Import Duty on Readymade Garments in USA from India Tariff Rates & Compliance

Overview:
The United States import duty structure for Readymade Garments from India is primarily based on the Harmonized Tariff Schedule (HTS) classification and the declared transaction value. Since India does not currently qualify for GSP status on apparel, most imports are subject to Most-Favored-Nation (MFN) rates. These rates vary significantly depending on the fiber content, construction, and gender of the garment.

Duty Types:
- Ad Valorem: This percentage-based tax is applied to the transaction value of the garments. It applies to nearly all apparel imports from India.
- Specific Duty: This is calculated based on physical units like weight or quantity. It is often applied to specific categories like certain types of wool products.
- Compound Duty: This combines both ad valorem and specific rates. It applies to complex garment classifications requiring both value-based and unit-based taxation.
- Section 301: These are additional tariffs on specific countries like China. Currently, these duties do not apply to readymade garments originating from India.
- Antidumping: These are additional duties levied if goods are sold below fair market value. They are applied only after specific investigations into Indian garment exporters.
- Excise Tax: This is an internal tax on specific commodities. It is generally not applicable to the import of standard readymade garments.
- MPF: The Merchandise Processing Fee is an administrative charge on all formal entries. It is calculated as 0.3464% of the shipment value.
- HMF: The Harbor Maintenance Fee applies to shipments arriving via sea ports. It is calculated as 0.125% of the cargo value to fund port upkeep.