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All You Need to Know About US Import Tax and Duties

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If you are shipping goods to the United States, either for personal or business reasons, it is important to understand how US import tax and duties work. These charges can affect your total shipping cost, influence how quickly your shipment clears customs, and determine whether you face any unexpected delays.

This guide is here to help you make sense of US import duties in 2025.

Whether you are sending goods from Malaysia or other countries, you will learn the basics you need to manage your shipment confidently every time, under all circumstances. 

This article covers: 

  1. Types of U.S. Import Duties and Taxes
  2. Duty Exemptions
  3. Entry Types
  4. Processing Fees
  5. How to Calculate U.S. Import Duties and Taxes
  6. How to Pay U.S. Import Duties
  7. Who Pays Import Duties
  8. Final Recap: What Duties Apply to Your U.S. Imports in 2025

Types of Duties and Taxes

When goods enter the United States, customs duties and taxes are applied based on several factors including product type, country of origin, and shipping value.

Aside from the primary duty, which is imposed on nearly all imports based on the product’s HTS code, certain shipments may also be subject to special trade surcharges introduced through policy actions such as the 2025 baseline tariff or reciprocal tariffs, and excise taxes, which apply only to regulated goods like alcohol, tobacco, or fuel.

Here’s a closer look at each type of duty or tax, how it’s calculated, and when it comes into play:

  1. The Harmonized Tariff Schedule (HTS) duty
  2. Baseline Tariff
  3. Reciprocal Tariff 
  4. Excise Tax

Harmonized Tariff Schedule (HTS) Duty

The Harmonized Tariff Schedule (HTS) duty (also known as the U.S. import tax, customs duty, or standard import tariff) is the primary duty imposed on almost all commercial shipments and personal shipments valued over USD 800 (approx. RM3,720) in total.

Duty rates are product-specific, generally ranging from 0% to 37.5%, with most common consumer goods falling between 2.5% and 6%.

These rates are based on the product’s classification under the U.S. Harmonized Tariff Schedule and are calculated using the total CIF value (Cost, Insurance, and Freight) of the shipment.

These standard duties apply to all imports into the U.S..

However, goods with Country of Origin (COO) of China or Hong Kong are subject to additional tariffs under the U.S. trade enforement actions. 

Additional Tariffs for Goods from China and Hong Kong

If your shipment contains goods that were manufactured in China or Hong Kong, U.S. Customs will apply additional tariffs on top of the HTS duty, regardless of whether the parcel is shipped from Malaysia or elsewhere.

These extra duties fall under Section 301 trade measures, which target Chinese-origin goods:

  1. HTS duty: Applies based on product classification.
  2. Section 301 Tariff: Applies on top of the standard HTS duty charge. Rate is also based on product classification
    • 25% for products listed under Section 301 Lists 1–3 (e.g., tools, electronics components)
    • 7.5% for products listed under List 4A (e.g., apparel, footwear, household goods)

Under 2025 U.S. trade-enforcement measures, all applicable duties stack on top of one another. They are charged in cumulative basis. 

Goods with COO of Hong Kong

Under the 2025 U.S. customs rules, goods originating from Hong Kong are treated the same as those from China. This means:

  1. Section 301 tariffs apply to Hong Kong-origin goods
  2. No separate treatment or exemption exists

Even if the parcel is exported from Malaysia, the country of origin remains Hong Kong or China, unless the goods undergo substantial transformation that changes their origin.

ScenarioShipment TypeTotal Shipment Value (USD)Country of OriginDoes HTS Apply?Additional Trade Tariff (Section 301)Reason
Single item shipment valued at USD 600 (non-restricted product, not from China/Hong Kong).Personal or Commercial600MalaysiaNoNoEligible for de minimis exemption (total shipment value ≤ USD 800)
Shipment contains 3 items valued at USD 300 each, shipped together in one package.Personal or Commercial900MalaysiaYesNoTotal value exceeds de minimis threshold
Single item shipment valued at USD 750, manufactured in China.Personal or Commercial750ChinaYesYesChina-origin shipments are excluded from de minimis exemption and subject to Section 301 duty.
Commercial shipment of clothing, declared value USD 2,200.Commercial2,200MalaysiaYesNoValue exceeds de minimis threshold and product is dutiable.
Single item gift shipment valued at USD 799, non-restricted item.Personal799United KingdomNoNoEligible for de minimis exemption.
Singlem item personal shipment valued at USD 850, non-restricted item.Personal850MalaysiaYesNoValue exceeds de minimis threshold.
Personal shipment of USD 750, manufactured in Hong Kong.Personal750Hong KongYesYesHong Kong-origin is treated as China; excluded from de minimis and subject to 301 duty.
Commercial shipment of gadgets worth USD 3,000, made in China, shipped from Malaysia.Commercial3,000ChinaYesYesSubject to standard HTS and Section 301 tariffs based on origin; de minimis does not apply.
Personal shipment of USD 1,500, made in Vietnam.Personal1,500VietnamYesNo.HTS duty applies; no Section 301 tariff on Vietnam-origin goods
Commercial shipment of kitchenware valued at USD 1,200, made in Hong Kong, shipped from Singapore.Commercial1,200Hong KongYes YesCountry of origin is Hong Kong, which is subject to Section 301

