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Tariff-Related FAQs

As tariff regulations continue to evolve, you might have questions about how they may impact your shipments. To make things easier, we’ve put together a comprehensive and easy-to-navigate FAQ with clear answers to your most common concerns.

Navigating the evolving tariff landscape can be challenging, especially with ongoing changes from the U.S. administration. Whether you’re uncertain about Country of Origin (COO) requirements, manufacturer details, or how tariffs might affect your shipments, we’re here to provide clarity.

The most recent update is that Section 321 (de minimis entry) will remain in effect, with no changes impacting shipments until May 2. Shipments originating from China and Hong Kong could be affected when shipping to the U.S as of the aforementioned date; however, further clarification is still needed. For the latest updates, be sure to check out our dedicated blog.

Below, we’ve gathered answers to frequently asked questions on key topics. Use this FAQ to stay informed about the potential changes and ensure your China origin shipments continue to run smoothly should tariffs come into effect.

Recommended to read before consulting this FAQ:

Table of Contents

Country of Origin (COO) & Manufacturer Details

Q: What if I hand make an item and one of the components is from China, but the actual completed product is made in Canada?

A: If more than 51% of the materials and labour was done in Canada, then the product can be considered to be made in Canada. 

Q: How do I provide proof of Country of Origin?

A: The Country of Origin is usually indicated on the product itself (e.g., Made in China/U.K.). You can also provide a commercial invoice or manufacturer documentation if it is not included. If you sell collectibles or other items, you’re responsible for determining and providing the correct Country of Origin.

⚠️Note: Incorrect declarations can result in fines up to $50,000 USD at the border.

The Country of Origin for customs is where the item was manufactured, not the brand’s home country. For example, if a Coach bag is made in China, its origin is China, not the U.S. Check the tag or stamp for details.

Q: What if I don’t know the Country of Origin? 

A: You will be unable to ship until you are able to find the Country of Origin of the product.

Q: For books, is the Country of Origin determined by where it is published? 

A: The Country of Origin is determined by where the book was printed. If the book was printed in China and published in the U.S., the COO is considered to be China (and the book must bear a “Printed in” wordmark as well).

Q: If I receive parts for my products, shipped in bulk from China to the U.S. (with tariffs already paid by the importer), and then I ship them from the U.S. to my customers in the U.S., will I need to pay tariffs again when I send them to my customers?

A: You’ll need to determine if the item undergoes substantial transformation in the U.S. based on specific criteria. If the item is a finished product that was shipped to the U.S. and then redistributed to Canada, the country of origin (COO) remains China, and it may be subject to tariffs when shipping back to the U.S. from Canada. However, if the parts are used to create a new product in the U.S., the COO could change to the U.S. In that case, you wouldn’t need to pay tariffs when shipping from Canada to the U.S.

Q: Will Country of Origin labeling be required as of May 2, 2025? 

A: Yes, U.S. Customs will require all shipments to have proper Country of Origin (COO) labeling. Each item must be physically labeled with its COO, and it’s important to use the full country name (e.g., “Made in Mexico”) rather than abbreviations (e.g., “Made in MX”), as this could lead to different interpretations with customs officers.

Q: What if the item is old and I can’t determine the manufacturing information? For example, I sell vintage items and don’t have access to manufacturing details — what should I do?

A: If tariffs are applied and the item falls under the tariff schedule (COO = CN or HK), the only option you will have is the DDU option, Tracked Packet USA, as our U.S. DDP option requires manufacturing information. If the item is not subjected to tariffs, you can continue to ship using any U.S. service.

Q: If the manufacturer is out of business, is there any value in including the name of the defunct company in the manufacturer contact information section if there’s no contact name?

A: If the field is asking for a manufacturer’s point of contact, you could still proceed with the DDP option, as long as you provide all the necessary details to generate the manufacturer ID. This ensures that all required information is properly submitted, even if the company is no longer in business.

Q: If music is recorded in Canada, but the CD was made in the U.S., what is the COO and manufacturer information?

A: The Country of Origin (COO) and manufacturer information are determined by where the item was made. In this case, since the CD was manufactured in the U.S., the COO would be the U.S. The manufacturer information would also reflect the U.S. as the location of production.

Q: For labeling requirements, are they still necessary for items sent to the consumer? And if so, should I use something like “Components manufactured in Italy and India, Handcrafted or Assembled in Canada”?

A: To determine the correct COO label, you should use substantial transformation. Once you’ve determined the COO, label the item with “Made in X (Country).” For example, if the item was substantially transformed in Canada, label it as “Made in Canada.”

Tariff Impact, Taxes & Duties

Q: Will I need to separate shipments originating from China and ones who do not?

A: No, it’s unnecessary to separate shipments based on their Country of Origin. You can continue dropping off your shipments as usual, based on the destination.

Q: Does this change apply to lettermail as well?

A: Yes, the same rules of Country of Origin and HTS codes (if from China and Hong Kong) apply for lettermail.

Q: Who is the importer? 

A: You, the seller/merchant, are the importer. Chit Chats provides transport and postage solutions but does not handle importation responsibilities. With DDP (Delivery Duties Paid), you pay for the taxes upfront, whereas with DDU (Delivery Duties Unpaid), the recipient pays the duties and taxes.
Example of DDU: When you order from Japan to Canada, and the value exceeds $20 CAD, Canada Post will require you to pay customs and duties fees when picking up the package.

Q: Is Taiwan also part of the tariffs imposed for China/Hong Kong origin?

A: No, Taiwan is not included in the tariffs for China/Hong Kong origin.

Q: If goods originate from the U.S. (COO = U.S.), no duties/taxes would apply if they cross from Canada to the U.S. (should tariffs go into play)?

A: Correct, if the Country of Origin is the U.S., no tariffs would apply when the goods cross from Canada to the U.S. If put in place, they will only affect shipments with a COO being China/Hong Kong.

Q: What should I declare on the commercial invoice?

A: You should declare the retail value of the product only, excluding any discounts, shipping fees, or sales tax. It should reflect the value shown in the online listing.

Q: How are taxes and duties calculated?

A: Taxes and duties are calculated based on the country of origin, HTS code and the retail value of the shipment.

Gifts, Samples & Special Cases

Q: What happens if I am shipping a package that contains items not for sale, such as sending a gift to an influencer?

A: If the items are from China (COO = CN) or Hong Kong (COO = HK), they can be shipped through our DDP solution as long as the retail value is declared, and you provide a valid Country of Origin (COO), Manufacturer Details, and HTS codes.

Q: What if the China origin shipment contains samples not for sale, where no purchase was made?

A: That’s fine, as long as you declare the retail value and provide the correct COO, manufacturer information, and HTS code. If retail value can’t be provided, we may have difficulty processing the shipment, as proper value declaration is required.

Q: What if the product is being sent as a sample? Will the value still be the sales price?

A: The retail value should be based on the original or regular-sized item. If there is no regular-sized item, we may not be able to process the shipment, as the sample would have no associated retail value.

Q: Would tariffs apply to China origin goods no matter if it’s a gift or sample, based on retail value?

A: Correct, tariffs will apply if the shipment is processed through our DDP solution for China origin goods. The tariff will be based on the declared COO and HTS code, regardless of whether it is a gift or sample.