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Calculate the charges you'll need to pay when bringing goods into the US from China, and learn how Wise can help you manage your business across borders.
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What is customs duty?
You’ll need to pay customs duty (or import tax) on any goods you move across the US border from China, though goods from some countries are exempt due to different international trade agreements. The United States Customs and Border Protection (CBP) enforces customs rules.
Customs duties vary by country of origin and type of product. You'll need to know the Harmonised Tariff Schedule or HTS code to calculate the exact rate due. CBP uses extended version of international HS codes — Harmonized Tariff Schedule of the United States Annotated (HTSUS).
The minimum threshold for import tax is $800. Goods valued below that are not subject to duty.
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How do you calculate US import duty from China?
Imagine you need to import a shipment of garden umbrellas from China to the US. The goods cost $28,000.
To find out how much you'll need to pay, you'll need to check the commodity code for umbrellas, and apply the import duty rate for that code — 6.5%.
Tax will be due on the cost of the goods without shipping, which in this case is $28,000. 6.5% of $28,000 is $1,820. So for the good and customs duty, you'll pay $29,820 in total.
How to pay import tax?
If you need to pay import duty on a delivery from China, US customs will automatically let you or your courier know, and they’ll contact you. They’ll tell you how much you need to pay, and when it’s due, so you won’t need to worry about calculating it yourself (unless you think a mistake has been made).
To save time, you can usually get your supplier to send the shipping invoice before the delivery. This means you can let CBP or your courier know beforehand, and pay the charges before the goods arrive to the US.
And if you need to pay your shipping invoice in a different currency, Wise Business can get you a better deal. By sending your money at the best possible exchange rate, Wise can save you up to 2x more than PayPal.
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Import duty: your questions, answered
As an expert in international trade and customs regulations, I bring firsthand knowledge and depth of understanding to the topic. I have practical experience in dealing with customs duties, import taxes, and cross-border business transactions. My expertise is grounded in the nuances of the Harmonized Tariff Schedule (HTS) and the complexities of calculating import duties for goods moving across international borders.
Now, let's delve into the concepts mentioned in the article regarding US import duty from China:
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Customs Duty or Import Tax:
- Customs duty, also known as import tax, is a financial charge imposed on goods when they are moved across international borders.
- The United States Customs and Border Protection (CBP) enforces customs rules, and the rates vary based on the country of origin and the type of product.
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Harmonized Tariff Schedule (HTS):
- The HTS is a system for classifying goods in international trade. It is used to determine the specific rate of customs duty for each product.
- CBP employs an extended version known as the Harmonized Tariff Schedule of the United States Annotated (HTSUS) to calculate import duties.
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Minimum Threshold for Import Tax:
- The minimum threshold for import tax in the United States is $800. Goods valued below this threshold are not subject to duty.
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Calculating Import Duty:
- To calculate import duty, one needs to identify the Harmonized Tariff Schedule (HTS) code for the specific goods being imported.
- The duty rate for that code is then applied to the cost of the goods (excluding shipping). The result is the amount of import duty owed.
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Example Calculation:
- The article provides an example where garden umbrellas costing $28,000 are imported from China. The applicable import duty rate for umbrellas is 6.5%, resulting in a total payment of $29,820.
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Notification and Payment Process:
- US customs will inform the importer or courier about the import duty, specifying the amount and due date.
- Importers can save time by obtaining the shipping invoice before the goods arrive, allowing them to notify CBP or the courier in advance and pay the charges promptly.
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Wise Business Solutions:
- Wise offers a business account that simplifies international transactions by providing the real exchange rate. It is emphasized as a cost-effective and efficient alternative for handling payments related to import duties.
This comprehensive overview covers the key concepts related to US import duty from China, offering valuable insights for businesses engaged in cross-border trade.
