Import Tax from India to USA: Tariffs, Duties, and Fees

The import tax on goods from India to the USA is layered: a standard customs duty set by the product’s tariff code, an 18 percent reciprocal tariff on most Indian-origin goods, a merchandise processing fee on every formal entry, a harbor maintenance fee on ocean shipments, and, for some products, Section 232 tariffs or anti-dumping and countervailing duties that can stack on top of everything else. The total depends heavily on what you’re importing. Two shipments of similar-looking goods can carry very different bills.

The 18 Percent Reciprocal Tariff

The single biggest cost factor right now is the reciprocal tariff. In April 2025, Executive Order 14257 imposed reciprocal tariffs on dozens of countries, with India initially at 26 percent on top of existing duties. After a 90-day pause and later adjustments, the rate was set at 25 percent in July 2025. In February 2026, the United States and India reached an agreement lowering it to 18 percent on originating goods from India.¹

The 18 percent rate covers a broad range of categories: textiles and apparel, leather goods, footwear, plastics, rubber, organic chemicals, home décor, artisanal products, and certain machinery.¹ Pending the successful conclusion of an Interim Agreement, the United States may remove the reciprocal tariff entirely on some product lines, including generic pharmaceuticals, gems and diamonds, and aircraft parts.² The situation is fluid, so confirm the current rate for your product before shipping. The reciprocal tariff applies on top of the standard customs duty, not instead of it.

The Standard Customs Duty

Every item entering the United States is assigned a 10-digit code from the Harmonized Tariff Schedule of the United States (HTSUS), and that code sets the base duty rate. Two products that look alike can carry very different rates. A cotton woven shirt and a cotton knit shirt fall under separate headings with different percentages. Getting the code wrong can trigger fines, delays, and retroactive assessments.

India receives normal trade relations treatment, so Indian goods are assessed at the Column 1 General rates. Depending on the product, that rate can be zero (for some raw materials) or upward of 25 percent (for goods like textiles and footwear). India no longer qualifies for reduced rates under the Generalized System of Preferences, which was terminated for India in 2019.³ If you’re unsure of the correct classification, you can request a binding ruling from U.S. Customs and Border Protection before shipping, or search CBP’s Customs Rulings Online Search System (CROSS) for published decisions on similar products.⁴

Federal Processing Fees on Every Entry

On top of the product-specific duty and the reciprocal tariff, every formal entry triggers a Merchandise Processing Fee. For fiscal year 2026, the MPF is 0.3464 percent of the imported goods’ value, with a minimum of $33.58 and a maximum of $651.50 per entry.⁵ Manual filings carry an additional $4.03 surcharge.

Ocean shipments also owe a Harbor Maintenance Fee of 0.125 percent of the cargo’s value, with no maximum cap.⁶ Air freight shipments are not subject to the HMF.

Extra Duties That Can Stack on Certain Products

Some Indian products carry punitive duties layered on top of everything already discussed. These can turn a profitable import into a losing one.

Anti-Dumping and Countervailing Duties

When the Department of Commerce finds that a foreign manufacturer is selling goods in the U.S. below fair market value or that a foreign government is subsidizing exports, CBP imposes anti-dumping duties (AD) or countervailing duties (CVD) at entry.⁷ Indian steel, certain chemicals, shrimp, and various textile products have all been subject to AD/CVD orders. Rates vary by manufacturer and can exceed 100 percent of the product’s value in extreme cases. Check the Federal Register or the Commerce Department’s AD/CVD database to see whether your Indian supplier is covered by an active order.

Section 232 Tariffs on Steel and Aluminum

Steel and aluminum imports from all countries, including India, face Section 232 national-security tariffs. As of June 2025, those tariffs were increased to 50 percent on covered products. They apply to the steel or aluminum content and are separate from both the reciprocal tariff and any AD/CVD on the same shipment. Importing Indian steel, for example, could mean paying the Column 1 duty, the 18 percent reciprocal tariff, a Section 232 tariff, and potentially an anti-dumping duty on the same entry.

