Import duties & HS codes: how to find your duty rate

Your HS code (Harmonized System) decides your duty rate — the wrong code means the wrong rate, and a wrong margin. Duty is customs value × the code's rate (customs value is CIF in the EU, FOB in the US). To find it, start from the 6-digit international HS code, then drill down to the national extension — 10-digit TARIC in the EU, 10-digit HTS in the US — in the official lookup tool of the importing country. Here's the method and the links.

What an HS code is (and why it drives everything)

The Harmonized System (HS code) is a customs nomenclature created by the World Customs Organization in 1988 and used by more than 200 countries. Its first six digits are identical worldwide — that's the international backbone. Each country or bloc then adds its own digits to refine the classification and set the exact rate.

• 6 digits (HS): the international level, shared by every signatory country (trade.gov).
• 10 digits (TARIC) in the European Union: the HS-6 + 2 Combined Nomenclature digits + 2 TARIC digits for EU-specific measures (vatit).
• 10 digits (HTS) in the United States: the HS-6 + 4 national digits (the Harmonized Tariff Schedule), administered by the USITC.

In other words: HS-6 gets you to the right product family, but the national extension carries the actual duty rate that applies in your country.

The customs vocabulary in one line

• Customs value: the base the rate is applied to. In the EU it's CIF; in the US it's the FOB transaction value.
• FOB (Free On Board): goods loaded on the vessel at the Chinese port. CIF (Cost, Insurance and Freight): FOB + ocean freight + insurance to the destination port.
• Import VAT: an indirect tax collected on entry into the EU (in the US, there is no federal VAT at the border).

The formula: duty = customs value × rate

The duty calculation itself is simple. What changes everything is the base:

Customs duty = Customs value × HS-code rate

  EU / France : customs value = CIF (FOB + freight + insurance)
  United States : customs value = FOB (freight declared separately is excluded)

In the EU, duty is charged on CIF, then import VAT (20% in France) is calculated on CIF + duty — so you pay VAT on the duty itself (trade-cost.com). For a VAT-registered business this VAT is recoverable (reverse-charged on the return), so it's a cash-flow cost, not a margin cost.

In the US the base is the FOB transaction value, which is lower — but the rates on Chinese goods are far higher (see below). That's why you never compare two countries on the headline rate alone: the base differs. Our landed-cost calculator applies the correct base country by country.

Table: where and how to find your rate

Note: TARIC does not contain national VAT — it gives duties and trade measures, but for the VAT rate you check the country's tax authority.

Method: find the right code in 4 steps

1. Describe the product by material and function

Customs classifies first by what it is (material, function, degree of processing), not by marketing use. A "LED desk lamp" sits under luminaires (chapter 94), not electronics. Note the primary material, the function, and the state (finished / in parts).

2. Drill the HS-6 down in the importing country's tool

Open the official tool — TARIC for the EU, HTS Search for the US — and walk chapter → heading → subheading down to 10 digits. Read the section and chapter notes: they settle most borderline cases.

3. Read the rate for "China" origin

In TARIC via Access2Markets, select the origin (China): you get the third-country (erga omnes) duty plus any measures (anti-dumping, quotas). In the US the HTS shows the general rate; add the China-specific surcharges on top.

4. When in doubt, get an official classification

If the code is ambiguous, don't guess: request a Binding Tariff Information (BTI) in the EU, or check/request a ruling through CROSS/CBP in the US. It's legally binding and protects you in an audit. A wrong code means a retroactive assessment — not just a rate that's "a bit off."

EU vs United States: the surcharges that move the bill

For the same Chinese product, the duty gap between the two regions comes mostly from China-specific measures on the US side.

European Union

EU third-country rates typically run from 0% to ~17% depending on the family: electronics often 0%, luminaires ~3–4%, textiles / footwear / tableware higher. The heavy line remains the 20% VAT (recoverable for a registered business). Since 1 July 2026, the sub-€150 low-value exemption has ended, replaced transitionally by a flat few-euro duty per parcel (Bird & Bird).

United States

On top of the base MFN duty (often 0–10%), Chinese goods carry Section 301 duties (generally 7.5% to 25% depending on the list, up to 100% on certain strategic goods like EVs) (Customs Broker USA). The sub-$800 de minimis exemption was removed for China on 2 May 2025: every Chinese shipment, whatever its value, now clears at full duty (TariffsTool). The US tariff landscape moved a lot through 2026 (surcharges created, challenged, replaced): always check the rate in force for your code at the moment you order (2026 China Tariff Update).

Rates change — often. Anti-dumping, Section 301, quotas, threshold reforms: a rate you read six months ago may now be wrong. Take the rate as of the order date, from the official tool, for your exact code and China origin. That's the only reliable number.

Chain it: code → duty → landed cost

Finding the code is only one step: the duty then feeds into the landed cost (freight allocated by CBM, insurance, VAT, clearance, bank fees). It's that total — not the factory price — that tells you whether a product is profitable; see how to calculate landed cost from China and the China import costs guide. Best practice: record the HS code and its rate once per product, then reapply them on every order.

FAQ

What is an HS code, exactly?

It's the international Harmonized System customs nomenclature. The first six digits are universal (the same in 200+ countries) and identify the product family. Each region then adds its own digits — 10 in total in both the EU (TARIC) and the US (HTS) — and that national extension sets the duty rate that applies to you.

Are duties calculated on the FOB or CIF price?

In the European Union, on the CIF value: goods + freight + insurance to the destination port. In the United States, on the FOB transaction value (ocean freight declared separately is excluded). The rate itself depends on your HS code. EU import VAT is then calculated on CIF + duty.

How do I find the exact rate for China?

Open the importing country's official tool — TARIC / Access2Markets for the EU, HTS Search for the US — drill to 10 digits, then select China as the origin. You'll see the third-country duty plus any measures (anti-dumping, Section 301). When in doubt, request a binding classification (BTI in the EU, a CBP ruling in the US).

What's the risk of using the wrong HS code?

The wrong rate applied, so duty under- or over-paid, and above all a retroactive assessment with penalties in an audit, sometimes over several years. Conversely, an over-cautious code makes you overpay. That's why a binding official classification is worth it when the product is ambiguous.

Is import VAT a real cost?

For a VAT-registered EU business, no: it's recoverable (reverse-charged on the VAT return), so it's a cash-flow item, not a margin cost. For an individual or non-registered entity, yes — it's a real +20% (in France) to build into landed cost. In the United States there is no federal VAT at the border at all.

At a trade show you note an FOB price in ten seconds; the duty rate is decided back at the desk. Fairloop keeps the HS code and its rate per product, then computes the landed cost of your container order — so you decide on the right number, not on the factory price. See pricing.

Read also: the China import costs guide.