Freight & Customs

US tariffs, classification and country of origin

There are no tariff rates on this page, on purpose. In the last six months a Supreme Court ruling invalidated one set of tariffs and a statute behind another expired mid-appeal. What does not move is how classification, origin and valuation actually work, which is what decides your bill and what you can still do something about.

The approach

Machinery, not numbers

Every other page offering to explain tariffs leads with a table of current rates. Those tables are the reason importers make confident, wrong decisions, because a rate table has a shelf life measured in weeks right now and nothing on the page tells you when it was written.

Three things decide what you actually pay: the classification of the goods, their country of origin, and the customs value. All three are determined by rules that have been stable for decades. The trade remedies layered on top move constantly. Understanding the first three is what lets you read the fourth without being at its mercy.

This is a plain-language summary to help you ask a licensed customs broker better questions. It is not legal or customs advice, we are not a licensed customs broker, and where this page and a broker's opinion differ, take the broker's.

The four you will meet

Which authority a duty comes from tells you how stable it is

This is the most useful and least discussed distinction in the whole subject. A duty imposed after a formal investigation behaves very differently from one imposed under a temporary emergency power, and if you are planning production a year out, that difference is the thing you actually need to know.

Section 301Trade Act of 1974

Response to another country's unfair trade practices, following a USTR investigation. This is the authority behind the long-running China tariffs.

How stableDurable. Built on a formal investigation with a public record, notice and comment, and periodic statutory review. It moves by process rather than overnight, and exclusions come and go.

DrawbackDuties paid under Section 301 are recoverable through duty drawback, up to 99 percent, where the goods are subsequently exported or used in qualifying manufacture.

Section 232Trade Expansion Act of 1962

National security grounds, following a Commerce Department investigation. Steel, aluminum, copper, autos and derivative articles.

How stableDurable, and broad in a way that catches people: derivative product lists have repeatedly expanded to cover finished goods whose makers never thought of themselves as steel importers.

DrawbackGenerally excluded from drawback by proclamation, with a narrow manufacturing exception for certain steel, aluminum and copper articles. Automotive duties allow no recovery at all.

Section 201Trade Act of 1974

Safeguard action where a surge of imports seriously injures a domestic industry. Time-limited by design and phased down over its term.

How stablePredictable, because the schedule and end date are set when it is imposed.

DrawbackEligible for drawback when the goods are exported or used in qualifying manufacture.

Section 122Trade Act of 1974

Balance-of-payments authority. Permits a temporary across-the-board surcharge, capped at 15 percent, for a limited period without an investigation.

How stableExplicitly temporary. It expires by its own terms unless Congress extends it, which is exactly what makes it useful to an administration and useless to plan around.

DrawbackA 10 percent surcharge was imposed under this authority in February 2026. The authority expired on 24 July 2026 and the surcharge remains under appeal at the Court of International Trade.

Statutory positions as at 26 August 2026. The February 2026 Supreme Court decision addressed only the International Emergency Economic Powers Act and left Sections 301, 232, 201 and 122 untouched. Verify current status against the Federal Register and CBP’s own trade remedy pages before making a decision on it.

How the number is reached

Classification and valuation

The parts nobody explains to a first-time importer, including the one that surprises everybody: getting this right is legally your job, not your broker’s.

Classification decides the rate, and it is your legal responsibility

Every imported article gets a ten-digit Harmonized Tariff Schedule code, and that code, not a description, determines the duty. US law places the duty of reasonable care for classification on the importer of record. Your customs broker files what you tell them. If the code is wrong, the liability is yours, and 'the broker chose it' is not a defense.

Classification is a legal exercise, not a search

It follows the General Rules of Interpretation in order, then the section and chapter notes, then the headings. Materials, function, and how the article is presented all matter, and small differences change the code. The composition of a garment, whether a device is principally a toy, whether something is a set: these are the arguments that decide the number.

