Apparel is one of the most heavily taxed product groups entering the US. Base duty rates commonly range from around 10% to over 30% of value, depending on the garment, fabric and fibre — before any additional duties.
What determines the HTS code
- Knitted or woven: knitted garments fall under chapter 61, woven under chapter 62.
- Garment type: shirts, trousers, dresses, jackets, underwear each have their own headings.
- Gender and age: men's/boys' vs women's/girls', and babies' garments.
- Fibre content: cotton, wool, synthetic and blends — man-made fibre garments often carry the highest rates.
Layers to include in a DDP price
| Layer | Comment |
|---|---|
| Base HTS duty | Often the largest component for apparel |
| Additional duties by origin | Check rates in force on the import date |
| MPF and HMF | 0.3464% (min/max) and 0.125% for ocean |
Legal ways to reduce duty
- First sale valuation: where goods are sold through a middleman, duty may be based on the factory-to-middleman price if the sale meets US requirements (bona fide sale, destined for the US, arm's length).
- Accurate classification: fibre content and construction must be documented; mistakes go both ways.
- Correct valuation: exclude non-dutiable charges such as international freight and insurance when properly separated.
- Market diversification: for Canada, CPTPP can eliminate duty for qualifying garments — see garments to Canada.
Never under-declare value or misdescribe fibre content — penalties and seizure risks far outweigh savings.
Duty rates and trade rules change. Figures here are general guidance — confirm current rates for your exact HTS codes before quoting DDP prices.