US-China Tariff Calculator

# US-China Tariff Calculator: Section 301, 122 & Landed Cost Breakdown

Importing merchandise originating in China into the United States requires accounting for compound trade remedy tariffs established under Section 301 of the Trade Act of 1974, Section 122 tariffs, and standard Most-Favored-Nation (MFN) HTSUS duties. Ranging from 7.5% up to 25%+ on industrial equipment, electronics, consumer goods, apparel, and automotive parts, Section 301 surcharges stack directly on top of base tariffs. Using our specialized calculator, US importers can input FOB values, select active 301 Lists (List 1, 2, 3, or 4A), incorporate Section 122 rates, and calculate itemized CBP Form 7501 entry costs.

The US-China Compound Tariff Stacking Formula

Tariff assessment for China-origin goods follows a strict ad-valorem stacking hierarchy assessed on the FOB Customs Value:

1. Customs Value (FOB): Total Invoice Purchase Price in USD (excluding ocean freight & insurance)
2. Base MFN Tariff: Customs Value × Statutory HTSUS Rate%
3. Section 301 Surcharge: Customs Value × Section 301 List Rate% (7.5% or 25.0%)
4. Section 122 Emergency Tariff: Customs Value × 10.0% (where applicable)
5. Merchandise Processing Fee (MPF): (Customs Value × 0.3464%), bounded between $31.67 and $614.35
6. Harbor Maintenance Fee (HMF): Customs Value × 0.125% (Ocean Freight Only)

Total Tariff Rate (%) = MFN Rate% + Section 301 Rate% + Section 122 Rate%

Section 301 Tariff Tranches & Product List Overview

The Office of the United States Trade Representative (USTR) categorizes China-origin products into four major statutory lists:

| Section 301 Tranche | Original Enforcement Date | Statutory Surcharge Rate | Product Coverage / Industry Sectors |

|---|---|---|---|

| List 1 ($34B) | July 6, 2018 | 25.0% | Industrial machinery, medical devices, aerospace parts |

| List 2 ($16B) | August 23, 2018 | 25.0% | Semiconductors, plastics, chemical polymers, electronics |

| List 3 ($200B) | September 24, 2018 | 25.0% | Auto parts, furniture, building materials, handbag products |

| List 4A ($120B) | September 1, 2019 | 7.5% | Consumer electronics, footwear, apparel, home goods |

Strategic Note: Recent USTR four-year reviews have increased Section 301 rates on strategic Chinese goods—raising tariffs on electric vehicles to 100%, solar cells to 50%, and lithium-ion batteries and medical gloves to 25%–50%.

Worked Landed Cost Calculation: $100,000 China Consumer Goods Batch

Let us model the complete CBP entry breakdown for a $100,000 USD consignment of consumer electronic accessories (HTSUS 8504.40.95 - List 4A) shipped via ocean freight from Shenzhen to Long Beach, CA.

Shipment & Tariff Parameters:

• FOB Invoice Price: $100,000.00 USD
• Ocean Freight & Insurance: $6,000.00 USD (Itemized separately)
• Entered Customs Value: $100,000.00 USD
• Base MFN Duty Rate: 2.0%
• Section 301 Surcharge (List 4A): 7.5%
• Section 122 Emergency Rate: 10.0%
• Combined Tariff Burden: 2.0% + 7.5% + 10.0% = 19.5% Effective Duty

Step-by-Step Financial Calculation:

1. Customs Value (FOB): $100,000.00 USD
2. Base MFN Duty (2%): $100,000 × 2.0% = $2,000.00 USD
3. Section 301 Tariff (7.5%): $100,000 × 7.5% = $7,500.00 USD
4. Section 122 Tariff (10%): $100,000 × 10.0% = $10,000.00 USD
5. Subtotal Tariff Duties: $2,000 + $7,500 + $10,000 = $19,500.00 USD
6. MPF Assessment (0.3464%): $100,000 × 0.003464 = $346.40 USD
7. HMF Assessment (0.125%): $100,000 × 0.00125 = $125.00 USD
8. Total CBP Entry Summary Payment (Form 7501): $19,500 + $346.40 + $125.00 = $19,971.40 USD
9. Gross Landed Outlay: $100,000 (Goods) + $6,000 (Freight) + $19,971.40 (CBP) = $125,971.40 USD

How to Use Our China Tariff Calculator

To calculate your exact US-China landed cost:

1. Enter the FOB Invoice Value in USD.
2. Enter your 10-Digit HTSUS Code or select your product category.
3. The tool automatically detects whether your product falls under Section 301 List 1, 2, 3, or 4A and applies the statutory 7.5% or 25% surcharge.
4. Toggle Section 122 emergency duties and select ocean vs air transport for HMF calculations.
5. Review the downloadable itemized summary showing base MFN, Section 301, Section 122, MPF, and HMF fees.

Frequently Asked Questions

How do I check if my Chinese product has an active USTR Exclusion?

USTR product exclusions are published in the Federal Register. Most legacy exclusions have expired, but specific machinery and medical exclusions were extended. Importers must report specialized 9903.88 HTSUS exclusion codes on Form 7501 to claim 0% 301 rates.

Does shipping China-origin goods through a third country (e.g. Vietnam) bypass Section 301?

No. Under 19 CFR § 134 rules of origin, simply transshipping or performing minor packaging in a third country does NOT change origin. Unless substantial transformation occurs, the goods remain "Made in China" and incur full Section 301 duties.

How is Country of Origin declared on CBP Form 7501 for China goods?

Importers must report "CN" as the country of origin and enter the corresponding 9903.88 Section 301 HTSUS line item directly above the primary 10-digit HTSUS classification code.

Can Section 301 duties be refunded through Duty Drawback?

Yes. If imported China-origin goods subject to Section 301 duties are subsequently re-exported from the US unused or incorporated into manufactured export products, importers can claim up to 99% Duty Drawback under 19 U.S.C. § 1313.

Are personal e-commerce shipments from China exempt from Section 301?

Following the suspension of Section 321 de minimis exemptions for China-origin goods, all postal and express courier parcels from China pay full ad-valorem tariffs or flat entry surcharges regardless of low invoice value.

Strategic Supply Chain Mitigation Options for China Tariffs

Importers facing steep Section 301 and Section 122 tariffs on China-origin merchandise can evaluate statutory duty mitigation programs:

• Substantial Transformation & Dual Sourcing: Shift primary manufacturing stages to third-party countries (e.g. Vietnam, India, Mexico). To legally alter country of origin from China, the foreign processing must result in a new and distinct article of commerce with a different name, character, and use.
• Foreign Trade Zones (FTZ): Admit China-origin components into a US FTZ to defer duty payment until final domestic distribution. Goods incorporated into products exported from the FTZ out of the US exit duty-free.
• Duty Drawback (19 U.S.C. § 1313): Reclaim up to 99% of paid Section 301 duties when imported China merchandise is subsequently exported unused or incorporated into manufactured exports within 5 years.

Detailed USTR Section 301 Exclusions & Verification

For importers managing China-origin supply chains:

• Checking Active Exclusions: Cross-reference 9903.88 Exclusion Subheadings published in the HTSUS Chapter 99 schedule.
• Reporting Requirements: List the 9903.88 exclusion code on Line 1 of CBP Form 7501 to prevent automated 25% tariff assessment.