China CNC Machining Tariffs & DDP Shipping Guide
HS codes · Section 301 · FOB vs DDP · landed cost with real numbers
Imported CNC machined parts enter the US under HS 8466 or part-specific codes, with Section 301 duties of 7.5-25% on top of MFN rates. FOB Shenzhen and DDP are different risk structures, not just prices: this guide shows the landed-cost arithmetic and the documents that keep a shipment out of customs trouble.
Tariffs are the question behind every US buyer’s quote request, and the answer most suppliers give is a shrug. This guide states the mechanics plainly: which codes machined parts land under, how duty is calculated, what DDP actually transfers, and where the real cost surprises hide — which are almost never the tariff itself.
Which HS code does a machined part land under?
Machined custom parts do not have one code — the code follows the part’s function: 8466 for parts of machine tools, 8536/8543 for electrical and sensor components, 9031 for inspection instruments, 8481 for valves and fittings. The buyer’s customs broker makes the final call, but the supplier should propose a code from the drawing and state it on the commercial invoice. A quote that refuses to name an HS code is pushing customs work onto you.
The code matters more than most buyers expect: Section 301 exclusions, MFN rates and EU tariff schedules all key off it. A wrong code is not a saving — it is a retroactive duty bill with interest.
The landed cost arithmetic, with numbers
| Specification | Capability |
|---|---|
| Unit price (FOB Shenzhen) | $1.00 — the number everyone compares |
| Freight (air, 50 kg) | $0.08 per part on this example |
| Duty (MFN 2.5% + Section 301 25%) | $0.28 |
| Customs brokerage | $0.01–0.02 amortised |
| Landed cost | $1.37 — 37% above the unit price |
Two conclusions follow. First, a 25% tariff does not make Chinese machining 25% more expensive — the duty applies to the customs value, and the unit price gap versus a domestic shop is often larger than the duty. Second, freight mode moves the landed cost as much as the tariff does on light parts; air freight on 50 kg is a rounding error, on 2 kg it is not.
Ask every supplier — domestic and Chinese — for the same four rows and compare. Most tariff anxiety is really un-priced-logistics anxiety.
FOB, DDP and what each actually transfers
- FOB Shenzhen: you control freight and clearance; the price is clean and comparable, and you bear the freight risk from the port. Best when you have a freight forwarder and want the factory cost visible.
- DDP: the supplier delivers duty-paid to your door. Convenient, but the duty is still your economic cost — it is simply prepaid, usually with a margin, and the supplier declares the customs value. Ask to see the declared value.
- DAP/FCA: middle grounds that split the risk at different points; useful for EU buyers with EORI numbers and a broker.
- Whatever the term: get it in writing on the quotation, because FOB and DDP on the same drawing are different numbers and different risk structures, not two spellings of the same deal.
The documents that keep a shipment moving
- Commercial invoice with a correct HS code and honest declared value.
- Country-of-origin statement — the machining country is the origin for substantially transformed parts; we declare it honestly rather than routing assembly to shift origin.
- EN 10204 3.1 material certificates where the drawing requires them.
- For the EU: the buyer’s EORI number and, where relevant, a freight-forwarder power of attorney.
- For regulated sectors: the material traceability the drawing calls out, attached before shipping rather than after a customs query.
What we do at CHX Metal
We quote FOB Shenzhen and DDP both, with the duty line shown so the landed cost is comparable against any domestic quote. HS codes are proposed from the drawing, origin is declared honestly, and certificates travel with the shipment. For US programmes under tariff pressure, the honest conversation is engineering-led: redesign for cheaper stock, relax a tolerance that is costing a grind operation, or split a bill of materials between near-shore assembly and Chinese machined content — not invoice games.
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Send drawing (STEP / PDF / DXF) with material, tolerance and annual volume to mc@chxmetal.com. DFM feedback and a price within 24 hours, NDA on request.
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Frequently asked questions
What tariff applies to CNC machined parts from China to the US?
It depends on the HS code: most machined components carry MFN rates of 0–5% plus Section 301 duties of 7.5–25% on the customs value. We propose the code from the drawing and show the duty line in the quote.
Is DDP cheaper than FOB?
DDP is rarely cheaper economically — it is prepaid duty plus service margin. Its value is administrative convenience and cash-flow predictability, not savings. We quote both so you can compare the landed cost directly.
What is the landed cost premium over the unit price?
On a typical air-freighted 50 kg shipment: freight 5–10%, duty up to 25%, brokerage 1–2% — roughly 30–40% total on the worked example in this guide. On sea freight for heavier parts the freight share drops sharply.
Do you provide country-of-origin documentation?
Yes. We declare the honest machining origin and provide origin statements and material certificates with the shipment. We do not split assemblies to shift declared origin.
Can you quote DDP to the EU and UK?
Yes, DDP is available for EU and UK destinations where the buyer provides an EORI number; duty and VAT lines are shown separately in the quote.