US duty on Chinese goods stacks in layers. Your base HTS rate is only the first one.
Furniture, building materials and auto parts sit on Section 301 List 3 at 25%. Consumer goods on List 4A are at 7.5%. A 12.5% forced-labour duty took effect on 24 July 2026, on top of everything else. Strategic categories run far higher — EVs at 100%, semiconductors and solar at 50%.
DDP includes duty, which means whoever quotes it is carrying rate-change risk. Ask how long the quote is locked. All rates verified August 2026. The July stack in more detail: is Section 301 included in your DDP price? What else an oversized quote covers: oversized DDP from China — what’s included, what’s billed later.
How US import duty actually stacks
Most importers think of “the tariff” as one number. It isn’t. For Chinese goods it’s a stack, and each layer is calculated on the customs value and added to the others.
| Layer | What it is | Typical range |
|---|---|---|
| Base MFN duty | The standard HTS rate, same for most countries | 0%–15% |
| Section 301 | China-specific, by product list | 7.5%–100% |
| Forced-labour duty | Added 24 July 2026, broad application | 12.5% |
| Section 232 | Steel, aluminium and derivatives | Varies |
| AD/CVD | Anti-dumping and countervailing, case by case | Varies, can be very high |
These add together. A product with a 3% base rate on List 3 doesn’t pay 25% — it pays 3% + 25% + 12.5%, and more if Section 232 or AD/CVD apply.
Rates verified August 2026.
Where the categories sit
Section 301 has four lists, set in 2018–2020 and modified since. These are the original China lists. They did not go away in July.
| List | Covers | Rate |
|---|---|---|
| List 1 | Industrial machinery, electronics, aerospace | 25% |
| List 2 | Semiconductors, plastics, chemicals | 25% |
| List 3 | Furniture, auto parts, building materials | 25% |
| List 4A | Consumer goods, apparel, footwear | 7.5% |
List 3 is the one that matters most for oversized cargo. Furniture and building materials — two of the largest oversized categories — both sit there at 25%.
Strategic sectors run much higher following the 2024 review: electric vehicles at 100%, semiconductors and solar cells at 50%, batteries and steel and aluminium at 25%.
The layer added in July 2026
On 24 July 2026, a new Section 301 duty of 12.5% took effect on Chinese-origin goods, as a remedy in a forced-labour investigation. China sits in the 12.5% tier. It replaced a temporary 10% measure that had itself replaced tariffs struck down in court earlier in the year. The original lists were not replaced. The new layer stacks on top of them.
What this means practically:
- It applies broadly across product categories rather than by list
- It stacks on top of existing Section 301 rates — a List 3 product moves from 25% to 37.5% in Section 301 terms alone
- Goods already subject to Section 232 tariffs are exempted
For a furniture importer, the full stack now commonly lands in the 40% to 45% range once base duty is included. On a $30,000 container that’s $12,000 to $13,500 in duty — routinely more than the freight.
Verified August 2026. Litigation and policy changes have moved this repeatedly; confirm before quoting. How the July events sit together — the expired 10% surcharge and the new forced-labour action in the same minute: is Section 301 included in your DDP price?
Classification: where the real money is
Your HTS code determines your base rate, which Section 301 list you’re on, and whether an exclusion applies. Getting it wrong is expensive in both directions.
The mistakes we see most:
- Classifying by what it looks like instead of what it’s made of. Furniture codes split by material — wood, metal, plastic — and by intended room. A metal-framed dining chair with a wooden seat is a genuine question, not an obvious answer.
- Using the supplier’s code without checking. Chinese export codes and US import codes are harmonised at six digits, not ten. The last four digits are where US rates are set, and your supplier has no reason to have got them right.
- Missing an exclusion. USTR maintains product-specific exclusions from Section 301 — around 178 currently run to 10 November 2026. If your product is on that list and you’re not claiming it, you’re paying a tariff you don’t owe.
- Declaring too broadly. “Furniture” invites both a customs examination and a worse classification outcome than “wooden bedroom cabinet, MDF with oak veneer.”
What to do about it: for any product you’ll ship repeatedly, have a customs broker review the classification once, properly. It’s a small one-time cost against a rate that applies to every container you’ll ever ship. And if you’re near a boundary between codes, that review can pay for itself on the first shipment.
Who legally owes the duty on a DDP shipment
This is worth being precise about, because DDP creates a common misunderstanding.
DDP means the seller pays the duty. It does not mean the seller becomes the importer of record.
