Duty starts with entered value, usually the transaction value, multiplied by the HTS rate for the classification. Then the extras stack on top: Section 301, Section 232, and antidumping and countervailing duties all add to the same entry. Get one layer wrong and the whole bill is wrong.
Entered value comes first, and it is not the invoice price
The base of the calculation is entered value, and for most entries that means transaction value: the price actually paid or payable for the goods. But the number on the commercial invoice is only the starting point. Assists, royalties, and certain commissions can be added, and the value CBP accepts is the one supported by your records, not the one on the cheapest document in the file.
This is where importers lose money quietly. A supplier provides free tooling, and the value of that tooling is an assist that belongs in the entered value. A royalty tied to the imported goods belongs there too. Leave them out and the entry understates value, which is exactly the kind of error that shows up in an audit years later with penalties attached.
The HTS rate is the base layer
Once the value is set, the Harmonized Tariff Schedule rate applies. The 10-digit HTS code decides the duty rate, and a single digit in the wrong place can move the rate by several points. Classification disputes are the most common reason entries get re-rated, and they are also the most avoidable: the classification should be settled before the goods ship, not argued after they land.
Binding rulings are the tool for this. A CBP ruling on your exact product gives you a classification you can rely on, and it is far cheaper than a reclassification at liquidation. If your product sits anywhere near a gray area in the tariff schedule, get the ruling first.
The stack: 301, 232, and AD/CVD on top
Here is the part that surprises new importers. The HTS rate is only the base layer. Section 301 duties, Section 232 duties, and antidumping and countervailing duties stack on top of it, all calculated on the same entered value. A product with a 3 percent MFN rate, a 25 percent Section 301 duty, and a 20 percent antidumping duty carries a 48 percent total burden, not 25 percent.
The stacking order matters for cash flow because each layer has its own deposit and final rate. AD/CVD cash deposits are estimates that change at administrative review, and the final rate can be higher or lower than what you deposited. Section 301 exclusions can remove a layer entirely, but only if the exclusion is in force on the entry date.
A worked example, and where importers slip
Take a $50,000 entered value on a product with a 7.5 percent MFN rate and a 25 percent Section 301 duty. The MFN layer is $3,750. The Section 301 layer is $12,500. The total duty is $16,250, which is 32.5 percent of the entered value. Change the classification to a code with a 12 percent MFN rate and the bill jumps to $18,500, before any AD/CVD layer.
The slips are predictable. Importers forget a layer, use the wrong entered value, or classify by habit instead of by the tariff schedule. The fix is a short checklist run before every entry: value confirmed, classification confirmed, each duty layer checked against the current rates. Ten minutes of checking beats a liquidation surprise every time.
Keep reading
Related guides on this site: Section 232 duties on the full customs value of steel and aluminum the first sale rule that cuts dutiable value before duty is even assessed how duty drawback refunds duties on re-exported goods More from LandedWatch.
Frequently asked questions
What is entered value?
Usually the transaction value, the price actually paid or payable for the goods, plus additions like assists and royalties tied to the import. It is the base that every duty layer is calculated on.
Do Section 301 duties stack with antidumping duties?
Yes. Section 301, Section 232, and AD/CVD duties all stack on top of the MFN rate, each calculated on the same entered value. A product can easily carry a total duty far above its HTS rate alone.
What happens if the HTS code is wrong?
CBP can reclassify the goods and re-rate the entry, which changes the duty owed. A binding ruling before shipment is the cheapest way to settle a classification question, and a post-summary correction can fix an error while the entry is still open.
Can duty be refunded after liquidation?
Sometimes. A protest on CBP Form 19 within 180 days of liquidation can recover overpaid duty. Duty drawback can also refund duties on goods that were later exported, up to 99 percent of what was paid.