# China Sourcing Landed Cost Calculator

> Source: https://netray.co/tools/china-sourcing-landed-cost-calculator
> Publisher: Netray (netray.co), AI and integration engineering for ERP and manufacturing systems.
> Section: Free Tools

## Short answer

Build the true delivered cost per unit of a China FOB purchase, then test how a tariff change moves it.

## Category

supply-chain

## Erp

SAP / Oracle / Epicor / Infor

## Industry

Manufacturing

## Region

China

## Audience

- Buyer
- Procurement manager
- Supply chain planner

## Tool

**Kind:** calculator

**Currency:** $

**Inputs:**

#### FOB unit price

**Key:** fob_unit

**Type:** number

**Default:** 12.5

**Min:** 0

**Step:** 0.1

**Unit:** USD

#### Order quantity

**Key:** units

**Type:** number

**Default:** 10000

**Min:** 1

**Step:** 500

**Unit:** units

#### Ocean freight and origin charges

**Key:** freight

**Type:** number

**Default:** 3800

**Min:** 0

**Step:** 100

**Unit:** USD

#### Cargo insurance rate

**Key:** ins_rate

**Type:** number

**Default:** 0.3

**Min:** 0

**Step:** 0.05

**Unit:** %

**Help:** Charged on 110 percent of cost plus freight.

#### Total duty and tariff rate

**Key:** duty_rate

**Type:** slider

**Default:** 25

**Min:** 0

**Max:** 100

**Step:** 1

**Unit:** %

**Help:** Combine the base rate and any additional tariffs for your HTS code.

#### Merchandise processing fee rate

**Key:** mpf_rate

**Type:** number

**Default:** 0.3464

**Min:** 0

**Step:** 0.0001

**Unit:** %

**Help:** The actual fee has a minimum and maximum per entry.

#### Harbor maintenance fee rate

**Key:** hmf_rate

**Type:** number

**Default:** 0.125

**Min:** 0

**Step:** 0.005

**Unit:** %

#### Broker, drayage and handling

**Key:** broker

**Type:** number

**Default:** 900

**Min:** 0

**Step:** 50

**Unit:** USD

**Outputs:**

#### Goods value (FOB)

**Key:** goods

**Expr:** fob_unit * units

**Format:** currency

#### Insurance

**Key:** insurance

**Expr:** (goods + freight) * 1.1 * ins_rate / 100

**Format:** currency

#### Duty and tariff

**Key:** duty

**Expr:** goods * duty_rate / 100

**Format:** currency

**Description:** US customs value is generally the transaction value excluding international freight and insurance.

#### MPF plus HMF

**Key:** fees

**Expr:** goods * (mpf_rate + hmf_rate) / 100

**Format:** currency

#### Total landed cost

**Key:** landed

**Expr:** goods + freight + insurance + duty + fees + broker

**Format:** currency

**Primary:** true

#### Landed cost per unit

**Key:** landed_unit

**Expr:** landed / max(units, 1)

**Format:** currency

**Primary:** true

#### Uplift over FOB price

**Key:** uplift

**Expr:** (landed_unit / max(fob_unit, 0.0001) - 1) * 100

**Format:** percent

**Chart:**

#### Landed cost per unit vs duty rate

**Type:** line

**X:** duty_rate

**From:** 0

**To:** 100

**Steps:** 21

**Series:**

- landed_unit

**Disclaimer:** Estimate for planning. MPF and HMF have minimums and caps, rates change, and special programs or exclusions may apply. Confirm duty with your customs broker.

## Content

**Intro:** FOB price is only the start. Freight, insurance, duty, customs fees and brokerage can add a third or more to the cost, and tariff changes move it fast. This calculator builds landed cost per unit and lets you sweep the duty rate.

**Sections:**

#### How to use it

**Body:** Enter the FOB unit price, quantity, ocean freight, insurance rate and the combined duty rate for your HTS code. Add broker and drayage costs as a lump sum. The result is total landed cost, landed cost per unit and the uplift over FOB. Use the chart to see where a tariff increase makes a China source more expensive than a nearby supplier, then load the per-unit result into your ERP item cost or purchase price variance analysis.

#### The formulas

**Body:** Insurance is (goods plus freight) times 1.1 times the rate, following the usual 110 percent convention. Duty is customs value times the duty rate. In US imports customs value is generally FOB, not including international freight. MPF and HMF are percentages of value, with minimum and maximum limits per entry that this simple model does not apply.

**Bullets:**

- Landed = goods + freight + insurance + duty + MPF + HMF + broker
- Landed per unit = landed / units
- Uplift = landed per unit / FOB unit - 1

#### Common mistakes

**Body:** Buyers often quote a part against FOB price and ignore duty stacking. Section 301 style additional duties apply on top of base rates and differ by HTS code, so always use the current combined figure. Another mistake is dropping small orders into the model without the fixed fees, which makes small lots look cheaper. In SAP, Oracle, Epicor or Infor, model the cost elements as planned delivered cost components so purchase price variance reflects reality.

**Cta:** If you want landed cost components captured automatically in your ERP purchasing flow, we can help design the cost elements and reports.

**Faq:**

#### Is the duty applied to freight?

**Answer:** For US imports, customs value is generally the transaction value, which normally excludes international freight and insurance. Rules differ in other countries, such as CIF valuation in many markets, so confirm for your destination.

#### Can I use it for non-US destinations?

**Answer:** Partially. Replace MPF and HMF with zero, change the duty to your destination rate and add import VAT separately. Many countries value goods at CIF, so add freight and insurance to the duty base mentally.

#### How do I find the duty rate?

**Answer:** Classify the part under the Harmonized Tariff Schedule, then add any extra duties that apply to China-origin goods. A licensed customs broker can confirm the combined rate for your product.

#### Do MPF limits matter?

**Answer:** Yes for very small or very large entries because the fee is bounded by a minimum and maximum. For mid-size entries the percentage is a fair approximation. Check current limits at the customs authority.

## Search terms

china landed cost calculator, fob china to us landed cost, import duty calculator china, tariff impact calculator, landed cost per unit calculator, mpf hmf calculator, china sourcing cost model, total landed cost excel

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