The import tax on goods coming from India to the USA is the Harmonized Tariff Schedule duty rate for your product plus an 18% reciprocal tariff, and then federal processing fees on top of that.1The White House. Fact Sheet: The United States and India Announce Historic Trade Deal Certain products carry additional layers: steel and aluminum face Section 232 duties, and some categories are hit with anti-dumping or countervailing duties that can run into the hundreds of percent. India no longer receives duty-free treatment under the Generalized System of Preferences, and the $800 de minimis exemption that once let small packages enter tax-free is currently suspended.2The White House. Continuing the Suspension of Duty-Free De Minimis Treatment for All Countries So virtually every Indian shipment now triggers a tax obligation, and the total is meaningfully higher than importers expect if they’re working from older numbers.
The 18% Reciprocal Tariff
The biggest single line item on most Indian shipments right now is the reciprocal tariff. A 10% baseline reciprocal tariff took effect in April 2025, rose to 25% in August 2025 with a country-specific surcharge, and briefly climbed to 50% total when a separate 25% penalty was added over India’s purchases of Russian oil.3The White House. Addressing Threats to the United States by the Government of the Russian Federation
In February 2026, the Russia-related 25% penalty was dropped and the reciprocal tariff was cut to 18% under a bilateral trade framework between the two countries.1The White House. Fact Sheet: The United States and India Announce Historic Trade Deal That 18% sits on top of the standard HTS duty rate for your product. If the normal duty is 5%, the effective rate is 23%. If it’s 12%, you’re at 30%. These rates move through executive orders, sometimes quickly, so verify the current rate before placing a large order.
Standard HTS Duty Rates and the End of GSP
Every imported product is assigned a ten-digit code under the Harmonized Tariff Schedule maintained by the U.S. International Trade Commission, and that code sets the standard duty rate shown in the “General” column.4International Trade Administration. Harmonized System (HS) Codes5U.S. International Trade Commission. Harmonized Tariff Schedule Rates run from zero on some raw materials up above 20% on textiles, footwear, and processed foods. Classification is granular. A cotton garment under one heading might carry 12% while a nearly identical garment in a different fiber blend falls under another heading at 32%. Getting the code wrong means either overpaying for months or underpaying and facing penalties when Customs catches it.
India used to benefit from the Generalized System of Preferences, which allowed thousands of product categories from developing countries to enter duty-free. That eligibility ended June 5, 2019.6Congress.gov. Generalized System of Preferences (GSP): FAQ Products that once shipped at 0% now pay the full General rate plus the 18% reciprocal tariff. GSP has not been reinstated for India, and the current trade framework gives no indication it will be.
Extra Duties on Specific Products
Some categories face additional taxes beyond the standard duty and the reciprocal tariff. Steel from India carries a 25% Section 232 tariff, and aluminum carries at least 25%, imposed on national security grounds. India has no exemption. These rates stack on top of both the normal duty and the reciprocal tariff, which can push the effective rate on Indian steel above 40% before processing fees.
Anti-dumping and countervailing duties are the other risk. When the Department of Commerce finds that an Indian product is being sold below fair value or benefits from foreign government subsidies, it can impose additional duties that dwarf everything else. A recent investigation into ceramic tile from India alleged dumping margins between 328% and 489%.7International Trade Administration. Commerce Initiates Antidumping and Countervailing Duty Investigations – Ceramic Tile – India These orders apply to specific products from specific countries. Check the International Trade Administration’s enforcement database for your product category before you commit to a purchase order.
Federal Processing Fees on Every Entry
Two federal fees apply on top of duties.
The Merchandise Processing Fee applies to every commercial shipment. For formal entries (goods valued over $2,500), it is 0.3464% of the entered value, with a fiscal year 2026 floor of $33.58 and ceiling of $651.50.8U.S. Customs and Border Protection. Customs User Fee – Merchandise Processing Fees For informal entries (lower-value shipments not requiring a customs bond), the fee is a flat $2.69, $8.06, or $12.09 depending on whether the entry is automated or manually prepared.9U.S. Customs and Border Protection. Information on Customs User Fee Changes Effective October 1, 2025
The Harbor Maintenance Fee is 0.125% of cargo value and applies only to ocean shipments.10eCFR. 19 CFR 24.24 – Harbor Maintenance Fee Air freight from India does not trigger it. On a single sea shipment the amount is modest, but it accumulates across a year of regular importing.
