China Sourcing Landed Cost Calculator
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.
Your numbers
Charged on 110 percent of cost plus freight.
Combine the base rate and any additional tariffs for your HTS code.
The actual fee has a minimum and maximum per entry.
Your results
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.
Landed cost per unit vs duty rate
Sweeps Total duty and tariff rate from 0 to 100, holding your other inputs fixed.
Landed cost in your ERP
Optional: we can help set up delivered cost components and variance reporting in your ERP.
Optional. The tool and every export work without this. No spam.
How to use it
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
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.
- Landed = goods + freight + insurance + duty + MPF + HMF + broker
- Landed per unit = landed / units
- Uplift = landed per unit / FOB unit - 1
Common mistakes
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.
Frequently Asked Questions
Is the duty applied to freight?
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?
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?
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?
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.
If you want landed cost components captured automatically in your ERP purchasing flow, we can help design the cost elements and reports.
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