‘HS tariff rate’ refers to a ‘Harmonized System’ of tariff codes, a world-wide standardized system of codes used to categorize international shipments.
I checked the customs declaration on Maulik’s boxes and they already have an HS code of ‘3004:India’. Probably all the Indian shippers already include this, but you might want to check your boxes.
I turned to AI for further explication, and impact after 8/29: TLDR: The tariff should be zero as long as India retains ‘Most Favored Nation’ status, tradewise.
User:
Ok, I just checked a box from a prior shipment, and it already has an HS code which is ‘3004:India’. Should this be enough information? What tariff is applied to 3004 after 8/29?
Assistant:
If your shipment lists “3004: India” on the customs form, that means it is classified under HTSUS Heading 3004 (“medicaments … for therapeutic or prophylactic uses”), with India as the country of origin.
Is that enough info?
Yes — it’s exactly what’s needed:
-
3004 properly identifies the type of goods (pharmaceuticals packaged for retail use).
-
India indicates country-of-origin, which determines tariff treatment.
This combination should allow CBP to assign the correct duty rate rather than guessing. Your HS code is valid and helpful — well done.
What tariff applies post‑August 29?
Step 1: Does the medicinal HS code 3004 carry duty?
Under U.S. tariff law, most retail-packaged medicaments in HTS heading 3004 from India are duty-free in Column 1 rates (most-favored-nation basis) (usitc.gov, usitc.gov, cbp.gov). So the ad valorem rate is effectively 0%.
Step 2: How does the new postal duty regime affect you?
Starting August 29, 2025, packages via the postal system still must pay either:
- A flat specific duty based on the country’s effective tariff rate or
-
Ad valorem duty (a percentage of value) if that rate applies — whichever is lower — during the six-month transition (whitehouse.gov, greenworldwide.com, theverge.com).
India’s effective tariff rate on 3004 is 0%, clearly under 16%, placing it in the lowest tier.
- Tier threshold: < 16% → flat duty $80 per item
- Applied ad valorem: 0% of declared $ value = $0
CBP allows the importer (or postal carrier) to choose whichever is lower. They will select the $0 ad valorem option, since it’s cheaper than the flat $80.
After the interim six-month window ends, only ad valorem remains, which in your case remains 0.
Summary Table
HS Code |
Country |
Duty‑free under HTS? |
Tier |
Postal Duty Option (Aug 29-Feb 2026) |
Net Duty |
3004 |
India |
Yes (0%) |
<16% |
Choose between $80 flat or 0% ad valorem
|
$0 |
Bottom line
Because you’ve got HS 3004 and declared India origin, CBP recognizes your item as pharmaceutical, duty‑free under U.S. law. Under the new rules, even though postal shipments require a tariff charge, India’s effective tariff is 0%, so you pay $0.
My confidence: high.
One further wild card is the fact that India buys huge amounts of oil from Russia, and could get hit something tariff-related, as Trump is proposing more Russia-related sanctions.
Edit:
I queried further as to what this statement is all about:
’ CBP allows the importer (or postal carrier) to choose whichever is lower. They will select the $0 ad valorem option , since it’s cheaper than the flat $80.’
And the bottom line is that for our small shipmments there’s no ‘election’ to be made, it’s all handled electronically based on HS code.