Importing Goods from China: Key Regulations, Tariffs, Compliance Requirements, and Financial Implications

China remains one of the United States’ largest trading partners, and for many companies, Chinese suppliers are a critical part of global production and sourcing strategies. However, importing goods from China requires careful attention to tariff classifications, customs compliance, supply chain documentation, and financial planning. U.S. tariff policies—including Section 301 duties on Chinese-origin goods and Section 232 measures on metal-containing products—have significantly increased the cost and complexity of U.S–China trade.

For importers, accounting teams, and compliance departments, understanding the legal framework and practical requirements is essential for accurate cost modeling and regulatory compliance.

1. Tariff Framework Affecting Imports from China

Imports from China are subject to several layers of duties, depending on the product category, classification, and origin documentation.

Section 301 Tariffs on Chinese-Origin Goods

Section 301 tariffs, administered by the Office of the United States Trade Representative (USTR), apply to thousands of goods from China. These additional tariffs range from 7.5% to 25% and cover a substantial portion of China’s exports to the United States.

Official source: USTR Section 301 Tariffs

These tariffs apply based on:

• the HTSUS classification of the product
• whether the product appears on List 1, 2, 3, or 4A
• the country of origin, not the country of export

Section 232 Tariffs for Steel, Aluminum, and Derivative Products

Products containing steel or aluminum may also be subject to Section 232 tariffs, even if the finished item is manufactured in China.

Key official sources: Federal Register Notices on Section 232 and BIS Section 232 Resource Page.

Tariffs under Section 232 currently reach up to 50% for some metal-containing goods. These developments are described in more detail in the related analysis of U.S. tariff changes: US Tariffs 2025: Overview of New Rates, Legal Framework, and Official Publications.

General U.S. Tariffs Under the HTSUS

Basic duty rates apply in addition to Section 301 or 232 tariffs. Importers must consult the Harmonized Tariff Schedule of the United States for:

• ordinary customs duties
• special tariff treatment
• eligibility for exclusions or trade programs

HTSUS schedule: Harmonized Tariff Schedule

2. Documentation Requirements When Importing from China

Accurate documentation is essential for avoiding delays, penalties, or unexpected duty increases.

Key commercial documents include:

• Commercial invoice
• Packing list
• Bill of lading or airway bill
• Country-of-origin documentation
• Certificates of metal content (for products affected by Section 232)
• Certificates of manufacture or supplier declarations

Country of Origin Rules

Country of origin is not defined by where a product ships from but by where it undergoes its last substantial transformation.

CBP guidance: CBP Importing Guidance

3. Classification and Compliance Requirements

Incorrect product classification is one of the most common compliance failures in U.S. imports from China. Classification determines:

• standard duty rate
• Section 301 applicability
• Section 232 applicability
• eligibility for exclusions
• statistical reporting requirements

Correct classification requires product specifications, component breakdowns, samples or technical sheets (if requested), and close supplier cooperation. U.S. Customs and Border Protection frequently audits classification accuracy and may request supporting documentation.

4. Common Risks in Importing from China

Non-Compliance with Tariff Measures

Failure to correctly apply Section 301 or Section 232 duties can result in retroactive assessments and penalties.

Insufficient Documentation

Missing or inaccurate country-of-origin or composition documents may trigger customs holds or additional scrutiny.

Supply Chain Transparency

Complex Chinese supply chains may obscure true origin or material sourcing, creating compliance risk and potential liability.

Unexpected Financial Exposure

Tariff increases or expired exclusions can materially affect cost of goods sold (COGS) and margin calculations if not properly anticipated.

5. Financial Considerations for Accounting Teams

Cost Modeling

Importers must factor in:

• base HTSUS duties
• Section 301 duties
• Section 232 duties
• port fees
• customs brokerage charges
• inland transportation costs
• foreign exchange considerations

Budgeting and Forecasting

Tariff changes—especially Section 301 revisions—can occur on short notice. Companies should build scenarios for:

• tariff rate increases
• exclusion renewals or expirations
• reclassification risks

Landed Cost Calculation

Accurate landed cost analysis is essential for pricing decisions, contract negotiations, and profitability assessments.

Internal Controls

Accounting and compliance teams should coordinate to ensure:

• accurate HTSUS classification
• proper duty calculation
• documentation for audits
• regular reconciliation of customs entries

6. Operational Strategies for Managing Import Costs

Companies importing from China often implement the following strategies:

• Diversifying suppliers to reduce tariff exposure
• Reassessing product design to reduce metal content
• Adjusting Incoterms to shift cost responsibilities
• Evaluating tariff engineering where legally permissible
• Monitoring exclusion opportunities through USTR

7. Where to Monitor Official Updates

Companies should monitor the following authoritative sources:

• Federal Register – notices, updates, amendments
• USTR – Section 301 tariff lists and exclusion notices
• Bureau of Industry and Security – Section 232 guidance
• U.S. Customs and Border Protection – compliance and operational rules

Conclusion

Importing goods from China remains essential for many businesses, but the tariff environment has become significantly more complex due to Section 301 and Section 232 measures. Successful import strategies require accurate classification, reliable documentation, strong internal controls, and ongoing monitoring of official regulatory updates. For accounting and finance teams, understanding the financial and compliance implications of these tariffs is critical for effective cost management, forecasting, and risk mitigation.