The United States applies additional tariffs on all HTSUS codes that represent products that may contain steel and aluminum, depending on the amount of metal in the product. By default, US Customs and Border Control will assume these products contain 100% metal unless it is specified differently on the commercial invoice.
Previously, our duties and import tax calculations in checkout applied the same default – assume those products contain 100% metal. Now, duties and import taxes supports customizing the percentages of your product’s value that Section 232 steel and aluminum tariffs apply to.
This new setting applies to all items in your store that fall under Section 232. To customize this amount, visit your admin’s duty settings and enter the percentage in ‘United States Section 232 percentage’.
To ensure you also receive a reduced rate when shipping your orders, ensure you also update your commercial invoices to reflect your product’s proportion of metal.
You can learn more about collecting duties and import taxes at checkout in the help center.
Shopify Duties and Import Taxes: US Section 232 Tariff Customization
Discover the Update: Real-World Impact in Plain English
Imagine you’re a Shopify merchant dealing with products that incorporate metal elements, such as a modern desk lamp with a steel base and aluminum frame. Previously, you were stuck paying a high flat rate tariff as if the lamp were 100% metal. Shopify’s latest update allows you to specify the actual metal content percentage, ensuring you’re not overcharged on duties and import taxes. This customization not only improves cost efficiency but also simplifies your financial operations by aligning them more closely with real-world product components.
Let’s Talk on Tech Side
Delving into the technical aspect of this update, Shopify’s platform now integrates a more sophisticated duties and import tax calculation for those affected by the US Section 232 tariffs. The key feature is the input field labeled ‘United States Section 232 percentage’ within your Shopify admin duty settings. This field allows you to define the exact metal composition of your products, thus customizing the tariff rates for each relevant item.
For developers managing merchant accounts, it’s crucial to ensure that the API integrating with your checkout accurately reflects these updated values. For example, you could use the API endpoint to retrieve duty percentages:
// Example API request to get duty percentage const fetchDutyPercentage = async (productId) => { try { const response = await fetch(`/api/duties/${productId}`); const data = await response.json(); return data.section232Percentage; } catch (error) { console.error('Error fetching duty percentage:', error); } }; Implementing such code ensures the checkout process dynamically adjusts itself to the customized tariff rates, offering a seamless experience for both merchants and customers.
Business Growth Unleashed: What This Means for Merchants
This new feature signals a significant opportunity for Shopify merchants aiming to optimize their international trade operations. By adjusting the metal content percentage in tariffs, businesses can efficiently reduce costs associated with overestimated duties. This adjustment not only passes savings to the merchant but often allows for more competitive pricing of goods, enhancing the business’s market position.
Merchants can invest the cost savings back into their businesses, increasing budget flexibility for marketing, product development, or expansion into new markets. Additionally, the transparency in reporting and payments can improve vendor and customer trust, key components in customer retention and brand loyalty.
Meanwhile, accurately representing product composition in commercial invoices helps in compliance, reducing the risk of customs-related delays and penalties, further streamlining operations.
Trident Spark: Your Trusted Shopify Innovation Partner
At Trident Spark, we pride ourselves on being a leading force in Shopify development. Our expertise ensures that you leverage every updated feature, like the Section 232 customization, to maximize your business potential. We offer tailored solutions, from basic Shopify setup to complex custom app development, all aimed at delivering unparalleled value and competitive advantage.
Our team stays ahead of e-commerce trends to bring the latest innovations directly to your business, ensuring seamless integration and optimized performance.
Connect with Trident Spark Today!
Don’t let opportunities for enhancing your Shopify store slip by. Contact Trident Spark today to explore how our expert team can implement the latest Shopify features for your business growth. Whether you need an upgrade or a custom solution, we’re here to help you succeed in the competitive world of e-commerce.