How import duty and landed cost are calculated
The total cost to import goods — your landed cost — includes much more than the supplier invoice price. Every US import entry goes through US Customs and Border Protection (CBP), which collects three types of import charges on top of the supplier price and logistics costs.
The four components of landed cost
- FOB price — what you pay the supplier. "Free On Board" means the supplier delivers the goods to the port of origin; you bear costs from that point.
- CIF value (dutiable basis) — FOB price plus international freight plus cargo insurance. Import duty is assessed on CIF value, not FOB alone.
- Import duty — the tariff rate for your product's Harmonized Tariff Schedule (HTS) code, applied to the CIF value. Look up your HTS code and rate at hts.usitc.gov. Rates range from 0% to 37.5% for most consumer goods; Section 301 tariffs on Chinese goods add 7.5–25% on top.
- CBP fees — two fees are assessed on nearly every formal entry:
- MPF (Merchandise Processing Fee): 0.3464% of FOB, with a minimum of $31.67 and a maximum of $614.35 per entry (2024 rates).
- HMF (Harbor Maintenance Fee): 0.125% of FOB, assessed on ocean and certain inland waterway shipments only.
US-side logistics charges
After CBP clearance, importers typically pay a customs broker fee ($150–$500 per entry), port destination charges and terminal handling fees ($200–$500), and drayage — trucking from the port to a warehouse or 3PL ($400–$1,200 depending on distance and port congestion). All of these are included in this calculator's landed cost total.
Per-unit cost
If you enter the number of units in the shipment, the calculator divides total landed cost by unit count to show the per-unit landed cost. This is the correct cost basis to use when pricing products for resale — not the supplier unit price.
HTS lookup
Your product's HTS (Harmonized Tariff Schedule) code determines the duty rate. Use the USITC's HTS online tool at hts.usitc.gov to find your 10-digit HTS code and the associated duty rate before completing a purchase order.
Sources
- US International Trade Commission — HTS Online Reference Tool (accessed 2026-10-25)
- CBP — Merchandise Processing Fee (MPF) (accessed 2026-10-25)
- CBP — Harbor Maintenance Fee (HMF) (accessed 2026-10-25)