This article explains the current U.S. tariff environment as it applies to goods shipped from Portless's China and Vietnam fulfillment centers to your end customers. It covers duty rates, how tariffs appear on your invoice, and how to raise a question if a charge looks wrong.
It does not cover import duties on inventory shipped inbound to Portless warehouses.
The current tariff environment
For merchants shipping China-origin goods to U.S. customers, the past year brought significant changes. The low-value shipping exemption that previously allowed most DTC parcels to clear customs duty-free was suspended. First for China and Hong Kong shipments in May 2025, then for all countries effective August 29, 2025.
Alongside this, China-specific trade tariffs have been layered over base import duties for most product categories. The rate structure has shifted multiple times since mid-2025. The key changes were a reduction in one China-specific duty component in November 2025, and a further restructuring in late February 2026 following a U.S. Supreme Court ruling that invalidated one tariff authority. The global Section 122 tariff (10%) expired on July 24, 2026, and is no longer in effect. In its place, an additional Section 301 tariff of 10–12.5% took effect the same day, tied to forced labor concerns. See our blog on Section 301 tariffs for details.
The practical result: most China-origin Portless shipments are now subject to duty on every order, calculated against the declared value and HS code of each SKU. Rates vary by product category. See the rate breakdown section below.
For merchants also considering U.S. domestic fulfillment, note that the 10% global Section 122 tariff expired July 24, 2026, and no longer applies. Cost comparisons against U.S. 3PLs should be re-run without that component.
De minimis: current status
What changed: The U.S. de minimis exemption, which previously allowed goods with a declared value under $800 to enter the U.S. duty-free without formal customs entry, was suspended in two phases:
May 2025: Suspension applied specifically to shipments from China and Hong Kong.
August 29, 2025: Suspension extended to shipments from all countries.
What it means for your Portless orders: De minimis no longer applies to U.S.-bound China-origin shipments. All orders now require formal customs entry and are subject to applicable duties regardless of declared value. This is permanent until the policy changes. Postal shipments may have been subject to a transitional simplified tariff process initially, but you should not rely on de minimis treatment for any orders at this time.
Other markets: De minimis for UK, EU, AU, and CA shipments is governed by those countries' own thresholds and has not been suspended by U.S. policy. Check the Country Requirements Hub for destination-specific rules.
How tariffs affect your Portless shipments
What you'll see on your invoice
Tariff-related charges appear as two separate line items:
Tariffs - the duty amount assessed on the declared value of each order
Tariff processing fee - an administrative fee associated with customs documentation handling.
How the rate is calculated
The total duty rate for a given order depends on three components:
Component | What it is | Rate |
Base duty | Standard import duty for the HS code | Varies by product (e.g. 3.4% for HS 3924, 0% for HS 8471) |
Section 301 (forced labor) | Additional China-specific tariff tied to forced labor concerns | 10–12.5%, effective July 24, 2026 |
Section 122 | Global tariff, post-SCOTUS ruling | Expired July 24, 2026. No longer applies |
Illustrative example: A product with a 0% base duty but a high Section 301 rate could reach 35% or more. The components stack. No single rate covers all China-origin products.
Your actual rate will differ based on your product's HS code. HS codes determine both the base duty and the applicable Section 301 rate. To check what rate applies to your SKUs, contact your Customer Success Manager (CSM).
What you need to have on file
Accurate tariff calculation depends on two data points Portless requires per SKU:
HS code - must be the correct 10-digit HTS code for the product
Declared value/COGS - the cost of goods declared per unit
If either is missing or incorrect, duties may be miscalculated. You can update declared values through the Merchant Admin Portal. For HS code questions, Portless can assist with a review; contact your CSM.
What Portless handles vs. what you handle
Task | Portless | Merchant |
Customs documentation preparation | ✓ |
|
Duty payment to CBP at time of shipment | ✓ (billed back to merchant) |
|
HS code review/advisory | ✓ (on request) |
|
Providing correct HS codes and declared values |
| ✓ |
Notifying end customers of potential duty charges |
| ✓ |
Note on Importer of Record: Multiple merchants have asked which legal entity is listed as Importer of Record on customs entries. This has not been formally answered in available source data.
What to watch before the next review
The following are the known variables most likely to affect this article's accuracy before September 2026:
De minimis reinstatement: If the suspension is reversed for any country or category, the billing model for low-value orders changes.
Section 301 forced-labor tariff: New as of July 24, 2026, at 10–12.5%. Watch for scope changes or product-list expansion.
Vietnam tariff treatment: Vietnam-origin shipments are subject to different base duties and may be affected separately by global tariff changes.
IOR clarification: Unresolved as of this version. Any formal Portless policy on importer of record status should be added.
Merchant FAQs
Do my customers have to pay duty at the door? Not if Portless is operating your shipments as DDP (delivered duty paid). In that model, duties are paid by Portless at the time of shipment and billed back to you on your invoice. Your customers receive their order without any customs charge at delivery. Confirm your current DDP/DDU setup with your CSM.
My invoice shows a tariff line and a tariff processing fee. What's the difference? The tariff line reflects the actual duty calculated on the declared value of the shipment. The tariff processing fee covers customs documentation handling. These are separate charges.
My rate looks wrong compared to what I thought we agreed on. Compare your invoice rate against the three components: base duty (check your HS code), Section 301 rate for your product list, and the current Section 122 rate. Tariff rates have changed multiple times since May 2025. The applicable rate is determined by when the shipment cleared customs, not when it was placed. If the numbers still don't reconcile, email your CSM with your invoice number, the line item in question, and the rate you believe should apply.
Does Portless absorb tariff increases or pass them through? Tariffs are passed through to merchants via the invoice. Portless has not confirmed any policy of absorbing tariff cost increases on behalf of merchants.
What's the current tariff rate for my products? It depends on your HS code. The rate is composed of a base duty (varies by HS code) and a Section 301 rate (7.5% or 25% depending on your product's trade list, plus an additional 10–12.5% forced-labor Section 301 tariff effective July 24, 2026). The Section 122 global tariff expired July 24, 2026, and no longer applies. Your Customer Success Manager can confirm the rate applicable to your specific SKUs.
How do I make sure my tariff charges are accurate going forward? Keep your HS codes and declared values current in the Merchant Admin Portal. These are the inputs Portless uses to calculate duties. If either is outdated or incorrect, charges may not reflect the correct rate. Your CSM can help you review your current catalog data.
Notes / Edge Cases
Rate history matters for disputes. Tariff rates have changed multiple times since May 2025. The applicable rate is tied to the customs entry date, not the order or invoice date. If you're auditing past charges, confirm the correct rate for each period with your Account Manager.
Section 301 list assignment varies. Electronics (e.g. HS 8471) may carry 25% Section 301; household goods (e.g. HS 3924) may carry 7.5%. Do not assume a single rate applies across your catalog.
Vietnam shipments. Vietnam-origin goods are not subject to China-specific Section 301 tariffs, but are subject to the global Section 122 tariff and Vietnam-specific base duties. Treatment differs from China-origin orders.
Section 301 forced-labor tariff. As of July 24, 2026, an additional 10–12.5% Section 301 tariff applies tied to forced-labor sourcing concerns, layered on top of existing Section 301 rates. See blog.