A practical guide for online sellers who source products internationally.
If you sell physical products on Amazon, Shopify, eBay, or any online platform, and those products are manufactured outside the United States, you are an importer. That means you are legally responsible for paying customs duties, and those duties directly affect your profit margins.
Too many eCommerce sellers calculate their product cost as “supplier price + shipping” and call it done. They then discover, often after hundreds of units are already in transit, that duties, fees, and tariffs add 15–40% to their actual cost. This guide walks you through every step of calculating your true import cost.
Every product imported into the U.S. must be classified under the Harmonized Tariff Schedule (HTS). This 8–10 digit code determines your duty rate. Getting it right is critical — the wrong code can mean overpaying by thousands or underpaying and facing CBP penalties.
Three ways to find your HTS code:
Once you have your HTS code, look up the General (MFN) duty rate in the tariff schedule. This is the baseline rate that applies to imports from most countries. Rates vary widely:
| Product Category | Example HTS | MFN Rate |
|---|---|---|
| Bluetooth speakers | 8518.40 | 3.9% |
| Cotton t-shirts | 6109.10 | 16.5% |
| Stainless steel water bottles | 7323.93 | 2% |
| Plastic phone cases | 3926.90 | 5.3% |
| Yoga mats (rubber) | 4016.99 | 2.5% |
The MFN rate is just the starting point. Depending on your product’s country of origin, additional tariff layers may apply:
Most goods from China face an additional 25% tariff under Section 301. Some product categories (like certain electronics) have different rates. These tariffs have been in effect since 2018 and show no signs of being removed.
Steel products face a 25% tariff and aluminum products face a 10% tariff under Section 232, regardless of country of origin (with some exceptions for USMCA partners).
The International Emergency Economic Powers Act has been used to impose additional tariffs on specific countries. These can change with executive orders, making it essential to check current rates before shipping.
Example: Plastic phone case from China
MFN rate: 5.3% + Section 301: 25% = 30.3% effective duty rate
On top of duties, every formal entry (over $2,500) is charged:
These are not duties — they are CBP processing fees that apply even to duty-free products. See our complete guide to MPF and HMF for details.
Your actual cost per unit is the landed cost, not the supplier price. Here is a formula for eCommerce pricing:
Minimum selling price = Landed cost per unit + domestic shipping + platform fees + desired profit margin
For Amazon FBA sellers, platform fees include referral fees (8–15%), FBA fulfillment fees, and storage fees. For Shopify sellers, factor in payment processing (2.9% + 30¢) and shipping costs.
If your products originate in Canada or Mexico, they may qualify for duty-free treatment under the United States-Mexico-Canada Agreement (USMCA), provided they meet the rules of origin requirements. Other FTAs exist with countries like South Korea, Australia, Colombia, and Israel. However, you must verify that your specific product qualifies — origin rules vary by product category.
Under Section 321, shipments valued at $800 or less per person per day can enter the U.S. duty-free without formal entry. This is commonly used for direct-to-consumer shipments from overseas (e.g., AliExpress orders). However, the de minimis threshold does not apply to goods subject to anti-dumping or countervailing duties, and there are ongoing legislative efforts to lower or eliminate this threshold for imports from certain countries.
Manually looking up HS codes, checking tariff layers, and adding fees for every product is time-consuming and error-prone. The LandedCost calculator handles the entire process: enter your product description and country of origin, and get an instant breakdown of every cost component — including all tariff layers, MPF, and HMF.
Calculate Your Import Duties FreeYes. If you import products from outside the U.S. to sell on Amazon FBA, you are the importer of record and are responsible for all customs duties, MPF, and HMF.
You can search the USITC Harmonized Tariff Schedule database, ask your customs broker, or use an AI-powered classification tool like LandedCost that determines the HS code from a product description.
The Section 321 de minimis threshold is $800 per shipment per person per day. Shipments under this value generally enter duty-free and without formal entry requirements.
Chinese imports can face the MFN base duty rate plus Section 301 tariffs (up to 25%), Section 232 tariffs on steel and aluminum, and IEEPA tariffs. These stack additively, so a product with a 5% MFN rate could face 30%+ effective duty.