Import Duty

Import duty is a tax levied by customs authorities on goods imported into a country. It is paid immediately upon release to the importing country by the importer of record, who is responsible for filing the proper documentation required for the import. The Harmonized Tariff Schedule (HTS) provides duty rates for virtually every item that exists, setting out the tariff rates and statistical categories for all merchandise imported into the United States. Duty rates are product-specific, ranging from 0% to as high as 37.5%, with most everyday consumer goods falling between 2.5% and 6%.

A FedEx Express air cargo shipment (AWB prefix 023-45678901) carries electronic components from Vietnam valued at $25,000. Using HTS code 8542.31.0001 for integrated circuits, the shipment incurs a 0% base duty rate, but additional Section 122 surcharge of 15% applies, resulting in $3,750 in import duty plus standard processing fees. An Emirates SkyCargo shipment (AWB prefix 176-98765432) transports textile goods from India worth $50,000, classified under HTS 6109.10.0040 for cotton t-shirts, which carries a 16.5% duty rate totaling $8,250 in import duties upon arrival at JFK airport.

• customs duty
• tariff
• import tax
• customs charges

How is import duty calculated for air cargo shipments arriving in the United States?

Import duty is calculated based on the CIF value (Cost, Insurance, Freight) multiplied by the HTS-specific duty rate. Additional fees include Merchandise Processing Fee (MPF) at 0.3464% with minimum $32.71 and maximum $634.62, plus potential Section 122 surcharge at 15% and Section 301 tariffs for Chinese goods. Air cargo is exempt from Harbor Maintenance Fee (HMF) which only applies to ocean freight at 0.125%.

What determines the import duty rate for air cargo classified under the HTS system?

Import duty rates are determined by the 10-digit HTS classification code assigned to the goods. The U.S. International Trade Commission maintains over 17,000 unique HTS codes with rates ranging from 0% to 37.5%. Rates vary by product type, country of origin, and applicable trade agreements. The official HTS database at hts.usitc.gov provides current duty rates, with CBP making final classification determinations.