Custom Duties when Shipping from China: How to Pay

Posted by David Ribo on September 4th, 2018

Calculating tariffs is always an issue when shipping from China. Generally, tariffs are calculated by looking up the custom duty rate and the HS code of the US. However, the final tariffs paid, can only be determined by the tax bill.

Paying Import Duty for Sea Freight and Air Freight
Import duties are either paid to suppliers, the freight forwarders or to the customs authorities. It all depends on the method of shipping from China to Amazon FBA warehouse .
 
In rare cases, some people prefer to have their suppliers ship their goods directly to the FBA houses, eliminating the use of any kind of middle men. In such cases, the seller would have to pay the customs duty to your suppliers because it is they who would pay the freight forwarder.  Most suppliers however, would not accept to offer these services as they do not possess the resources for shipping to the U.S.

When a buyer decides to employ the services of a freight forwarder who would help ship goods directly from China to Amazon FBA, the buyer would have to transfer the import duties to the freight forwarder. Most seasoned importers have trusted freight forwarders who they do regular business with . Otherwise an importer could also ask their Chinese supplier to help find a reliable sea freight or air freight forwarder who offers shipping service to the USA.  It is better to leave the entire process of customs clearance to the freight forwarders as this might prove to be a technical process and a bit complicated for the seller to handle himself.

Lastly, where a seller decides not to use the services of a freight forwarder, the seller would have to pay the import duties themselves.  In this case, when the goods get to the port, the customs officials would issue a bill requiring the seller to make a direct payment to their bank account.  

How to Pay Import Duty for Express Shipping
When using express shipping as a method of import from China to Amazon FBA, the Chinese supplies, on your request, could provide you with contacts from the FedEx or UPS branch office in China. If the seller does not want to go through this   route, they could source for contacts from companies offering express services who always have the benefit of being charged lower express fees from different international express companies. When you receive quotes from the companies, you can then choose the most affordable. These express companies, such as UPS, will send the duty bill to the Chinese supplier and they will foot the bills. The Express company will sort out the entire issues.

With the above, the only expenses due to the seller would be the cost of delivery to their Chinese supplier . If your shipment has the total value at 0 or less, there are no applicable tariffs as shipments prized below 0 are exempt from the tariff. But if your consignment is prized greater than 0, you may have to pay a little tariff.