You can ask CBP in advance, in writing, and be bound by the answer

A binding ruling request gives you a written classification you can rely on, and CBP publishes past rulings in a searchable database called CROSS. For a product you will import repeatedly, this converts an open-ended liability into a settled fact, and it is not expensive.

Duty is charged on a value with defined inclusions

Usually transaction value: the price actually paid or payable for the goods when sold for export to the United States, with specified additions. The additions are where importers get caught, because several of them do not look like part of the price.

Assists are dutiable and routinely forgotten

If you supply the factory with tooling, molds, dies, materials, or design and development work carried out outside the US, and you supply it free or at reduced cost, its value is generally added to the customs value. Paying for a mold separately does not remove it from the equation.

The rule that decides a China+1 move

Country of origin is a legal test, not a shipping address

If you are considering moving production out of China, this section is the one that matters. Whether the move changes your duty exposure at all turns on a single legal test, and the answer is frequently not the one people assume.

The practical consequence: the time to establish origin is before you commit tooling and volume, while the answer can still change which country you choose. A binding ruling request costs a fraction of a mold.

  1. Origin is not where it shipped fromA container loaded in Ho Chi Minh City is not automatically of Vietnamese origin. Origin is a legal determination about where the goods were produced, and it is decided independently of the port on the bill of lading.
  2. The test is substantial transformationFor most non-preferential origin questions, goods acquire the origin of the last country in which they were substantially transformed: where processing produced a new and different article of commerce, with a name, character or use distinct from the materials it came from.
  3. Assembly is sometimes enough and often is notSimple assembly, packaging, labeling, testing, or a light finishing step generally does not transform anything. Complex manufacturing that produces a genuinely different article generally does. Between those two poles is a large grey area that is resolved case by case, on the facts, in published rulings.
  4. If you are moving production, get a ruling before you move itThis is the single highest-value piece of advice on this page for anyone considering a China+1 shift. A binding ruling on origin, requested before you commit tooling and volume to a new country, tells you whether the move achieves what you are moving for. Doing it afterwards means discovering the answer as a bill.
  5. Getting origin wrong deliberately is fraud, not planningRouting Chinese goods through a third country to disguise their origin, relabeling, or declaring an origin you know to be false are customs fraud. The exposure is not a corrected duty bill: it is penalties, seizure, and personal liability, and it is actively enforced. Any supplier offering to arrange this is offering to make you the importer of record on a fraudulent entry.
Lawfully

Six lawful ways to reduce your import duty

All six are established ways to reduce import duty legally, used routinely by companies with trade departments. Most importers under a certain size have never been told any of them exist.

Review your classification

The most common source of overpayment is a code chosen quickly years ago and never revisited. A review by someone who does this for a living, against the current schedule and published rulings, is the cheapest place to start.

Tariff engineering

Designing a product so that it lawfully falls in a different classification. This is legitimate and long-established, provided the article as imported genuinely is what the code describes. It has to happen at the design stage.

First sale valuation

In a multi-tier transaction, it can be possible to use the price in the first sale destined for export rather than the price you paid the middleman. The requirements are strict and documentary, and where it applies it reduces the value everything else is calculated on.

Duty drawback

Up to 99 percent of duties recovered on goods that are subsequently exported or used in qualifying manufacture. Eligibility differs sharply by program, so check which duties on your entry actually qualify.

Foreign trade zones and bonded warehouses

Duty deferred while goods sit, and not paid at all on goods that are re-exported. Whether it pays depends on how long inventory sits and what proportion leaves the country again.

Exclusions and preference programs

Exclusion processes open and close, and free trade agreements have their own origin rules that are stricter and separate from the substantial transformation test. Both are worth checking annually rather than once.

And the ones that are fraud

Transshipping through a third country to disguise origin. Relabeling goods with a false origin. Undervaluing an invoice, or splitting the real price across a second payment nobody declares. Misdescribing goods to reach a lower code.