The importer of record is the party legally responsible to US customs for the accuracy of the entry — and that responsibility doesn’t transfer just because someone else paid the bill. If the declaration is wrong, customs pursues the importer of record, not whoever wrote the cheque.
We cover this in full in what DDP actually covers, and who is legally responsible. If you’re importing on DDP terms and you don’t currently know who is named as importer of record on your entries, find out this week. It’s the single most consequential thing most importers don’t know about their own shipments.
How a DDP quote handles duty, and what happens when rates move
When a forwarder quotes DDP, they’re quoting a duty figure based on today’s rates and a classification. Two things can then change: the rate, or the classification.
Questions worth asking before you accept any DDP quote:
- What HTS code did you quote on? If they can’t tell you, they guessed.
- What duty rate is built into this number? You should be able to see the layers.
- How long is that rate locked — until booking, until sailing, until arrival?
- If rates change between booking and arrival, who absorbs it?
- What happens if customs reclassifies the goods?
There’s no universally correct answer to who absorbs a rate move, but there is a correct answer for your contract, and it should be written down. Reclassification means a different rate applied retroactively to that entry.
Our position: we quote the duty layers separately from the freight so you can see what you’re paying for. If rates move between booking and arrival, we show you the change rather than absorbing it silently into a revised invoice. Silent absorption sounds generous until the direction reverses.
Reducing what you pay, legitimately
Four approaches that are legal, ordinary, and underused.
- Get the classification right. The most common source of overpayment. A proper broker review once per product.
- Check the exclusion lists. Currently around 178 product exclusions are in force, running to 10 November 2026. Check whether yours is among them, and re-check when the list is renewed.
- First sale valuation. In multi-tier transactions, duty may be assessable on the first sale price rather than the final one. Complex, requires documentation, and worth advice — but on high-volume programmes the savings are substantial.
- Tariff engineering. Changing the product so it legitimately falls under a different code — a different material, a different stage of assembly. This has to be a genuine change to the goods, not a paperwork exercise. Done properly it’s ordinary commercial practice.
What is not legitimate: undervaluing the goods, misdeclaring the country of origin, or splitting shipments to stay under thresholds. These are fraud, the penalties are severe and personal, and we won’t file entries on that basis.
Find another forwarder.
Watch these dates
| Date | What happens |
|---|---|
| 10 November 2026 | Current Section 301 exclusions expire unless extended |
| Ongoing | A second Section 301 investigation into excess capacity remains open |
| Ongoing | Litigation over several tariff measures continues; outcomes could trigger refunds |
A practical note on the litigation: importers who file protective protests preserve the ability to claim refunds if courts later rule against a tariff measure. If you’re importing at volume, this is worth discussing with your broker. It costs little and the option has real value.
Common questions
What tariff applies to furniture imported from China?
Furniture sits on Section 301 List 3 at 25%, plus your base HTS duty and the 12.5% forced-labour duty added in July 2026. The full stack commonly lands around 40% to 45%. Verify current rates against your own HTS before building a cost model.
Is duty included in a DDP quote?
Yes. DDP includes duty and tariffs. Ask how long the quoted rate is locked and who absorbs a rate change between booking and arrival.
Does DDP mean my supplier is the importer of record?
No. DDP determines who pays. The importer of record is who’s legally responsible for the accuracy of the entry, and that’s a separate question with real consequences.
How do Section 301 tariffs stack with other duties?
They add. Base MFN duty plus Section 301 plus the forced-labour duty, plus Section 232 or AD/CVD where those apply. Each is calculated on the customs value. The July 2026 layer did not replace the original China lists.
Can I get an exclusion from Section 301 tariffs?
USTR maintains a list of product-specific exclusions — currently around 178, running to 10 November 2026. Check whether your product is covered; many importers pay tariffs they’re exempt from.
What happens if customs reclassifies my product?
A different rate applies to that entry, retroactively, plus potential penalties if the original declaration was careless. This is why a proper classification review is worth doing once.
Can I reduce my duty legally?
Yes — correct classification, exclusion claims, first sale valuation, and genuine tariff engineering are all legitimate. Undervaluation and origin misdeclaration are not, and the penalties are severe.
Want to know your real landed cost?
Send us your product description and HTS code if you have one. We’ll break out the duty layers alongside the freight so you can see the whole number before you commit. Free, no obligation. Mon–Sat, 08:00–22:00 China time (GMT+8).
Tariff rates verified August 2026. Subject to USTR/USITC updates, exclusions, and litigation. Confirm against your HTS with a licensed broker. This is general information, not legal advice. This page should be re-checked quarterly.