Practical, plain-English guides from the team building Tariffwise: how classification actually works, where the duty math hides, and the mistakes that cost importers real money.
An HS code reads left to right, broad to specific. Six digits are international, and the US adds four more, only two of which carry the duty rate. Here is what every segment means, how to read the rate columns and indent structure, and the rules that decide close calls.
Drawback refunds 99 percent of the duties, taxes and fees you paid on imports that later get exported or destroyed. Section 301 duties are refundable, Section 232 and AD/CVD are not, and the five-year clock is unforgiving. Here is how a claim actually works.
Japan has no comprehensive free trade agreement with the US, so most goods pay the ordinary MFN rate. But a Japan-specific Section 232 provision puts cars at a flat 15 percent, and a limited 2020 agreement zeroes the duty on machine tools, optics and pianos if you claim it.
You cannot avoid duty you legally owe, but you can lower it with tools CBP recognizes: getting the classification right, claiming an FTA, valuing on the first sale, running goods through a foreign trade zone, and claiming drawback on what you re-export. Here is how each one works.
Canadian goods that meet USMCA rules of origin enter the US duty-free, which covers most cross-border trade. What breaks that is metal content and trade remedies: steel and aluminum owe Section 232 on full value, and softwood lumber owes AD/CVD, both regardless of USMCA origin. Here is the structure.
Germany has no free trade agreement with the US, so German goods pay the standard MFN rate for their code: 2.5 percent on cars, near zero on most machinery and instruments. What moves the number is Section 232 and a policy layer that is changing month to month. Here is the durable structure.
A customs binding ruling is a written CBP decision that settles how your product will be classified before you import it. It costs nothing, usually takes about 30 days, and binds CBP at every US port. Here is how to request one and when it is worth the wait.
The harbor maintenance fee is 0.125 percent of cargo value on waterborne shipments, and unlike the merchandise processing fee it has no cap, so it keeps climbing with shipment value. Here is how it works, who owes it, why exports pay nothing, and how it compares to the MPF.
The UK has no comprehensive free trade agreement with the US, so British goods pay the standard MFN duty for the product code, plus a volatile 2026 policy layer and separate sector tariffs on steel, aluminum and cars. Here is the method, with a worked example.
The merchandise processing fee is a US customs user fee of 0.3464 percent of your goods value, capped between $33.58 and $651.50 per entry for 2026, and it applies even when the duty rate is Free. Here is how it is calculated, how it differs from duty and the HMF, and when it is waived.
Vietnam has no free trade agreement with the US, so you pay the standard MFN duty for the product code, which runs from zero on electronics to over 37 percent on footwear, plus a volatile 2026 policy layer. Here is the method, with a worked example.
A customs bond is a financial guarantee that CBP will be paid the duty on your imports, and it is required for almost every commercial entry over $2,500. Here is what it guarantees, the two types, what each costs, and when a self-filer needs one.
Shipped from Mexico does not mean duty-free. Goods pay zero only if they qualify under USMCA and you claim it correctly. Here is how qualification works, what certification you file, and the mistakes that turn a saved 5 percent into a repayment.
You can legally file your own customs entries, and for simple low-value shipments that works. But most importers hire a broker, and even then the classification stays your responsibility. Here is when a broker is worth it and what it costs.
Section 301 tariffs are the biggest number on most entries from China, and a plain lookup hides them. Here is how the four lists work, how to check whether your product is hit, and how the surcharge stacks on top of the base duty.
There is no single China duty rate. The real figure is your base HTS duty plus the Section 301 surcharge plus a couple of fees, calculated on customs value. Here is the exact method, with a worked example and the de minimis change.
The HS code is not something you look up once and guess. There is a method: name the function, walk the chapters, read the notes, then confirm the 10-digit US line. Here is the whole process on real products.
If you export from the US, you file a Schedule B number, not an HTS code, even though both grow from the same 6-digit HS root. Here is where they split, why it matters, and how to pick the right one.
They are two halves of the same number. The HS code is the 6-digit part the whole world shares; the HTS code is the 10-digit US extension that actually carries your duty rate. Here is exactly where one ends and the other begins.
Every product that crosses a border travels under a number. Here is what the Harmonized System actually is, how the digits break down, and why the difference between two near-identical codes can be worth thousands in duty.
The HS code answers "what duty applies". The ECCN answers "are you allowed to export this at all". Confusing the two is one of the most expensive mistakes in cross-border trade.
Duty is not a mystery fee. It is a rate, attached to a code, applied to a value. This guide walks the whole calculation on a real shipment, including where people go wrong.
Apparel is where classification gets expensive: duty rates run from single digits to over 30 percent, and the code hinges on knit vs woven, fiber content and who the garment is cut for.
If you price international products off the supplier invoice alone, you are guessing. The landed cost formula turns "what we paid" into "what it truly costs to get one unit onto the shelf".