When a shipment crosses a border, the destination country can charge money before releasing it. In the United States, these charges are collected by U.S. Customs and Border Protection (CBP). For anyone importing furniture, equipment or commercial goods for the first time, the invoice that follows can be confusing. This guide explains what each charge is, how it is calculated, and what you can check before you pay.
Who pays import duties?
In most shipments, the importer of record pays: the person or company receiving the goods in the United States. A seller abroad may agree to pay duties for you (this is called Delivered Duty Paid, or DDP), but unless that has been agreed in writing, expect the charges to fall on the recipient.
Because customs will not release goods until the charges are settled, logistics providers often pay customs on the importer's behalf to keep the shipment moving, then invoice the importer before final delivery. That is how KDX works: we pay customs, then send an itemized invoice that you can pay online.
The main charges, line by line
1. Import duty
Import duty is a tax on the goods themselves. For most products it is an ad valorem rate: a percentage of the customs value. Some products are charged per unit or per kilogram instead, and many are duty-free.
The rate depends on two things:
- Tariff classification. Every product falls under a code in the Harmonized Tariff Schedule of the United States (HTS). The code sets the base duty rate. See our guide on HTS codes.
- Country of origin. Where the goods were made, not where they were shipped from. Trade agreements can reduce the rate, and additional tariffs can apply to goods from certain countries.
Additional tariffs on top of the base rate have changed frequently in recent years. The rate that applies is the one in force on the date the goods are entered, so a quote from a few months ago may no longer be accurate.
2. Merchandise Processing Fee (MPF)
CBP charges a processing fee on most formal entries. It is a small percentage of the value of the goods, with a minimum and a maximum per entry that CBP adjusts every fiscal year. Informal entries (lower-value shipments) pay a smaller flat fee instead.
3. Harbor Maintenance Fee (HMF)
Goods arriving by sea at a U.S. port are also charged the Harbor Maintenance Fee, equal to 0.125% of the value of the cargo. It does not apply to air freight or to goods arriving by land.
4. Other taxes
Some products carry federal excise taxes (alcohol and tobacco, for example). Some states also expect sales or use tax on goods brought into the state. These depend on the product and the destination.
5. Clearance and handling fees
Preparing and filing the customs entry is work done by a customs broker or a logistics provider, who charges a fee for it. This fee is not a government charge, so it should always appear on its own line, separate from duties and taxes. Our Refunds & Disputes policy explains how it is treated if something goes wrong.
How the customs value is determined
For most imports, the customs value is the transaction value: the price actually paid or payable for the goods, as shown on the commercial invoice. Certain costs are added (such as packing costs or commissions paid by the buyer), and international freight and insurance are generally excluded for U.S. purposes when they are shown separately.
Under-declaring the value to reduce duties is customs fraud. It can lead to penalties, seizure of the goods and delays far more expensive than the duty saved.
A worked example
Suppose a business imports an industrial mixer valued at $2,400, classified under a heading with a 4% duty rate, arriving by sea:
- Import duty: 4% of $2,400 = $96.00
- Harbor Maintenance Fee: 0.125% of $2,400 = $3.00
- Merchandise Processing Fee: subject to the minimum in force that year
- Clearance fee charged by the broker or carrier
The figures are illustrative. Your actual charges depend on the classification, origin and rates in force on the day of entry.
What to check before paying
- The tracking number and description match your shipment. If you do not recognize the shipment, do not pay: contact the carrier through its official website.
- The declared value is right. Duty is calculated on it. A wrong value means a wrong duty.
- Each charge is listed separately. Duty, government fees, taxes and the provider's own fee should never be lumped together.
- The payment page is on the carrier's own domain. Fake "customs fee" text messages are a common scam. Legitimate carriers send you to their own website.
If an amount looks wrong, contact the carrier before paying. If customs assessed the shipment incorrectly, a correction can be requested and any overpayment refunded.
Can you avoid paying duties?
Not legally, if they are owed. You can, however, avoid paying more than necessary: classify goods correctly, declare the right country of origin, keep proof of origin when a trade agreement applies, and make sure the commercial invoice is complete. Low-value exemptions that used to cover small parcels have been suspended or narrowed, so they rarely apply to freight shipments.
Frequently asked questions
Why didn't the seller tell me about duties?
Many sellers ship on Delivered At Place (DAP) terms, which means the buyer handles import charges. Check the sales terms: if they say DAP, duties are yours; if they say DDP, the seller should pay.
What happens if I don't pay?
The shipment is held. After the holding period, storage fees start, and unclaimed goods may be returned or abandoned. Our Shipping Policy sets out the timeline for shipments carried by KDX.
Are duties refundable if I return the goods?
Sometimes. Duty drawback rules allow refunds in specific cases, mostly for businesses that re-export goods. For a one-off refused shipment, ask before customs clearance: once duties are paid to customs, refunds go through customs procedures.
This guide is general information, not legal or customs advice. Rules and rates change; check the current requirements for your shipment.
