Section 301 Forced Labor Duties: Rates by Country for Asia Sourcing in 2026

Section 301 forced labor duties added 10% or 12.5% to imports from 60 economies on July 24, 2026. China, Vietnam, Thailand and the Philippines pay 12.5%. India, Bangladesh, Indonesia, Cambodia, Malaysia and Pakistan pay 10%. The gap is only 2.5 points, so it rarely justifies moving a factory on its own.

If you source from Asia, this duty now sits on top of your normal duty and any older China tariffs. At Eastern Plays, we write for Western importers who check the numbers before they wire a deposit. This guide shows the rates by country, how stacking works, which goods escape the duty, and what to ask your supplier and broker before the next purchase order.

What Is the Section 301 Forced Labor Duty?

The Section 301 forced labor duty is an extra tariff the Office of the U.S. Trade Representative (USTR) placed on 60 trading partners. It applies to goods entered for consumption on or after 12:01 a.m. ET on July 24, 2026. Rates depend on the partner country, and the duty is charged on top of the regular tariff.

The USTR runs its actions under Section 301 of the Trade Act of 1974. U.S. Customs and Border Protection (CBP) explained the filing rules in CSMS message 69326983. That bulletin is the best single source for the heading numbers your broker will use.

The duty replaced a temporary 10% Section 122 surcharge that ran from February 24 to July 24, 2026. For China-origin goods that were paying the surcharge, the net increase is about 2.5 points. For goods from countries that now pay 10%, the change was close to zero.

Which Asian Countries Pay 10% and Which Pay 12.5%?

China, Vietnam, Thailand and the Philippines pay 12.5%. India, Bangladesh, Indonesia, Cambodia, Malaysia and Pakistan pay 10%. Taiwan, South Korea and Japan have a blended structure that adds duty only when the normal rate falls below a set level.

The table below uses the CBP bulletin's headings for the main sourcing countries in Asia.

Taiwan pays nothing extra if its normal rate is already 10% or higher, and a combined 10% otherwise. South Korea and Japan work the same way with a 12.5% threshold. Always confirm the heading for your product in the CBP attachment before you file.

How Does the Duty Stack With Your Other Tariffs?

The new duty is additional to your normal Most Favored Nation (MFN) duty and to any older Section 301 duties on China. It does not replace them. Goods covered by Section 232 tariffs, such as steel, aluminum, copper and their derivatives, generally escape the new duty.

Here is a worked example. Say your product has a 5% MFN duty and a customs value of $10,000. The customs value is generally the price paid for the goods, without international freight.

The gap between a 12.5% country and a 10% country is $250 on a $10,000 order. That is real money on thin margins. But it is smaller than the gap between a good factory and a bad one, which shows up in rework and missed delivery dates.

The bigger swing comes from the older China tariffs. If your product sits on one of the original 25% lists, the stacked rate reaches 42.5% in this example. That is the situation where moving production can change the math.

Which Goods Are Exempt From the Forced Labor Duty?

Several categories are exempt. The CBP bulletin lists civil aircraft, pharmaceuticals, donations, informational materials and goods covered by certain Section 232 actions. It also exempts qualifying goods from Canada and Mexico under USMCA and textiles under CAFTA-DR.

A narrow in-transit rule also applied. Goods loaded on their final mode of transport before July 24 and entered before 12:01 a.m. on July 28 escaped the duty. That window has closed, but it matters if you are checking old entries or a refund claim.

Check your product against the exemption headings with your broker before you assume it qualifies. Our guide on finding your HTS code and asking CBP for a binding ruling shows how to lock in your classification. A wrong code can change both your duty and your exemption status.

If you source furniture, cabinets or wood products, read our Section 232 sourcing calendar. Those goods follow a separate tariff path.

Who Pays the Duty: You or Your Supplier?

Your Incoterm decides who pays the duty in practice. Under FOB or EXW terms, the importer of record pays duty at the U.S. border. Under DDP terms, the seller says it will deliver with duty paid, and bakes the cost into the price.

The DDP quotes deserve extra care. Some trading companies priced DDP deals before July 24 and may try to reopen them. Others may quietly ship under a lower value to cut the duty. Undervaluation puts you, as the importer of record, at risk of penalties, so keep the commercial invoice honest.

Ask your supplier to show the invoice value, the freight and the origin on separate lines. That makes it easier to defend your entry if CBP asks questions. It also makes price comparisons between quotes cleaner.

Should You Move Production Because of This Duty?

Most importers should not move production over a 2.5-point gap. Moving costs include tooling, new quality audits, longer lead times and the risk of a weaker factory. Switch only if the full landed cost clearly improves after you count all of those.

Origin rules also limit the benefit. Duty depends on where the goods are made, not where they ship from. Our piece on China plus one and Vietnam factory vetting covers how to confirm that a supplier really makes the product where it says it does.

The rates may also change. The USTR can adjust them, and trade talks continue. Build your costing sheet so the duty rate is one input you can update in a minute.

Common Mistakes to Avoid

Three errors show up again and again when a new duty arrives. Importers use last quarter's rate in their costing sheet. They assume a Vietnam-shipped product is Vietnam-origin without proof. And they forget that the duty applies to each line of an entry, not to the shipment as a whole.

Fixing these takes an afternoon, and it protects your margin on every order that follows.

A Quick Landed-Cost Reality Check

Duty is only one line in your landed cost. Freight, insurance, brokerage, port fees and inland delivery all sit beside it. A 2.5-point duty gap on a $10,000 order is $250. A single missed sailing or a failed inspection can cost far more.

That is why we suggest ranking suppliers on total landed cost and reliability, not on duty alone. A factory that ships on time at 12.5% can beat a factory that slips two weeks at 10%. Put both in the same spreadsheet and let the numbers settle it.

A Short Checklist Before Your Next Order

Use the checklist below to update your costing and your paperwork. Each item takes a short call or email.

The U.S. International Trade Commission's HTS search lets you look up MFN rates and Chapter 99 notes yourself. A quick check before you speak to your broker helps you ask better questions. The Eastern Plays editors checked the figures in this guide against the CBP bulletin as of October 23, 2026.

What to Watch Next

Two things can change your numbers. The first is any new tariff deal between the U.S. and a sourcing country, which can reduce or reshape rates. The second is CBP guidance that clarifies how the duty applies to specific products.

For now, treat the duty as part of your cost base. Quote your customers with it included, and keep supplier prices honest by asking for origin proof. This article is general information, not customs or legal advice, so confirm entries with a licensed customs broker.