US Customs Duties and Tariffs for Cross-Border Sellers: Rates, Classification and De Minimis Rules

Duties are calculated by multiplying the customs value (usually the transaction/FOB value) by the duty rate from the Harmonized Tariff Schedule (HTS) for the specific product classification. For example, a cotton t-shirt (HTS 6109.10) from China faces a base duty of 16.5% plus a Section 301 tariff of 7.5%, totalling roughly 24% ad valorem. Use the US International Trade Commission's HTS lookup tool (hts.usitc.gov) to find your product's classification and rate. Customs brokers can also assist with classification rulings.

Section 301 tariffs are additional duties imposed under the Trade Act of 1974 in response to Chinese trade practices. Four lists cover different product categories: List A (25%), Lists 1-3 (25%), and List 4A (7.5%). These tariffs apply cumulatively on top of normal MFN duties. They apply based on country of origin, not seller nationality — goods manufactured in China and shipped via a third country still face Section 301 tariffs. As of 2025, some exclusions have expired and new tariffs on semiconductors, EVs and batteries have been added at higher rates (25-100%).

Section 321 of the Tariff Act allows one shipment per day per person to enter the US duty-free if the fair retail value in the country of shipment is $800 or less. This benefits DTC sellers shipping directly to US consumers — the buyer receives the package without paying customs duties. However, Section 321 does not waive Section 301 tariffs, antidumping/countervailing duties, or excise taxes. Also, goods entered under Section 321 cannot be imported for resale (they must be for personal use). CBP has proposed rules to exclude Section 301 goods from Section 321 eligibility, which would significantly impact cross-border ecommerce if enacted.

Yes. Shipments to Amazon FBA warehouses are considered commercial imports, not personal-use shipments. They require formal entry (CBP Form 7501), a continuous customs bond (minimum $50,000 coverage), and payment of all applicable duties and fees. The bond covers the importer of record's liability. You can use a single-entry bond for occasional shipments, but a continuous bond is more cost-effective for regular FBA imports. Most customs brokers arrange bonds as part of their service.

Several legal strategies exist: (1) Correct HTS classification — some products qualify for lower rates under a different classification; request a binding ruling from CBP if uncertain. (2) Country of origin planning — sourcing from countries with US free trade agreements (CUSMA/USMCA for Canada/Mexico, CA-DR-CAFTA for Central America) can eliminate or reduce duties. (3) Foreign Trade Zones (FTZ) — goods stored in an FTZ are not subject to duty until they enter US commerce. (4) Duty drawback — if you import goods and later export them, you can claim a refund of 99% of duties paid. (5) Use Section 321 for qualifying DTC shipments under $800. Avoid under-declaring value or misclassifying goods — CBP penalties include seizure, fines up to four times the unpaid duties, and criminal prosecution.