Getting parts imported from China for the first time can be a little daunting, especially when you are hearing terms you’ve never heard before. You’ll probably not know what costs to expect unless someone either tells you or you’ve been done it before.
If you are a new importer, it all may seem a little confusing, but in this article, we will shed light on the import costs you can expect.
– Import Fees to Know –
U.S. Customs Duty
The U.S. requires that duties are paid on all imported products. A duty or tariff is a tax on an imported goods.
When you are importing a product, the . The duty rates change per product class and there are thousands of classes. Some products have exemptions from tariffs. Your customs broker can help you look up the exact duty on your product. Duties and Tariffs on products imported from China have been changing over time, so be sure to check them periodically.
Also known as Ocean Freight fees, DCC, or Destination and Delivery Charge fees are the fees charged by the carrier for handling the shipment or container. The rates can vary and are based upon the weight and volume of the shipment. A general amount to work off of is $30.00 per cubic meter.
This is the shipping agents cost to transfer the handling of the shipment to your broker. Most of the time the prices can run from $50.00-$100.00.
Bonds are required by law to back up payment of your duty with U.S. Customs. Normally your broker will pay the bond fee and then invoice you. Bond fees may vary from broker to broker as some will add a little to the cost, so it doesn’t hurt to compare prices. In general the minimum bond fee is around $80.00; added to that is a cost of about $4.00 per thousand dollars of invoice value. If you plan on importing often you can apply for an annual bond where you pay a onetime fee for all shipments you import in a year. They can be purchased through your broker.
ISF Entry Fee
Before a shipment leaves port, Importer Security Filing data must be processed with U.S. customs. There is normally a fee to process this data.
It’s extremely that the ISF entry is filed 24 hours before the shipment leaves China or there is a risk of a $5,000.00 penalty.
You can expect to see additional port fees depending on the port. Your customs broker will be able to tell you what costs you can expect. Some of these include things like forklift fees, which would be the cost to unload the shipment.
There is also the customs broker’s fees for their services, and inland freight from the port of entry to your door.
You should be able to avoid “hidden” fees by asking your customs broker for a quote on what it would take to import a shipment.
We’d be happy to refer you to the customs broker we work with if you need help with import costs.
If you need help with sourcing from China, feel free to contact us.