All You Need to Know About US Import Tax and Duties

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
   • HTS Duty
   • Additional Tariff for Goods from China and Hong Kong
   • Baseline Tariff
   • Reciprocal Tariff
   • Excise Tax
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 (COO), and shipping value.

It's important to note that duties are based on where goods are manufactured, which is referred to as country of origin, not where they are shipped from.

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

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, 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.

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 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.

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).

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. 

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