These are not aggressive planning, and the question people actually type is whether transshipment is illegal. It is. These are false statements on a customs entry, and the entry is filed in your name as importer of record, which means the exposure is yours: penalties calculated on the value, seizure of the goods, and personal liability that does not stop at the company. It is actively enforced and the detection methods are better than most people assume.

If a supplier or an agent offers to handle any of this for you, they are offering to place a risk on you that they will not be carrying. That is worth knowing about them generally, not just about this.

In practice

Four of those in more detail

How to find your HTS code

Start at the Harmonized Tariff Schedule published by the US International Trade Commission, which is the actual schedule rather than a copy. Work down: chapter, then heading, then subheading, reading the section and chapter notes as you go because they exclude things that would otherwise seem to fit. Then search CROSS, CBP’s ruling database, for your product type and read how CBP reasoned about similar articles. Two products that look identical on a shelf can sit in different chapters because of what they are made of or what they principally do.

What you should not do is take a code from your supplier's invoice and file it. The supplier classified it for export from their country, under their own schedule, with no exposure to whether it is right for yours. If you will import the product repeatedly, convert the question into a settled fact with a binding ruling request.

Tariff engineering, and where the line is

Designing a product so that it lawfully falls into a different classification is long-established and legitimate. The classic examples are real: a garment's fibre blend crossing a threshold, a footwear upper's material proportion, whether an article is imported finished or requires further processing. Companies have done this openly for a century and the courts have repeatedly upheld it.

The condition is that the article as actually imported has to genuinely be what the lower code describes. Engineering the product is lawful. Describing it as something it is not, or making a cosmetic change purely to mislead while the commercial article is unchanged, is misclassification. The distinction is whether a knowledgeable person examining the goods at the port would agree with your description.

The first sale rule

Known in the trade as the first sale rule. Where goods pass through a middleman before reaching you, the customs value is normally the price you paid. In a qualifying multi-tier transaction it can instead be the price in the earlier sale, from the factory to the middleman, provided that sale was genuinely for export to the United States, was an arm’s-length transaction, and you can document it.

The saving is on the value everything else is calculated from, so it reduces the duty, and it compounds across every trade remedy stacked on top. The requirements are strict and documentary, and the documentation has to exist at the time rather than be assembled afterwards. This is worth a conversation with a customs professional if you buy through a trading company at any volume.

Assists: the value you supply that becomes dutiable

If you provide the factory with something free or below cost that is used to produce your goods, its value is generally added to the customs value. The common ones are tooling and molds you paid for separately, materials or components you supplied, and design, engineering or artwork developed outside the United States.

This catches people because none of it feels like part of the purchase price, and a mold invoiced as its own line looks like a capital item rather than an addition to the value of every unit it produces. The apportionment method is something you choose and document. Getting it wrong understates the value on every entry, which is the kind of error that compounds quietly until an audit finds all of it at once.

Check it yourself

The primary sources that stay right

This page will go stale. These will not, so use them rather than any secondary summary, this one included.

  • The Harmonized Tariff Schedule is published and searchable by the US International Trade Commission, and it is the actual schedule rather than somebody’s copy of it.
  • CROSS, CBP’s ruling database, holds published classification and origin rulings. If a similar product has been ruled on, the reasoning is there to read.
  • CBP’s trade remedy pages and CSMS messages carry operational guidance, including what is in force and how to file it.
  • The Federal Register is where changes are actually made. Anything real appears there before it appears in a newsletter.
  • A licensed customs broker is the only one of these that will give you an opinion on your specific goods, and is worth engaging before you place the order rather than when the vessel arrives.
Straight about this

We are not a licensed customs broker, and we will not guess your duty

Customs brokerage is licensed work. We coordinate freight and work directly with licensed brokers at every major US port of entry, and they classify the goods and file the entry. What we do that matters here is make sure classification and origin get asked about before you commit to a supplier, a country and a mold, because afterwards the answer is just a bill.

