Impact of Chinese Tariffs on Importing Vending Machines
Overview of Tariff Types
-
MFN Duty The Harmonized Tariff Schedule classification
8476.89.00for automatic goods‑vending machines carries a Most Favored Nation (MFN) duty rate of 0% ad valorem. 1 - Section 301 Tariffs Since July 6, 2018, the USTR has imposed additional Section 301 duties—typically 25% ad valorem—on covered Chinese imports under Lists 1–3 of the Trade Act of 1974. 2
- Additional China/HK Tariff (HTS 9903.01.24) Effective March 4, 2025, an extra 20% ad valorem surcharge applies to goods of China and Hong Kong, in addition to any other duties. 3
Pricing Analysis and Examples
Below are illustrative landed‑cost scenarios for a vending machine with an FOB price of USD 2,000:
| Cost Component | Calculation | Amount (USD) |
|---|---|---|
| FOB Machine Price | – | 2,000.00 |
| Section 301 Tariff (25%) | 2,000 × 0.25 | 500.00 |
| Additional China/HK Tariff (20%) | 2,000 × 0.20 | 400.00 |
| Freight & Insurance (CIF) | estimated per Incoterms CIF4 | 240.00 |
| Customs Broker Fee | avg. USD 50–150 per entry5 | 100.00 |
| Merchandise Processing Fee (MPF) | 0.3464% of CIF value (min $32.71; max $634.62)6 |
32.71 |
| Total Landed Cost | — | 3,272.71 |
What does this mean for VapeTM?
VapeTM is committed to supporting our customers during challenging times. In light of recent tariff changes, VapeTM will absorb the majority of the Chinese tariff to ensure minimal impact on our customers. While new prices may reflect a slight increase, we are actively collaborating with regulatory authorities both domestically and internationally to explore legal avenues to reduce shipping costs for our smart vending equipment.
Frequently Asked Questions
- How do I know my vending machine’s HS code?
- Automatic goods‑vending machines typically fall under HTS
8476.89.00. You can confirm classification by consulting CBP rulings or a customs broker.1 - Is my product subject to Section 301 tariffs?
- Use the USTR’s Section 301 Product Search tool by entering your 8‑digit HTS subheading to see if it is covered and what the duty rate is.7
- Can I get an exclusion for my machinery?
- Certain manufacturing machinery under Chapters 84 & 85 has an exclusion process through May 31, 2025. Vending machines generally do not qualify for these exclusions.8
- How do I lower my landed cost?
- Strategies include negotiating better FOB pricing, optimizing shipping routes, combining multiple machines into one shipment, and leveraging duty‑drawback or free trade agreements where applicable.
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Footnotes
- MFN duty rate for HS 8476.89.00 is 0% ad valorem. ↩︎
- Section 301 tariffs impose an additional 25% duty on covered Chinese imports under Lists 1–3. ↩︎
- HTS heading 9903.01.24 adds a 20% ad valorem surcharge to China/HK imports effective March 4, 2025. ↩︎
- Components of CIF (Cost, Insurance, Freight) as defined by Incoterms 2020. ↩︎
- Customs broker fees average USD 50–150 per entry. ↩︎
- Merchandise Processing Fee is 0.3464% of value (min $32.71; max $634.62). ↩︎
- USTR Section 301 Product Search tool. ↩︎
- Exclusion process for manufacturing machinery under Chapters 84 & 85 valid through May 31, 2025. ↩︎