Baseline Tariff (2025 Trade Policy Tariff - In Effect)

The Baseline Tariff is a new 10% universal surcharge introduced in 2025 under a broad U.S. trade policy update.

It is applied on top of the standard HTS duty and calculated using the same CIF (cost, insurance, and freight) value of the shipment.

This surcharge applies to imports from countries that do not have a preferential trade agreement with the United States, including Malaysia. Countries with existing Free Trade Agreements (FTAs), such as Canada, Mexico, Singapore, and South Korea, are exempt.

Unlike HTS duties, which vary by product type, the Baseline Tariff is non-product-specific and applies broadly. It is implemented through executive action and aims to standardize import costs from non-FTA countries.

This surcharge is mandatory for all non-exempt countries and may be updated depending on future trade or geopolitical developments. Before you ship, make sure to check the latest tariff updates on the CBP or USTR websites or message us on social media if you need help verifying.

Reciprocal Tariff (2025 Trade Policy Tariff - On Hold)

The Reciprocal Tariff is a policy-driven surcharge of up to 24%, introduced as part of the United States’ broader 2025 trade enforcement measures.

Unlike the HTS duty or Baseline Tariff, which are either product-based or universally applied, the Reciprocal Tariff targets specific countries that are deemed to have unfair or unbalanced trade practices with the U.S.

This surcharge is not tied to any specific product or industry. Instead, it applies to all imports from a listed country when activated. 

It is calculated using the same CIF (cost, insurance, and freight) value and is applied on top of the standard HTS duty and the Baseline Tariff where applicable.

Malaysia is currently included in the list of countries subject to the Reciprocal Tariff, but enforcement has been paused until 8 July 2025.

Although inactive at the moment, this policy is still in effect and may be resumed or updated without notice.

Hence, it’s important to check the latest tariff updates on the CBP or USTR websites, or message us on social media to verify before shipping to the United States.

Excise Tax

Excise duty is a federal tax imposed on specific regulated goods, such as alcohol, tobacco, fuel, and certain luxury items, that are shipped into the United States.

These duties are collected by U.S. Customs and Border Protection (CBP) on behalf of the Internal Revenue Service (IRS) and are enforced in addition to any standard import tariffs or surcharges, including HTS duty, Baseline Tariff, and Reciprocal Tariff.

Excise duty applies to both commercial and personal shipments if the imported goods fall under excise classifications. There are no exemptions based on the country of origin, including Malaysia.

Unlike HTS or Baseline Tariffs, excise duties are typically quantity-based rather than value-based. For instance:

  • Distilled spirits: USD 13.50 per proof gallon
  • Cigarettes: USD 1.01 per pack of 20
  • Gasoline: USD 0.184 per gallon

Excise duties are assessed at the time of customs clearance and must be paid along with other import-related charges.

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Here’s a quick reference table summarizing the key import duties and taxes that could apply to all shipments entering the United States from most countries, including Malaysia:

Duty or TaxWhen it AppliesRate RangeAdditional GuidanceImpact on Malaysian Shipments (under 2025 trade policy shift)
HTS DutyAny dutiable goods (value > USD 800)0% to 30%+ depending on HTS codeLook up the exact rate using HTS tariff code. Calculate with CIF value. No change. Standard HTS rule apply.
Baseline TariffShipments from all non-FTA countries10% surcharge on CIF value

 

Applied on top of HTS duty; uses same CIF value.

Additional 10% on top of base duties. 

Status: In effect (subject to policy shift)

Reciprocal TariffCountries flagged for trade imbalanceUp to 24% surcharge on CIF value

On hold, but subject to policy shifts. 

