International Prototype Shipping
Xometry's checkout price for international prototypes is all-inclusive, meaning there are no additional duties, taxes, or fees to the customer. Standard parcels have free shipping options available. Freight or oversized packages may require additional shipping charges.
What qualifies a part as a Prototype?
For customs purposes, particularly for duty-free treatment when importing into the U.S., a "prototype" has a specific definition. It refers to originals or models of parts that are intended exclusively for non-commercial purposes like development, testing, product evaluation, or quality control. These items are typically imported in limited quantities suitable for testing, not for resale or incorporation into products that will be sold.
Note: Items intended for commercial sale, inventory, or use beyond testing/evaluation do not qualify as prototypes for customs purposes.
Qualifying prototypes can often enter the U.S. duty-free under a specific customs provision (HTSUS subheading 9817.85.01). Xometry includes all anticipated duties, fees, and taxes in the purchase price for international prototypes, including any applicable tariffs.
International Production Orders and Standard HTS Classifications
Standard customs procedures and costs apply to international orders that are not prototypes (i.e., parts intended for commercial use, resale, inventory, or incorporation into final products for sale).
You may be asked to provide an HTS code when ordering custom parts internationally. For many, this can be a new and confusing subject. In this article, we’ll try to clarify these codes, why they are essential, and the tools you can use to find relevant HTS codes for your parts.
What is an HTS code?
HTS (Harmonized Tariff Schedule) codes are product classification codes that the United States Customs uses when importing products into the country. They are primarily used to determine the customs duties paid on imports. The codes are typically 8-10 digits long and broken into several parts that classify the goods.
The first six digits of an HTS code are the same as the HS (Harmonized System) codes used by other World Customs Organization (WCO) members to classify goods for customs purposes. The subsequent digits are used for further classification in the United States. In the example below, we break down the different parts of HS and HTS codes to provide a better understanding of how they work:
Why is it essential to have a correct HTS code?
Providing a correct HTS code is crucial for several reasons. The biggest reason is to prevent hold-ups and delays at customs. Suppose an exported or imported good is missing classification or appears to be incorrectly classified. In that case, customs agents may hold the items, and the shipment will be cleared once the issue is resolved. This can result in severe delivery delays for your parts.
Another important reason to be accurate in your classifications is to ensure correct duty amounts. If you improperly classify your goods, it’s possible you could be charged duties higher than you should have been, as different goods can have different duty rates associated with them.
Why do customers need to provide HTS codes?
Unlike a specialty manufacturer that produces one type of good, Xometry manufactures custom parts and assemblies for our customers with endless possibilities across various industries. Without our customers’ input, the nature of our business makes it nearly impossible to know precisely what each part we produce is intended to be used for. For liability reasons, we cannot guess what part will be used to determine its classification; therefore, we ask our customers to provide the relevant HTS code for their goods.
How do you find HTS codes?
The best way to find the right HTS code for your product is to use an HTS search or lookup tool. The U.S. International Trade Commission has a tool you can use here: https://hts.usitc.gov/. Using a tool like this, you can search for keywords to pull up results related to your search, then choose the code which classifies your product the best.
For additional information about HS and HTS codes, you can visit the International Trade Administration’s website here: https://www.trade.gov/harmonized-system-hs-codes.
Duties, Fees, and Taxes for Production Orders
Unlike qualifying prototypes, production parts are subject to duties based on their HTS classification, value, and country of origin.
These costs can vary significantly depending on the specific part and current international trade regulations, including potential additional tariffs (like Section 301 or AD/CVD for certain goods from specific countries).
Because these charges are determined by customs authorities at the time of import and depend on factors specific to the shipment, the initial purchase price for international production orders generally does not include these potential import duties, fees, or taxes. These additional costs may be assessed upon arrival and are typically the responsibility of the importer of record.
Understanding Import Costs: Tariffs, Duties, Fees, and Taxes
When importing goods into the U.S., you might encounter several terms related to costs assessed by U.S. Customs and Border Protection (CBP). Here’s a quick guide to help clarify them:
- Tax: This is the most general term for a mandatory financial charge imposed by a government. In the context of imports, duties, tariffs, and certain fees are all types of taxes levied on goods entering the country.
- Duty (Customs Duty): This is a specific type of tax levied on goods crossing international borders, primarily imports. The amount of duty is calculated based on the value of the goods, their country of origin, and their classification under the Harmonized Tariff Schedule (HTS). Duties primarily serve to generate government revenue and control the flow of goods.
- Tariff: While often used interchangeably with "duty", a tariff technically refers to the rate of duty listed in the official schedule (the HTS) or a specific type of duty imposed as part of trade policy. Tariffs are often used strategically to protect domestic industries by making imported goods more expensive or in response to trade disputes (e.g., Section 301 tariffs on goods from China). Essentially, a tariff is the policy or rate that results in a specific duty amount being charged.
- Fee: This is a charge collected by CBP for specific services related to processing imported goods. Common examples include the Merchandise Processing Fee (MPF), which covers the cost of processing the import entry, and the Harbor Maintenance Fee (HMF), which is applied to goods arriving by sea to cover port upkeep. These fees are separate from and often charged in addition to applicable duties or tariffs.
Understanding these terms can help you better anticipate the total landed cost of your international shipments.