Tips to Reduce Import Fees When Ordering from China

If you're sourcing products from China—whether for resale or personal use—you’ve probably felt the sting of high import fees. As a seasoned e-commerce advisor who’s helped over 200 brands streamline their supply chains, I’ve seen how unexpected tariffs and duties can wreck profit margins. But here’s the good news: with smart planning, you can significantly reduce import fees and keep more money in your pocket.

Know the Rules: HS Codes & De Minimis Values

The first step? Understand how customs classifies your goods. Every product has an HS (Harmonized System) code—a 6-10 digit number that determines its duty rate. Misclassifying items is one of the top reasons importers overpay. For example, a cotton T-shirt (HS 6109.10) might face a 16% duty in the U.S., while a polyester one (HS 6109.90) could be taxed at 28%. Small mistake, big cost.

Also, check your country’s de minimis value—the threshold below which no duties are charged. Here’s a quick comparison:

As you can see, shipping to the U.S.? You can send multiple shipments under $800 with no duties—perfect for small businesses testing new products.

Leverage Free Trade Agreements

China isn’t part of many bilateral trade deals, but some components used in manufacturing may qualify for preferential treatment if sourced from countries with FTAs. For instance, using Korean-made fabric assembled in China might not help—but if you shift final production to Vietnam (part of CPTPP), you could slash tariffs when importing into Canada or Australia.

Break Down Shipments Strategically

This one’s a game-changer. Instead of sending one large container, split orders across multiple air shipments under the de minimis limit. Let’s say you’re importing 500 phone cases valued at $5 each. A single $2,500 shipment to Canada would incur duties. But five separate $500 shipments? Each under Canada’s $800 CAD (~$600 USD) business threshold? Potentially duty-free. Just make sure each package has proper commercial invoices.

Use Incoterms to Your Advantage

Always negotiate EXW (Ex-Works) or FCA (Free Carrier) terms with suppliers. Why? Because you control the shipping—and thus, the declared value. Some suppliers inflate values to cover 'handling,' which boosts your duty base. By managing logistics yourself, you ensure accurate declarations and avoid overvaluation.

Explore Bonded Warehouses & Duty Drawback Programs

In the U.S., consider using a bonded warehouse. You store imported goods without paying duties until they’re sold or distributed. If you end up re-exporting them, you pay zero tariffs. There’s also the duty drawback program—get up to 99% of duties refunded if you export the same item within 5 years.

Bottom line: Don’t treat import fees as fixed costs. With the right strategy, you can legally minimize import charges and boost profitability. Start by auditing your current shipping methods, double-check HS codes, and always plan around de minimis thresholds.