 

Applied on top of HTS duty; uses same CIF value.

Up to 24% added on top of all other duties if enforced. 

Status: On hold (subject to policy shift)

Excise DutyAlcohol, tobacco, fuel, luxury goods (personal or commercial shipments)Quantity-based (e.g. per liter/unit)Applies in addition to other duties. No change. Standard excise rules apply. 

Duties Exemption

Depending on their value, contents, and purpose, some shipments entering the U.S. may qualify for exemptions from duties.

De Minimis Exemption (USD 800 Rule)

For personal shipments, goods valued at USD 800 or less per recipient per day are typically exempt from HTS duty under Section 321 of the Tariff Act of 1930.

To qualify:

  • The declared value must not exceed USD 800 per recipient per day.
  • The goods must be for personal use only and not for resale or commercial purposes.
  • The shipment must use an approved entry type, such as Section 321, a simplified clearance method that allows low-value personal shipments to enter the U.S. duty-free.
  • A 10-digit HTS code should be provided for accurate classification, especially under stricter enforcement rules.
  • The shipment must not be split to stay under the threshold. CBP may combine multiple same-day shipments sent to the same recipient.

For commercial shipments, the de minimis exemption typically does not apply, even if the value is under USD 800. U.S. Customs and Border Protection (CBP) may grant an exemption in rare cases, but businesses should not rely on this when calculating duty liability.

The de minimis threshold only exempts you from the standard HTS duty. It does not apply to excise taxes or policy-based surcharges such as the Baseline Tariff or Reciprocal Tariff if those are applicable to your shipment.

Other Duty Exemption Scenarios

  1. Samples or promotional items marked with no commercial value may be exempt if declared properly.
  2. U.S. goods returned without having been altered abroad can often be re-imported duty-free with appropriate documentation.
  3. Temporary imports under bond (e.g., for exhibitions or repairs) can enter without paying duties if returned within the stipulated timeframe.

To qualify for any exemption, proper declaration, documentation, and HTS code classification are essential. 

It's important to note that, effective February 2025, the de minimis rule no longer applies to goods with a Country of Origin (COO) of China or Hong Kong, regardless of their shipping origin.

These goods now require either informal or formal entry processing and are subject to applicable import duties.

This update means that while eCommerce purchases from any other country valued between USD 800 and USD 2,500 (approximately MYR 3,720 to MYR 11,625) can still benefit from simplified clearance with minimal customs intervention, goods with a COO of China or Hong Kong, along with any other imports valued above USD 800, must go through conventional customs clearance.

Entry Types and Fees

When shipments enter the U.S., they’re processed under a specific entry type, determined by the shipment’s value, contents, and purpose:

  1. Formal Entry
  2. Informal Entry
  3. Section 321

Shippers generally don’t control the entry type. This is handled by customs brokers or logistics providers like DHL Express.

Still, it’s important to understand how entry types work, since they affect duty applicability, processing speed, exemptions, and fees.

For personal shipments, entry types are mostly background knowledge. If your package qualifies under the USD 800 de minimis rule, we (or any other logistic providers) will process it under Section 321, allowing duty-free clearance.

For commercial shipments, the entry type plays a larger role. Thresholds like the USD 2,500 rule for informal entries impact paperwork, cost, and speed. Knowing this helps your business estimate duties more accurately.

Thus, you must declare your shipment accurately, including its value, item type, and complete documentation to ensure the customs broker or logistics provider assigns the correct entry type.

When goods arrive in the U.S., they will be processed through customs under one of several entry types. That is determined based on the shipment’s value, contents, and purpose.

Entry TypeAboutFeeWho uses thisLimitation
Informal EntryFor low-value shipments (typically under USD 2,500) that are not restricted or subject to special handling, informal entry allows for a quicker release with minimal paperwork.

No fee applies to goods valued below USD 800.

A USD 2.10 (manual) or USD 6.00 (automated) Merchandise Processing Fee (MPF) applies to goods valued between USD 800 and USD 2,500

Individuals or small businesses importing consumer goods in small volumes.None
Formal EntryRequired for commercial shipments valued over USD 2,500, or for goods that require special permits, licenses, or are subject to other regulatory controls.

Merchandise Processing Fee (MPF): 0.3464% of declared value (min USD 31.67, max USD 614.35)

Harbor Maintenance Fee (HMF): 0.125% of cargo value (only if arriving by sea; does not apply to air shipments).

