Understanding U.S. Import Duties on Hand-Knotted Rugs from India
If you’re based in the United States and considering buying a handmade rug from India, here’s what you actually need to know about duties.
How Rugs Are Classified?
When your rug arrives in the U.S., Customs uses the Harmonized Tariff Schedule (HTS) to determine what duty applies. The classification depends on how the rug was made and what it’s made of:
- Wool hand-knotted rugs fall under HTS 5701.10.00
- Silk and other fine textile hand-knotted rugs (including Mulberry Silk) fall under HTS 5701.90.00
The distinction matters — hand-knotted rugs carry lower duty rates than hand-tufted or machine-made rugs, which is why correct classification is so important.
What You’ll Actually Pay in 2026?
Under normal U.S.–India trade relations, the base MFN (Most Favored Nation) duty on hand-knotted rugs from India is 0%.
However, as of 2025, the U.S. has introduced a 10% Section 122 surcharge on Indian goods, which currently applies to carpets as well. This surcharge is expected to expire around July 24, 2026, after which the effective duty should revert to 0%.
In practical terms, orders shipped and delivered before that date carry approximately 10% duty. Orders after that date may attract zero federal duty — though we always recommend confirming before placing large orders, as trade policy can shift.
Beyond federal duty, couriers like FedEx and DHL typically add a small Merchandise Processing Fee (MPF) and a courier handling charge at the time of import.
The Paperwork That Makes It Work
For your rug to clear U.S. Customs correctly — and to ensure it’s classified as hand-knotted rather than a higher-tariff category — we include the following with every shipment:
- Commercial Invoice — with the construction method, KPSI (Knots Per Square Inch), fiber composition, and declared value clearly stated
- Certificate of Origin — confirming the rug was woven in India
- Packing List — with dimensions, weight, and material details (e.g., Grade 6A Silk, Merino Wool)
We’ve been doing this for a long time. The paperwork is always complete, always compliant.
How Delivery Works — And Your Options
We ship via FedEx, DHL, or UPS. Standard shipments are sent on a DAP (Delivered At Place) basis — meaning we get your rug to your door, and you settle duties and import fees separately with the carrier at the point of clearance. The carriers will contact you directly when payment is due.
There are no hidden charges on our end. What you see on your invoice is what you pay us.
Need a completely landed price with no surprises?
For certain orders — larger purchases, institutional or trade buyers, or situations where a clean all-in cost matters — we can arrange DDP (Delivered Duty Paid) shipping upon request. Under DDP, all duties, taxes, and import fees are pre-calculated and included in your final invoice. Nothing is owed at the border. Your rug arrives without any problems.
DDP is not available for all orders and is offered at our discretion, depending on the destination, order value, and logistical feasibility. If this matters to you, just let us know when you enquire, and we’ll confirm whether it applies to your order.
A Note on Timing:
If your order will be shipped before July 24, 2026, budget for approximately 10% in import duty. If you’re ordering for delivery after that date and the Section 122 surcharge lapses as currently scheduled, you may pay zero federal duty — a meaningful saving on higher-value pieces.
We’ll always give you a clear picture of the likely duty position before we dispatch. No guesswork.
Any questions before you order? Just email us – we will respond with 24 hours on a business day.