Questions

Frequently asked

What tariff will I pay on my product?

Nobody can tell you from a description or a photograph, and anyone who does is guessing with your money. The rate depends on the ten-digit HTS classification, the country of origin, and which trade remedies are in force on the day of entry. The reliable path is a classification opinion from a licensed customs broker, and for anything you will import repeatedly, a binding ruling from CBP.

Why does this page not list the current tariff rates?

Because they would be wrong within weeks and you might rely on them. As a single illustration of how fast this moves: on 20 February 2026 the Supreme Court held that IEEPA does not authorize tariffs, invalidating the reciprocal tariffs and the trafficking tariffs on China, Mexico and Canada. A 10 percent surcharge imposed under Section 122 in February 2026 saw that authority expire on 24 July 2026 and is still under appeal. Any table published here in January would have been actively misleading by March. What does not change is how classification, origin and valuation work, so that is what this page covers.

Are the struck-down tariffs being refunded?

The Supreme Court accepted that IEEPA duties paid are in principle subject to reimbursement and left the mechanics unresolved, and CBP began processing refunds. If you paid them, preserve your entry records and talk to a customs broker or trade counsel about your position and the applicable deadlines. This is squarely a matter for a licensed professional and we are not one.

If I move production to Vietnam, do the China tariffs stop?

Only if the goods are genuinely of Vietnamese origin, which is a legal question rather than a shipping one. The test is substantial transformation: whether what happens in Vietnam produces a new and different article of commerce. Final assembly of Chinese components frequently does not. Get a binding ruling on origin before you commit tooling to the move, not after.

Is transshipment illegal? A supplier offered to route via a third country.

No. Transshipment to disguise origin is customs fraud, and as importer of record you are the one who filed the false entry. The consequences run to penalties, seizure and personal liability, and it is actively enforced. A supplier who offers this casually is telling you how they treat risk that lands on somebody else.

Who is legally responsible for the classification?

You are. US law places a duty of reasonable care on the importer of record. A customs broker is your agent and files what you instruct; a good one will push back on a code they think is wrong, and the liability still sits with you. This is why a binding ruling is worth the effort for anything you import regularly.

Do you handle this?

We coordinate freight and work with licensed customs brokers who classify and file the entries. We are not a licensed customs broker, we do not classify goods, and we will not quote you a duty rate from a product photograph. What we will do is make sure the question is asked before you commit to a supplier, a country and a mold, which is when the answer can still change what you do.

What are Section 301 tariffs?

Additional duties imposed on specified Chinese-origin goods under Section 301 of the Trade Act of 1974, stacked on top of the ordinary duty rate in the tariff schedule. Whether they apply to you turns on the HTS classification and the country of origin of your goods, not on where you bought them or where they shipped from. Which lists are in force changes, so confirm the current position with your broker rather than any page including this one.

What is a CBP binding ruling, and should I get one?

A written determination from US Customs on how your specific product should be classified, which CBP is then bound by. It is worth doing when the classification is genuinely arguable and the duty difference across the plausible codes is large enough to matter across your volume. It takes time, so it belongs in the plan before the first big order rather than after a container is already on the water.

Do I have to declare tooling I paid for?

Usually yes. Tooling, molds, dies and design work you supply to the factory free of charge or below cost are assists, and their value generally has to be added to the declared customs value of the goods they help produce. It is one of the most commonly missed items in an entry, and it is the importer's responsibility rather than the factory's. Tell your broker about any tooling you paid for separately.

Get started

Ask before the mold is cut

Tell us the product and where you are thinking of making it. We will get the classification and origin questions in front of a licensed broker while the answer can still change the plan.

  • Licensed customs brokers at every major US port of entry.
  • Sourcing across China, wider Asia, Mexico, Europe and Canada, so origin is a choice rather than a constraint.
  • No invented duty rates, ever, from anyone here.

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