For those in the US planning to purchase a radio from China, you might want to do it sooner rather than later.
Currently there are no tariffs for overseas packages from China valued under $800. That “de minimus” exception ends May 1, 2015. In May the item will be taxed at $75 per item or 90% of its value, whichever is less. After June 1 the tariff is simply $150 per item (per item, not per package).
If you bought 3 radios priced at $40 each, totaling $120, here’s how the tariff would work May 1:
- Tariff Calculation: Since the de minimis exemption ends on May 1, 2025, the tariff would apply. Each radio would be taxed at 90% of its value or $75, whichever is lower. For a $40 radio, 90% of its value is $36, which is less than $75. Therefore, the tariff for each radio would be $36. For 3 radios, the total tariff would be $108.
- Collection Process: The tariff is typically collected by the shipping carrier or customs broker. When your package arrives in the U.S., customs will assess the tariff, and the carrier will notify you of the amount due. You would need to pay the tariff before the package is delivered to you.
After June 1, it’s just $150 per item, so the three radios would have a $450 tariff.
Note: tariffs are imposed based on the country of origin, not the country of shipment, and they are taxed on the day the arrive in the US, not the date of order or shipment.
For further information see:
AMENDMENT TO RECIPROCAL TARIFFS AND UPDATED DUTIES AS APPLIED TO LOW-VALUE IMPORTS FROM THE PEOPLE’S REPUBLIC OF CHINA
Subject to change without notice.