Landed cost is the total price of a product once it has arrived at your warehouse or distribution center. It includes every expense incurred from the moment the goods leave the supplier to the moment they are ready for sale or use: the product price, international freight, insurance, customs duties, taxes, broker fees, handling charges, and inland transportation. Knowing your true landed cost is essential for pricing, margin analysis, and sourcing decisions. Most importers underestimate landed cost by 15–30% when they only look at the FOB price.
Landed Cost = Product Cost (FOB) + International Freight + Insurance + Customs Duties + Taxes (VAT/GST) + Customs Broker Fee + MPF/HMF + Inland Transportation + Warehousing/Handling
You import 1,000 units of an electronic component from Shenzhen, China to Los Angeles. FOB price: $50,000. Ocean freight (40ft container): $4,200. Insurance (0.4% of CIF): $217. Customs duty (HTS 8542.39, 0% base + 25% Section 301): $13,610. MPF (0.3464% of $54,200): $188. HMF (0.125%): $68. Broker fee: $250. Drayage + inland trucking to warehouse: $1,100. Total landed cost: $69,633 — that is $69.63 per unit versus the $50 FOB price, a 39% increase.
Camtom calculates your full landed cost automatically — including duty rates, Section 301 surcharges, MPF, HMF, and FTA preferences — based on accurate HTS classification and country of origin. See your true per-unit cost before you place the order.
Want to know your real landed cost? Try Camtom's free tariff and duty calculator now or schedule a demo.
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