The Bottom Line Up Front
When importing from China, your landed cost typically runs 25–250%+ above the FOB price. The spread depends on three variables: HTS code (sets the duty rate), Section 301 (7.5–25%), and AD/CVD (0–400%+).
Many importers calculate FOB + shipping and then discover the actual landed cost is far higher than expected.
Step 1: Get the Right HTS Code
Don't let your supplier classify your product — they have no incentive to find the code with the highest duty rate. Classify it yourself, or use CVDar to enter a product description and get AI-generated candidates.
Step 2: Check All Three Duty Layers
MFN Base Rate: The standard customs duty. Many products are Free, but textiles, footwear, and some metal products carry 5–20% base rates.
Section 301: If the goods are of Chinese origin, this almost certainly applies. Lists 1–3 add 25%, List 4A adds 7.5%.
AD/CVD: Not sure if this applies? Search on CVDar. There are 700+ active orders, and steel, furniture, solar, and aluminum extrusions are the major hotspots.
All three layers stack. That's what you actually owe.
Step 3: Calculate Landed Cost
For a $10,000 (FOB) shipment from China, here's what else you're paying:
| Item | Cost | |------|------| | Section 301 (25%) | $2,500 | | MPF (0.3464%, $31.67–$614.35) | $34.64 | | HMF (0.125%, ocean freight) | $12.50 | | Ocean freight (40ft, China → US West Coast) | ~$2,800 | | Insurance (CIF × 0.3% × 110%) | ~$35 | | Total additional cost | ~$5,382 |
FOB $10,000 → landed ~$15,382. Freight is the biggest line item, but duties are not far behind.
Use CVDar's landed cost calculator: enter HTS code, goods value, select FOB or CIF, and get an instant breakdown.
Step 4: Check for Exclusions
Some Section 301 products have active exclusions. CVDar shows "✅ X exclusions found" on HTS detail pages. An exclusion exists doesn't mean it automatically applies — you need to verify that your specific product matches the exclusion description.
Step 5: Have Your Customs Broker Confirm
AI tools and online calculators are estimates. A customs broker gives you a binding classification. Before placing a large order, spend a few hundred dollars to have your broker confirm the HTS code and duty rate. It's orders of magnitude cheaper than back duties and penalties.
Common Traps to Avoid
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"Routing through Vietnam means it's not Chinese, right?" — Wrong. CBP looks at the country of origin, not the transit port. Whether processing in Vietnam is enough to change origin depends on strict "substantial transformation" rules.
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"My supplier said the duty rate is 0%" — They're looking at the MFN rate. They didn't factor in Section 301 or AD/CVD.
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"HS Code and HTS Code are the same thing" — The first 6 digits are harmonized internationally. The last 4 are US-specific, and duty rates can diverge at those digits.