller can agree to cover duties in the sale terms, but CBP still looks to the importer of record for payment.

Why is UPS asking me to pay import fees?

UPS, like other express carriers, uses a customs broker to clear your package through CBP, pays the duty and fees on your behalf, and then bills you for them, and may add a brokerage fee. CBP warns buyers that broker fees and CBP duties may be an additional charge the buyer is responsible for, even when the purchase price included shipping. With the $800 de minimis exemption suspended, more low value packages now carry these bills.

What happens if I don't pay customs duty?

Unpaid customs duty does not go away: it is a personal debt of the importer, and CBP collects it with interest. Estimated duties are due with the entry summary within 10 working days after entry (19 CFR 142.12). Goods nobody enters by the fifteenth calendar day after landing go to a general order warehouse (19 CFR 4.37). CBP bills are due within 30 days; after that, interest accrues and CBP sends a formal demand to the bond surety (19 CFR 24.3a).

Are there tariffs on orders under $800?

Yes. Duty free de minimis entry for goods valued at $800 or less has been suspended since August 29, 2025, and CBP made the suspension indefinite on June 24, 2026, so low value orders pay the same duties and additional tariffs as larger shipments. The One Big Beautiful Bill Act also ends the exemption by law effective July 1, 2027.

Do we still have to pay import tax in the USA?

Yes. Every import owes the duty set for its HTSUS code unless a program such as a free trade agreement, a foreign trade zone or temporary importation under bond applies, and many goods carry additional duties on top. Products with a general rate of “Free” still pay the MPF and any additional duty that applies to their origin.

How do I find the duty rate for a specific product?

The duty rate for any product is found in the Harmonized Tariff Schedule of the United States (HTSUS), available for free on the US International Trade Commission website. Search by product description or HS code. The HTSUS shows the general (MFN) duty rate, special (FTA preferential) rates, and Column 2 rates (for non MFN countries). For products subject to additional tariffs (Section 301, Section 232, AD/CVD), check Chapter 99 of the HTSUS and the CBP Trade Remedies page. CBP makes the final determination, and a binding ruling from CBP gives a definitive classification before you ship.

Can I get a refund if I overpaid customs duties?

Yes. If you overpaid because of incorrect classification, incorrect valuation, or failure to claim FTA preferential rates, you can file a protest with CBP within 180 days after liquidation to recover the overpayment. For drawback claims (recovering duties on goods that are subsequently exported), the filing window is 5 years from importation. Refunds of duties collected under the International Emergency Economic Powers Act (IEEPA) are being processed through CBP’s CAPE function in ACE. The amounts recovered can be substantial, making periodic duty audits a worthwhile exercise.

Keep Reading

• MPF and HMF: US Customs Fees Explained (2026 Rate Update)
• How Long Does Customs Clearance Take? US Timelines Explained
• Customs Brokerage Compliance Workflows: 2026 Buyer Framework (ISF, AMS, PGA, ACAS)