Import Duties

What Are Import Duties?

Import duties, also called tariffs or customs duties, are charges a country applies to goods entering from abroad. In the United States, duties are collected by U.S. Customs and Border Protection. The amount depends mainly on the product's tariff classification, its declared value and its country of origin. Imports can also be subject to other fees, and some products face additional tariffs on top of standard rates.

How It Works

Duty calculations generally follow a few principles:

• Classification: the HS or HTS code sets the base duty rate.
• Valuation: most duties are a percentage of the customs value of the goods, though some are charged per unit or by weight.
• Origin: where a product was made can change the rate, including through trade agreements or additional tariffs.
• Fees: additional processing fees may apply to each entry.

For example, a brand importing a shipment of handbags declares the value on the commercial invoice, its customs broker confirms the classification, and the duty is calculated from the applicable rate. The brand then adds that duty to freight and other costs to understand the real cost of each bag.

Why It Matters for Ecommerce Brands

Duties can significantly change product margins, and tariff rates can change with little notice. Brands that ignore duties when pricing may find their margins much thinner than expected. Building duties into landed cost, reviewing rates before placing large orders, and planning around rule changes all help protect profitability. Because duty rates, trade programs and exemptions change, brands should confirm current rates with a licensed customs broker. This is general information, not legal or tax advice.