Businesses or importers moving goods in commercial quantities.None
Section 321 EntryA special informal entry method for personal shipments under USD 800, allowing for clearance without duties or fees.NoneIndividuals shipping personal effects or online shoppers. One shipment per day per recipient

 

More About Processing Fees

There are two types of processing fees:

  1. Merchandise Processing Fee (MPF)
  2. Harbor Maintenance Fee (HMF) - Do not impose to air freight. Only applies to sea shipment.

Merchandise Processing Fee (MPF)

The Merchandise Processing Fee (MPF) is a U.S. Customs charge applied to most imports.

For formal entries (goods over USD 2,500), it’s calculated at 0.3464% of the declared value, with a minimum of USD 31.67 and a maximum of USD 614.35.

For informal entries (USD 800–2,500), a flat fee applies. USD 2.10 for manual processing or USD 6.00 for electronic filing.

No MPF is charged on shipments valued under USD 800 that qualify under Section 321.

The fee is typically collected by your logistics provider (e.g., DHL Express) and billed to you during customs clearance or prior to delivery.

Harbor Maintenance Fee (HMF)

The Harbor Maintenance Fee (HMF) is a U.S. customs fee charged at 0.125% of the cargo value and applies only to goods arriving by sea.

It is used to fund the maintenance of U.S. ports and harbors.

If you’re shipping by air, this fee does not apply, so air shippers don’t need to worry about it.

Calculating Customs Duties

To estimate the U.S customs duty of your shipment, you need 3 information: 

  1. HTS code of your goods
  2. Correct duty rate
  3. Total CIF value (Cost, Insurance, and Freight)

Step 1: Identify HTS Code

Start by identifying the correct 10-digit Harmonized Tariff Schedule (HTS) code for your product.

This code determines the base duty rate imposed by U.S. Customs. You can search for it via the official HTS schedule website or  through DHL MyGTS, following this guide

Step 2: Check Duty Rate

Once you have the HTS code, use it to look up the applicable import duty rate. This is your HTS base rate.

If other duties apply, like the Baseline Tariff, Reciprocal Tariff, or Excise Duty, you’ll need to factor those in too, as outlined in the earlier sections.

Similarly, you can manually check applicable duties and their rates on the CBP website, or use DHL MyGTS to get every information you need in one place, including U.S. HTS codes, your country’s HS codes, estimated duties, and other required documents. 

Step 3: Determine CIF Value

The CIF value includes:

  • Cost of goods (the invoice value)
  • Insurance during shipment
  • Freight charges paid to your logistics provider

This total is the baseline used to apply most U.S. import duties, including the HTS rate and policy surcharges.

For example, if your shipment includes three items valued at USD 300 each, your total cost is USD 900. If you paid USD 50 for shipping and USD 10 for insurance, the CIF value becomes USD 960.

Step 4: Apply Duty and Surcharges to Estimate the Duty Rates

With your CIF value and all applicable duty rates in hand:

  1. Multiply the CIF value by the HTS rate.
  2. Add 10% Baseline Tariff, if applicable.
  3. Add Reciprocal Tariff (e.g., up to 24%) if applicable.
  4. Add Excise Duty, based on product quantity (not value).

This is how the calculation goes, taking an handheld umbrella as an example.

Item: Handheld Umbrella

HTS Code: 6601.10.0000

Quantity: 10 units

Price per unit: USD 10

CIF Value

ComponentValue
Goods ValueUSD 100 (10 units x USD 10)
InsuranceUSD 2
Freight / Shipping CostUSD 20
Total CIF ValueUSD 122

 

Applicable Duties

HTS Duty Rate: 4%

Excise Duty Rate: Not applicable

Baseline Tariff (if in effect): 10%

Reciprocal Tariff (if in effect): 24%

ComponentValue
HTS Duty AmountUSD 4.88 (4% x USD 122 CIF)
Excise DutyUSD 0 (not applicable)
Baseline Tariff USD 12.20 (10% x USD 122 CIF)
Reciprocal TariffUSD 29.28 (24% x USD 122 CIF)
Total Estimated DutiesUSD 46.36 (HTS + Baseline + Reciprocal)

Duties and Taxes Payment Method

If your imported shipment is subject to duties, U.S. Customs will typically notify your logistics provider or customs broker with the total amount due and the payment deadline.

For most shipments, licensed logistics providers like DHL Express handle this entirely. We pay the duties upfront on your behalf, then invoice you for reimbursement either before or at the time of delivery.