No More $800 De Minimis Exemption
Under 19 U.S.C. ยง 1321, shipments valued at $800 or less per person per day used to enter duty- and tax-free.11Office of the Law Revision Counsel. 19 U.S. Code 1321 – Administrative Exemptions That rule was the reason so many small e-commerce orders and samples from Indian sellers arrived with no tax paperwork at all.
As of February 2026, the de minimis exemption is suspended for all countries, all modes of transportation, and all methods of entry.2The White House. Continuing the Suspension of Duty-Free De Minimis Treatment for All Countries A $50 package from an Indian supplier now technically triggers duty and tax. The executive order makes no exception based on value, origin, or shipping method. Carriers and e-commerce platforms are still adapting collection processes, so expect friction and delays on small orders.
What Value the Tax Is Calculated On
Customs applies duty and the reciprocal tariff to the transaction value: the price you actually paid the Indian supplier, including any commissions or packing costs built into that price.12eCFR. 19 CFR 152.103 – Transaction Value International shipping and insurance are excluded when they are documented separately from the merchandise price.13U.S. Customs and Border Protection. Duty – Cost Insurance and Freight (CIF) In practice, your customs value should match the FOB price, not the CIF price. Bona fide buying commissions can be excluded when the agent works solely for you, doesn’t take ownership of the goods, and invoices the fee separately from the merchandise.14U.S. Customs and Border Protection. Dutiability of Buying Commissions
Customs Bonds, Filing, and Paying
Goods valued above $2,500 cannot clear Customs without a bond in place. A customs bond is a surety guarantee that the government will be paid if the importer defaults on duties, taxes, or penalties.15U.S. Customs and Border Protection. When Is a Customs Bond Required A bond is also required for goods regulated by other federal agencies regardless of value, so an FDA-regulated food shipment from India needs one even below the $2,500 line.
A single-entry bond covers one shipment and is generally set at entered value plus estimated duties, taxes, and fees. A continuous bond covers all shipments over 12 months and is calculated at 10% of duties, taxes, and fees paid the prior year, with a $100 minimum.16U.S. Customs and Border Protection. Bonds – How Are Continuous and Single Entry Bond Amounts Determined For anyone importing from India on a repeating basis, the continuous bond is almost always cheaper per shipment.
Filing runs through the Automated Commercial Environment. The core document is CBP Form 7501, the Entry Summary, which lists the classification, valuation, applicable tariff rates, and total taxes owed.17U.S. Customs and Border Protection. CBP Form 7501 Entry Summary The importer has 10 working days from the date the goods are released to submit the Entry Summary and deposit estimated duties.18eCFR. 19 CFR 142.23 – Entry Summary Filing The statute allows up to 12 working days in certain situations.19Office of the Law Revision Counsel. 19 U.S. Code 1505 – Payment of Duties and Fees Payment usually clears via the Automated Clearing House. Most importers work with a licensed customs broker; given how many tariff layers currently apply to Indian goods, the fee is generally cheaper than the mistakes it prevents.
Paying at entry doesn’t close the file. Customs reviews each entry through liquidation, which now runs on a weekly cycle with entries finalizing each Friday.20U.S. Customs and Border Protection. Liquidation in ACE At liquidation, Customs can adjust the amount owed up or down based on its own review. If additional duty is owed, you get a bill; if you overpaid, you get a refund. The process typically takes months and can be extended up to three years.
Keep Your Records for Five Years
Federal law requires importers to retain entry documentation for five years from the date of entry.21Office of the Law Revision Counsel. 19 U.S. Code 1508 – Recordkeeping Keep the Indian supplier’s commercial invoice, the packing list, the Entry Summary, proof of payment, and any correspondence about classification or valuation. Customs can audit at any point in that window, and failing to produce records carries its own penalties. With the number of tariff layers currently stacked on Indian goods, careful records are the best defense if Customs later questions whether you paid the right amount.