Country Regulation
      Back to home
      1. Help Center
      2. Customs Clearance
      3. Country Regulation

      China and Hong Kong-Made Goods: US Duty Structure

      This comprehensive duty structure represents the most restrictive trade regime the US has implemented, requiring sophisticated compliance strategies and potentially fundamental supply chain restructuring for businesses importing from China and HK

      Products manufactured in China or Hong Kong face the most complex and highest cumulative duty structure in US import regulations. The US currently treats Hong Kong origin goods identically to China for all customs and tariff purposes.

      Current Duty Layers (As of September 2025)

      1. Base Import Duty (HTS Code-Based)

      2. Section 301 Tariffs

      • Coverage: Four lists affecting approximately $370 billion worth of Chinese goods

      • Rates by List:

        • List 1: 25% (July 2018, $34 billion worth of goods)

        • List 2: 25% (August 2018, $16 billion worth of goods)

        • List 3: 25% (September 2018, $200 billion worth of goods)

        • List 4A: 7.5% (September 2019, $125 billion worth of goods)

      • Four-Year Review Increases (Effective 2024-2026):

        • Electric vehicles: 100%

        • Solar cells: 50%

        • Semiconductors: 50%

        • Steel and aluminum: 25%

        • Lithium-ion batteries: 25%

      3. Reciprocal/"Liberation Day" Tariffs

      • Historical Progression:

        • April 2025: 34% imposed

        • April 8, 2025: Increased to 84%

        • April 9, 2025: Further increased to 125%

        • Current Rate (May 2025): Temporarily reduced to 10% for 90-day period

      • Fentanyl Tariff: Additional 20% remains in place

      • Total Current Reciprocal Rate: 30% (10% + 20%)

      4. Anti-Dumping and Countervailing Duties

      Recent major anti-dumping orders on Chinese goods include:

      • Graphite (Anode-grade): 93.5% AD + countervailing duties up to 721%

      • Solar cells from Southeast Asia: 8% to 125% (affecting Chinese companies operating in third countries)

      • Aluminum products: Variable rates by product type

      • Steel products: Country and product-specific rates

      De Minimis Elimination

      Effective May 2, 2025:

      • Low-value shipments (under $800): No longer exempt from duties

      • Application: Affects all B2C e-commerce shipments from China/Hong Kong

      Cumulative Impact Examples

      Typical Consumer Electronics (from China/HK):

      • Base HTS duty: 7.5%

      • Section 301 tariff: 25%

      • Reciprocal tariff: 30% (current temporary rate)

      • Total: Approximately 62.5%

      Electric Vehicles (from China/HK):

      • Base HTS duty: 2.5%

      • Section 301 tariff: 100%

      • Reciprocal tariff: 30%

      • Total: Approximately 132.5%

      Aluminum products with anti-dumping:

      • Base HTS duty: 3.1%

      • Section 232 aluminum tariff: 50%

      • Reciprocal tariff: 30%

      • Anti-dumping (if applicable): Up to 150%

      • Potential Total: Over 230%

      Compliance Requirements

      Manufacturer Identification Code (MID)

      • Format: Country code + manufacturer name + address digits + city (e.g., VNSUN1234HAN)

      • Requirement: Mandatory for all textile and FDA-regulated products via FedEx

      • Purpose: Verify true country of origin to avoid China tariff rates

      Documentation Standards

      • 10-digit HTS codes required for all shipments

      • Certificate of Origin must accurately reflect manufacturing location

      • Commercial invoices must include detailed product descriptions

      • Transshipment verification - goods shipped through Hong Kong but made elsewhere must prove non-Chinese origin

      For more information, check out the article titled "Understanding MID & HTS Codes for Seamless U.S. Customs Clearance".

      Strategic Business Implications

      Cost Structure Impact:

      • Total landed costs for China/HK goods can exceed 200-245% of FOB value when all duties apply

      • B2C shipments under $800 face minimum $100-200 duty per item regardless of value

      • Complex compliance requirements increase administrative costs

      Courier Suggestion:

      Switching to Spaceship Air’s Tax Inclusive Feature empowers businesses to drastically reduce customs risk, gain financial clarity, and strategically optimise US import tax exposure—especially amid ongoing regulatory volatility in 2025. 

      For lightweight shipments, refer to Spaceship Air Economy (Tax-Inclusive).  
      For shipments weighing 12kg or more, refer to Spaceship Air Heavy Goods (Tax-Inclusive).

      Current Exclusions and Reviews

      • Section 301 Exclusions: 164 products extended through August 31, 2025

      • Solar Manufacturing Equipment: 14 exclusions for specific machinery

      • Review Process: Ongoing for machinery in HTS Chapters 84 and 85


      Last Updated: 5 Sep 2025