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Frequently Asked Questions

Everything you need to know about tariff compliance for ecommerce.

Understanding the Changes

What changed with the de minimis exemption? +

As of June 2026, the U.S. federal government suspended the de minimis exemption for imports under $800. This means all packages entering the U.S., regardless of value, are now subject to tariffs and duties.

Previously, shipments valued under $800 could enter duty-free. Now, sellers must calculate and collect tariffs on every import, adding complexity to cross-border ecommerce operations.

How do I know if my products are affected? +

All ecommerce sellers importing goods into the U.S. are affected, whether you source from China, Vietnam, India, or anywhere else. The change applies to:

  • Direct-to-consumer dropshipping
  • Wholesale bulk imports
  • Private label products
  • Digital goods with physical components
  • Returns and exchanges

If your supply chain involves any international import, you need a tariff compliance plan.

What is the Harmonized Tariff Schedule? +

The Harmonized Tariff Schedule (HTS) is the official U.S. government classification system for imported goods. Each product is assigned a 6-10 digit code that determines its duty rate.

Duty rates range from 0% to 25%+ depending on product type and country of origin. Misclassification can result in penalties, so accurate coding is critical.

Calculating Costs

How is tariff duty calculated? +

Tariff duty is calculated as a percentage of the declared value of goods:

Duty = Declared Value × Duty Rate

For example, a shipment of textiles valued at $10,000 with a 16% duty rate incurs $1,600 in tariffs.

The declared value typically includes the cost of goods plus freight, insurance, and handling (landed cost). State-level sales tax may also apply.

Can I pass tariff costs to customers? +

Yes, you can - but timing and transparency matter. Most ecommerce sellers handle tariff costs in three ways:

  1. Mark up at purchase: Factor tariffs into your product price upfront (most common).
  2. Import duties at checkout: Pass tariff costs as a separate line item before payment.
  3. Absorb costs: Keep prices stable but reduce margin (less common with thin-margin products).

Be clear with customers about what they're paying. Hidden tariff fees lead to cart abandonment and chargebacks.

How do I estimate tariffs before importing? +

You'll need three pieces of information:

  1. Product classification: Find your HTS code on the official USITC website.
  2. Landed cost: Invoice price + shipping + insurance.
  3. Country of origin: Where goods are manufactured (not where shipped from).

Once you have these, multiply landed cost by the applicable duty rate. Tariff Compliance Automation does this lookup and calculation automatically, eliminating manual HTS research.

Compliance & Risk

What happens if I misclassify goods? +

Misclassification - whether intentional or accidental - carries serious consequences:

  • Duty underpayment: CBP (U.S. Customs and Border Protection) can assess additional duties plus penalties.
  • Civil penalties: Up to 20% of the undeclared duty amount.
  • Criminal penalties: Intentional fraud can result in fines up to $250,000 and imprisonment.
  • Shipment seizure: Goods can be held or detained during investigation.

Even small businesses are subject to these penalties. Accuracy is both a legal and financial imperative.

Do I need a licensed customs broker? +

It depends on your import volume and complexity. Most small ecommerce sellers don't require a broker for standard imports, but:

  • Recommended for: High-volume imports, regulated categories (food, pharma, apparel), or complex tariff situations.
  • Optional for: Low-volume, straightforward product imports from established suppliers.

Even if you don't hire a broker, you're responsible for accurate declarations. Using automated compliance tools reduces risk regardless of whether you use a broker.

How long does customs clearance take? +

Clearance times vary based on several factors:

  • Standard processing: 1-5 business days for routine imports.
  • Detailed examination: 5-15 days if CBP needs additional documentation or physical inspection.
  • Regulated goods: 2-4 weeks for items requiring agency approvals (food, apparel, electronics).

Accurate tariff classification and documentation speeds clearance. Incomplete or misclassified shipments sit in queue longer.

Using Tariff Compliance Automation

How does the automated lookup work? +

Our system eliminates manual HTS research by automating the entire classification process:

  1. You input your product description, materials, and country of origin.
  2. Our AI engine cross-references the official USITC database and recent tariff updates.
  3. We return the correct HTS code with the applicable duty rate.
  4. You see the calculated tariff cost immediately.

The process takes seconds instead of hours of manual research.

What if the system can't classify my product? +

Edge cases and new product categories sometimes fall outside standard classifications. When our system flags a product as ambiguous, we:

  1. Present the most likely HTS codes with duty ranges.
  2. Flag it for manual review (with CBP guidance).
  3. Provide audit trails for documentation.

For complex or novel products, we recommend consulting a licensed customs broker to finalize classification before large shipments.

How often are tariff rates updated? +

Tariff rates change regularly due to:

  • Section 301 updates: China-related tariffs change frequently.
  • Trade agreements: New agreements can alter rates for specific countries.
  • HTS revisions: The USITC updates the schedule annually and periodically.

Our system updates daily with the latest USITC data, so your calculations always reflect current rates. You'll be notified if rates change for products you frequently import.

Can I integrate this with my ecommerce platform? +

Yes. We offer integrations with major platforms:

  • Shopify (via app or API)
  • WooCommerce (plugin)
  • Custom platforms (REST API)
  • Inventory management systems (direct sync)

Once integrated, tariffs are calculated automatically at import, so you can pass accurate costs to customers in real-time without manual calculation.

Compliance & Support

What documentation does the system generate? +

For each import, we create audit-ready documentation:

  • Classification analysis (HTS code + reasoning)
  • Duty calculation worksheets
  • Country of origin verification
  • Tariff rate sources and effective dates
  • Compliance checkpoints

This documentation protects you if CBP requests a classification review. It demonstrates good-faith compliance and accurate record-keeping.

Do you offer compliance consulting? +

Yes. Beyond automation, we provide:

  • Classification reviews: Expert review of high-risk categories.
  • Tariff strategy: Advice on sourcing decisions and duty minimization (within legal limits).
  • CBP audit prep: Documentation and process review if you're ever audited.
  • Onboarding: Personalized setup for your product catalog.

Contact our team for a custom consulting package.

What is your pricing model? +

We offer three tiers:

  • Starter ($99/month): Up to 100 product lookups/month, basic integrations.
  • Growth ($299/month): Unlimited lookups, platform integrations, priority support.
  • Enterprise (custom): Consulting, audit support, API access, SLA guarantees.

Most ecommerce sellers start on Growth. See our pricing page for a full feature comparison.