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Worked example

What the tariff costs on a hand tool set

The category where freight is a rounding error and the classification decides whether the project works.

Hand tools are the mirror image of furniture. They are dense, so ocean freight is a small share of what you pay and there is nothing to gain from clever packing. What decides this category is a tariff line most buyers never look up.

Where the money goes

At the median wholesale price, 1,000 sets, delivered in the United States by sea:

Goods55%
Duty23%
Fees and handling16%
Ocean freight6%

The tariff is close to four times the freight. Duty adds more per set than the export packing, inland transport, documents, insurance, clearance and last-mile delivery combined. The conventional advice — optimise the carton, negotiate the freight — buys almost nothing here.

The part that surprises people

Under the US tariff heading covering tools of two or more of headings 8202 to 8205 put up in sets for retail sale, the whole set takes the duty rate of the highest-rated tool in it.

The consequence is direct: adding a single pair of pliers to a screwdriver set can raise the duty on every unit in the shipment, including the screwdrivers. Set composition is a costing decision as well as a product decision, and it is worth settling before the specification is fixed.

On top of the base rate, goods of Chinese origin under this heading currently carry a Section 301 additional duty. At the median sourcing price that one line takes the landed cost from about $3.18 to about $3.77 per set — roughly 19%.

What is assumed here

  • Price: the median of 21 current wholesale listings for multi-piece hand tool sets.
  • Volume and weight: from a real supplier carton specification — 49 × 29 × 26 cm, 20 sets per carton, 23 kg gross.
  • Duty: the base rate for the set heading plus Section 301 at 25%, verified against the current US tariff schedule. Both parts are checkable, and both change.
  • Quantity: 1,000 sets, ocean freight, delivered in the United States.

The full model, the exact classification and the source date are on the hand tool sets cost page. Establishing your own classification is the importer’s responsibility rather than the supplier’s — our guide sets out how.

Frequently asked questions

Where do these figures come from?
Our own cost model, applied to the median of 21 current wholesale listings, a real supplier carton specification and a tariff classification verified against the published schedule. Every input is on the linked cost page, dated, so you can check it or substitute your own. These are costings rather than client engagements.
Why does adding one tool change the duty on the whole set?
Because a retail set is dutiable at the rate of the highest-rated article in it. Adding a single higher-rated tool therefore raises the rate applied to every unit in the shipment, not just that item.
Is the Section 301 rate still current?
It was when we last checked it against the published tariff schedule, and the date of that check is stated on the cost page. Coverage, rates and exclusions change, so confirm the current listing for your own classification before relying on any figure — including ours.

The data behind it

Where these numbers come from

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