The formula
Landed cost = FOB price + ocean/air freight + insurance + US duties and fees + customs brokerage + port and trucking charges + warehouse receiving. Divide by units to get the real unit cost that your margin must cover.
1. Freight
FCL (full container) rates are quoted per container; LCL per cubic meter (with a minimum of 1–2 CBM). Air freight is quoted per kg on the greater of actual or volumetric weight (L×W×H cm ÷ 6000). Ask the forwarder for an all-in quote including origin handling, documentation, destination terminal handling and delivery order fees — these can add 30–50% on top of the base ocean rate for LCL.
2. Duties
Look up the 10-digit HTS code and apply: the general (MFN) rate; Section 301 additional tariffs on Chinese origin goods (lists 1–4, commonly 7.5% or 25%, with periodic changes); any Section 232 (steel/aluminium) or AD/CVD orders for specific products. Duties are calculated on the customs value, usually the FOB price. Request a binding ruling from CBP if the classification is unclear.
3. Fees
Merchandise Processing Fee: 0.3464% of value (min/max apply). Harbor Maintenance Fee: 0.125% for ocean shipments. Customs bond: single-entry or an annual continuous bond (about US$500/year) required for commercial imports.
4. Brokerage and inland
Customs brokerage US$100–200 per entry plus ISF filing (US$30–50; required 24 hours before loading in China). Drayage from port to warehouse is quoted per container; chassis and detention charges accrue if the container sits.
5. Hidden costs
- Pre-shipment inspection: US$250–350.
- Product testing and certification: often US$500–5,000 per SKU, amortised.
- Samples and courier: US$50–300.
- Currency: Chinese suppliers quote in USD but adjust when RMB moves; agree a validity period on quotes.
Example
1,000 LED work lights, FOB Shenzhen US$12 each = US$12,000. LCL freight 6 CBM at US$110 + fees US$600 = US$1,260. Duty: MFN 3.9% + Section 301 25% = US$3,468. MPF/HMF US$57. Broker + ISF US$180. Inspection US$300. Trucking US$350. Landed total ≈ US$17,615, or US$17.62 per unit — 47% above the factory price.