Excise Taxes on Specific Categories

Certain goods trigger federal excise taxes collected alongside customs duties. Distilled spirits, beer, wine, and tobacco products imported from India are subject to excise taxes administered by the Alcohol and Tobacco Tax and Trade Bureau, calculated on volume or quantity rather than value.⁸ If you’re bringing in alcohol or tobacco, budget for these separately.

How Customs Values Your Shipment

Duties and the reciprocal tariff are percentages, so the value CBP assigns to your shipment matters as much as the rate. Under federal law, the primary method is transaction value: the price you actually paid or agreed to pay for the goods when purchased for export to the United States.⁹ That figure isn’t just the invoice total. CBP adds several cost components to the base price:

Packing costs incurred by the buyer to prepare the merchandise for export.
Selling commissions the buyer pays to agents arranging the sale.
Assists, meaning materials, tools, engineering work, or design elements the buyer supplies to the manufacturer free or at reduced cost.
Royalties and license fees the buyer must pay as a condition of the sale, such as trademark licensing.
Any portion of future resale proceeds that flows back to the seller.

Each addition must be supported by documentation. If transaction value can’t be established because the sale doesn’t meet the legal requirements, CBP works through a hierarchy of alternative methods starting with the transaction value of identical merchandise.⁹

Low-Value Shipments

Not every shipment from India carries the full stack of duties and fees. Federal law provides two thresholds that simplify things.

Shipments valued at $800 or less per person per day may enter duty-free under the de minimis provision in 19 U.S.C. § 1321.¹⁰ This covers most goods, but shipments subject to anti-dumping or countervailing duties, quotas, or certain other restrictions do not qualify.¹¹ It’s commonly used for e-commerce purchases and small parcels.

Commercial shipments valued under $2,500 generally qualify for informal entry, which has simpler documentation and lower fees than a formal entry.¹² Duties still apply. Goods subject to quotas, AD/CVD orders, or other agency requirements cannot use informal entry regardless of value.

Putting the Layers Together

To estimate the total tax on an Indian shipment, start with the entered value, then add each applicable layer:

The Column 1 HTSUS duty for the product’s classification.
The 18 percent reciprocal tariff, unless the product falls into a category the Interim Agreement removes.
The Merchandise Processing Fee at 0.3464 percent, capped at $651.50.
The Harbor Maintenance Fee at 0.125 percent if the shipment arrives by ocean.
Any Section 232 tariff (currently 50 percent) on steel or aluminum content.
Any anti-dumping or countervailing duty tied to your specific supplier.
Any federal excise tax on alcohol or tobacco.

Rates and exemptions on the India trade file have moved several times in the past year, so verify the current numbers for your HTSUS code before you commit to a purchase. A binding ruling from CBP is the safest way to lock in classification, and the Commerce Department’s AD/CVD database is the place to confirm whether your supplier carries a punitive duty order.

1
The White House. United States-India Joint Statement
2
The White House. Fact Sheet: The United States and India Announce Historic Trade Deal
3
Office of the United States Trade Representative. United States Will Terminate GSP Designation of India and Turkey
4
U.S. Customs and Border Protection. Rulings and Legal Decisions
5
U.S. Customs and Border Protection. Customs User Fee – Merchandise Processing Fees
6
eCFR. 19 CFR 24.24 – Harbor Maintenance Fee
7
Office of the Law Revision Counsel. 19 USC 1671 – Countervailing Duties Imposed
8
U.S. Customs and Border Protection. Duty, Taxes and Other Fees Required to Import Goods Into the United States
9
Office of the Law Revision Counsel. 19 U.S. Code 1401a – Value
10
Office of the Law Revision Counsel. 19 USC 1321 – Administrative Exemptions
11
U.S. Customs and Border Protection. Section 321 Programs
12
U.S. Customs and Border Protection. Filing an Informal Entry for Goods That Are Less Than $2500 in Value