However, if you're managing your own customs clearance or using a third-party broker, here are 3 ways to pay the import duties:

Option 1: Mail to Customs and Border Protection (CBP)

You can prepare a check or money order, issued by a U.S. bank, based on the full duty amount and mail it directly to U.S. Customs and Border Protection (CBP).

Option 2: Pay In-Person at CBP Ports of Entry

Visit a designated CBP payment location to pay in person.

Accepted methods include:

  1. Cash (US Dollar)
  2. Check or money order from a U.S. bank
  3. Credit card (available only at select ports)

Option 3: Pay via Automated Clearinghouse (ACH) System

This is an electronic payment method where businesses can authorize:

  1. ACH Debit: CBP pulls the funds directly from your designated account.
  2. ACH Credit: You initiate the transfer from your bank to CBP.

Either way, you will need an ACH account for this. 

To estimate duties in advance, request a commercial invoice from your supplier showing the full declared value. This will help you anticipate your total charges based on the CIF value and applicable rates.

Who Pays the Import Duties

If you're a personal shipper sending goods for personal use, like a gift or an online purchase, you're typically responsible for paying any duties or taxes before the shipment can be released and delivered.

For business or commercial shipments, who pays depends on the agreed shipping terms between the buyer and seller.

These are usually defined by Incoterms:

  • DDP (Delivered Duty Paid): The shipper covers all import duties and taxes upfront. This is common in online retail or B2C deliveries.
  • DAP/DDU (Delivered at Place/Delivered Duty Unpaid): The receiver or importer is responsible for duties and taxes upon arrival. This is standard in B2B transactions.

In most business cases, the buyer is responsible unless otherwise agreed. Always check your shipping agreement to confirm who is responsible for paying the duties.

Final Recap: What Duties Apply to Your U.S. Imports in 2025

U.S. import duties and regulations may seem complex at first, but once you understand the key components, they’re easier to navigate than you think.

Even with the 2025 updates that introduced new surcharges affecting most countries, including Malaysia, the structure of U.S. duties remains clear and manageable.

As of now, here’s the status of all U.S. duties that may apply to your shipments from Malaysia: 

  • HTS Duty: This still applies under the same rules and is not affected by the 2025 policy shift.
  • Excise Duty: This still applies under the same rules and is not affected by the 2025 policy shift.
  • **Baseline Tariff: A new 10% surcharge on CIF value, introduced under the 2025 policy shift. It is currently in effect for countries without FTAs, including Malaysia.
  • **Reciprocal Tariff: A potential surcharge of up to 24%, introduced under the 2025 policy shift. It's announced but not yet enforced for Malaysia as of writing.

To avoid unexpected charges or shipment delays, always verify the current duty policies before shipping. The easiest way to stay ahead is to work with experienced logistics providers like DHL Express.

If you’re a business shipper, consider signing up for a DHL Express Business Account.

Our certified customs experts and your dedicated account manager will handle the complexities of U.S. duties and policy changes for you. So you can focus on growing your business all the time. 

FAQ

Yes. Any goods valued over $800 USD (de minimis value) are subject to import duty tax.

However, items valued below $800 are exempt from duty, unless they fall under the De Minimis exception list

The US import duty tax is calculated by multiplying the duty rate by the total value of the goods. The formula is as follows:

[ Item’s value x Duty rate = Duty Amount ]

To calculate the import duty tax, you'll need to know the HTS code of your import goods.

You can find this information on the official website of the United States government or consult with a licensed customs/freight broker like DHL Express.

US customs duties can be paid to U.S. Customs and Border Protection (CBP) through the following methods:

1. In-person visit to designated CBP locations.

2. Mail the payment directly to CBP.

3. Electronic Payment via Automated Clearinghouse (ACH) system.

You can only pay with this method if you have an ACH payment account with ACH.

It is range between 0 to 37.5% with the typical rate being 5.63%. A flat rate of 3% applies to e-commerce purchases that are in excess of the US import tax threshold limits.

You can import up to $800 worth of goods from Malaysia without paying duty under the personal exemption.

For e-commerce purchases that are shipped into US, duty-free entry is granted for items valued at less than $1,600.

Import duties and taxes is typically paid by the receiver.

If you, as an exporter would like to pay the duty and tax on behalf of the receiver, you will request it from your international shipping service provider. 

For DHL Express customer, you can do it through MyDHL+ with just one click, switching the shipping mode from export to import. 

As of now, the United States does not impose a VAT tax on imports.

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