When a US customer asks “can you quote DDP?”, that is the question Taiwanese sales teams dread most — because DDP means building the duties into the price, and searching “US tariffs” returns news headlines, not numbers you can put into a spreadsheet. This article calculates the tax on one shipment end to end; swap in your own numbers and you can quote.
Step one: HS classification — Taiwan and the US do not use identical codes
The first six digits of the tariff code (the HS Code) are universal, but the US uses the ten-digit HTSUS, with the last four digits set by the US itself. Your Taiwanese export declaration code cannot be used directly to look up the US rate; you take the first six digits and map them to the US ten-digit code. Classify the same product under different codes and the rate can swing from 0% to double digits — this is the foundation of the whole calculation. If classification is uncertain, you can apply to US Customs for a Binding Ruling; the ruling binds Customs, and for long-term B2B shipments it is worth doing.
Step two: stack the taxes layer by layer
Since 2025, Taiwanese goods entering the US usually carry three layers:
- The schedule rate (Column 1 General): looked up by the ten-digit HTSUS code — most industrial goods run 0% to 6%; food, textiles and footwear run higher
- The reciprocal tariff: under the Taiwan–US trade agreement, most Taiwanese goods now carry 15%, on a non-stacking basis — items whose schedule rate is below 15% pay a combined 15% (not 15% added on top), while items already at or above 15% keep their original rate; some items sit on exemption or separate lists, so check the latest version before shipping
- Other additional duties: products containing Chinese components, or determined to be of Chinese origin, may trigger Section 301 additional duties; anti-dumping and countervailing items are separate again
Then two fees: the MPF (Merchandise Processing Fee, 0.3464% of value with a per-entry minimum and cap) and, for ocean freight only, the HMF (Harbor Maintenance Fee, 0.125%).
One shipment, worked through
Assume: a batch of Taiwan-made metal parts, invoice value US$20,000 (FOB), by ocean; the HTSUS schedule rate is 2.5% (below 15%, so the combined 15% reciprocal rate applies), no Section 301:
| Item | Calculation | Amount |
|---|---|---|
| Duty (15% reciprocal, schedule rate included) | 20,000 × 15% | $3,000 |
| MPF | 20,000 × 0.3464% | ≈ $69 |
| HMF (ocean) | 20,000 × 0.125% | $25 |
| Total | ≈ $3,094 |
So the import charges on this shipment are about 15.5% of the goods value. The same shipment paid just $594 before 2024, and about $4,594 during the 2025 period when a 20% stacking tariff applied — the regime has changed twice in two years, which is exactly why old quotations cannot be reused and every shipment starts with a fresh rate check. For the current status of the agreement and how to check before shipping, see the Taiwan–US 15% reciprocal tariff explainer.
Note the tax base: US duties are assessed on the transaction value (usually close to FOB). Unlike Taiwan, freight and insurance are not added into the dutiable value, so swings in ocean rates do not directly change the US duty.
Step three: what goes into a DDP quote
A DDP (Delivered Duty Paid) quote = goods price + international freight + insurance + everything in the table above + brokerage + US inland delivery + your risk buffer. Three practical reminders:
- The reciprocal tariff will change with policy: note on the quotation that “rates follow the US Customs announcement at time of shipment; if the change exceeds X% both parties renegotiate” — do not write 20% in as a permanent promise
- The origin must hold up: duty follows the country of origin. Products with mainland-Chinese components must be judged under origin rules — you cannot label them Taiwan-made because the rate is better. The US is cracking down hard on transshipment and origin misdeclaration, and the penalty is back duties plus fines
- Whoever is IOR pays the duty: under DDP, the Importer of Record is normally a US-side agent appointed by the seller, clearing customs under its bond
What SKYCARGO does on this leg
SKYCARGO INC can act as your Importer of Record and consignee: before shipment we help with HTSUS classification and duty estimation (HS classification, tariff estimation and settlement planning are the first things our B2B service does), we clear and pay under our bond, and after release the cargo moves into our Los Angeles or Oregon warehouse for delivery. If you need to give a US customer a DDP quote, send us the item, the first six HS digits and the value and we will reply within one working day with the full duty structure.
Schedule rates, reciprocal-tariff coverage and exemption lists change with US policy. The numbers here are a worked example — always check the latest CBP and USTR announcements. For reference only.
