Customs Duties Explained for China to US Shipments

Shipping goods from China to the U.S.? Don’t let customs duties catch you off guard. Whether you're a small business owner, an e-commerce seller, or just sending a high-value package, understanding how customs duties work can save you time, stress, and—most importantly—money.

What Are Customs Duties?

Simply put, customs duties are taxes imposed by the U.S. government on imported goods. These fees help regulate trade, protect domestic industries, and generate revenue. When your shipment crosses the Pacific, U.S. Customs and Border Protection (CBP) checks it and decides if duties apply based on the item’s value, type, and origin.

Who Pays the Duty?

Good news: If you’re shipping commercially, the receiver (that’s usually you or your customer) pays the duty. But here's the kicker — if you don't properly declare the contents or undervalue the goods, your package could get delayed or even seized. Not cool.

How Much Will You Pay?

Duties aren’t one-size-fits-all. Rates depend on the Harmonized Tariff Schedule (HTS) code of your product. Some items enter duty-free; others can be taxed up to 25% or more. For example:

And don’t forget: Even if the duty rate is 0%, your shipment might still incur processing fees or Merchandise Processing Fees (MPF). The MPF is typically 0.3464% of the goods’ value, with a minimum of $27.23 and a maximum of $538.10 per entry.

The $800 De Minimis Rule – Your Secret Weapon

Here’s where it gets sweet: The U.S. allows a $800 de minimis value for imported goods. That means if your shipment’s total value (including shipping and insurance) is under $800, it enters duty-free — no questions asked. This rule is a game-changer for small businesses and drop shippers.

But caution: This exemption applies only to one shipment per person, per day. Trying to split a $2,400 order into three $800 packages? CBP might see that as fraud. Play fair.

Tips to Minimize Duties

• Classify Correctly: Use the right HTS code. Misclassification = fines or delays.
• Break Down Values Clearly: Invoices should list each item, quantity, price, and material.
• Use Incoterms Smartly: Choose DDP (Delivered Duty Paid) if you want to control costs, or DDU (Delivered Duty Unpaid) if the buyer assumes risk.
• Stay Under $800: Whenever possible, leverage the de minimis rule.

Bottom Line

Shipping from China to the U.S. doesn’t have to be a customs nightmare. Know your product, know your value, and know the rules. With smart planning, you can keep duties low, deliveries fast, and customers happy.

Got a tricky shipment? Consult a licensed customs broker. It’s cheaper than a seized container.