How to Calculate Landed Cost From China to USA in 2026

As of 2026-04-21, the practical landed-cost formula for a China-to-U.S. import is: FOB product cost + international freight + cargo insurance + customs duty + Section 301 duty (if applicable) + Merchandise Processing Fee (MPF) + Harbor Maintenance Fee (HMF, ocean only) + broker/admin fees + final-mile delivery. A simple worked example is a $10,000 FOB shipment that adds $1,200 freight, $50 insurance, $2,500 in Section 301 duty, $47.14 in CBP fees, $52.50 in broker processing, and $600 for domestic delivery, producing an estimated landed cost of $14,449.64 before storage, exams, or demurrage.

TL;DR

• Landed cost is not the supplier invoice amount; it is the all-in cost to move goods from the factory gate in China to your warehouse in the United States.
• CBP's current published formal-entry MPF is 0.3464% of entered value, with a $33.58 minimum and $651.50 maximum, and HMF is 0.125% ad valorem on ocean imports.
• Section 301 still stacks on top of the normal HTS duty rate, so two products with the same freight bill can land at very different unit economics.
• Freightos's 2026-02-10 market update showed Asia-U.S. West Coast ocean rates at $1,916/FEU, Asia-U.S. East Coast at $3,457/FEU, and China-North America air rates above $7.30/kg, so freight assumptions need a date stamp.
• Use the full landed cost calculator for the estimate, and use the drug tariff lookup if the shipment is a pharmaceutical or API case rather than general merchandise.

What is landed cost and why it matters

Landed cost is the total cost of imported goods by the time they clear U.S. Customs and Border Protection and arrive at your warehouse. For pricing and margin control, it is the number that matters, not the supplier's ex-factory or FOB quote.

CBP's customs-value framework and your business-costing model are not the same thing. CBP generally values the merchandise itself, while your landed-cost model still has to add freight, insurance, broker processing, and inland delivery after duty and fees are calculated.

That distinction matters most on China-origin shipments because Section 301 can change the unit economics quickly. A low-duty HTS line can still become expensive once the China-specific surcharge, MPF, HMF, and domestic delivery are added, which is why the TariffCheck tool starts with HTS and origin first.

The landed cost formula, component by component

Use this working formula:

Landed cost = FOB cost + freight + insurance + HTS duty + Section 301 + MPF + HMF + broker/admin fees + bond (if needed) + last-mile delivery

The table below separates the major components so you can see which charges are government-imposed, which are market-priced, and which only appear on certain shipment types.

Component	Who charges	Typical rate	When paid
FOB product cost	Supplier	Invoice amount	Before production or before shipment, depending on terms
International freight	Carrier or freight forwarder	Freightos 2026-02-10 benchmark: Asia-U.S. West Coast $1,916/FEU, Asia-U.S. East Coast $3,457/FEU; China-North America air >$7.30/kg	At booking, before release, or per carrier credit terms
Cargo insurance	Insurer, carrier, or forwarder	Quoted per shipment or as a small percentage of insured value	Before departure or on freight invoice
HTS Column 1-General duty	CBP using the HTS rate	Varies by subheading; many lines are Free, others are ad valorem, specific, or compound rates	At customs entry
Section 301 additional duty	CBP under USTR action	Commonly 7.5%, 25%, 50%, or 100%, depending on the tariff line and action	At customs entry
Merchandise Processing Fee (MPF)	CBP	0.3464% of entered value, $33.58 minimum, $651.50 maximum	At customs entry
Harbor Maintenance Fee (HMF)	CBP	0.125% ad valorem on ocean imports	At customs entry
Broker entry and disbursement	Customs broker or express carrier	DHL U.S. benchmark: $35.00 Non-Routine Entry plus $17.50 or 2% Duty Tax Processing, if higher	At clearance or on post-clearance invoice
Bond if you do not already have one	Surety or broker	DHL benchmark: single-transaction bond 5 USD per 1,000 USD of bond, $50 minimum; continuous bond $525 minimum	Before or at formal entry
Last-mile delivery, drayage, warehouse receiving	Trucker, 3PL, warehouse, or forwarder	Quoted per lane and shipment; not a customs fee	After cargo release and before inventory receipt

The key takeaway is simple: duty and CBP fees are rule-based, while freight and service charges are market-based. You need both sides to get to a usable landed-cost number.

Step-by-step: calculate landed cost for a $10,000 order from China

For the example below, assume a formal ocean entry, 2,000 units, FOB unit cost of $5.00, and an HTS line that is Free under Column 1-General but still carries an additional 25% Section 301 duty. That mix is illustrative, not universal.

1. Confirm the commercial term and invoice value. Start with the FOB merchandise amount. In this example, 2,000 x $5.00 = $10,000.
2. Identify the HTS code and base duty rate. Check the ten-digit HTS line before adding any China-specific surcharge. Here, assume the base duty is Free, so duty is $0.
3. Check whether Section 301 applies. Use country of origin, not shipping route. In the example, 25% x $10,000 = $2,500.
4. Add freight and insurance. Use a dated quote. Here, freight is $1,200 and insurance is $50.
5. Calculate MPF and HMF. MPF is 0.3464% x $10,000 = $34.64, and HMF is 0.125% x $10,000 = $12.50.
6. Add broker and clearance administration. Using DHL's benchmark, $35.00 + $17.50 = $52.50; add bond cost here too if needed.
7. Add inland delivery. Include domestic trucking or drayage after customs release. The example uses $600.
8. Sum the shipment and convert to per-unit cost. The total is $14,449.64, and the landed cost is about $7.22 per unit on 2,000 units; confirm the final number in the calculator.

Worked example: 2,000 units of consumer electronics

Here is the same shipment written as a simple cost sheet.

Line item	Calculation	Amount
Units	—	2,000
FOB unit cost	—	$5.00
Total FOB product cost	2,000 x $5.00	$10,000.00
Ocean freight	Assumed current shipment quote	$1,200.00
Cargo insurance	Assumed shipment quote	$50.00
HTS Column 1-General duty	0% x $10,000	$0.00
Section 301 duty	25% x $10,000	$2,500.00
MPF	0.3464% x $10,000	$34.64
HMF	0.125% x $10,000	$12.50
Broker/admin fees	$35.00 + $17.50	$52.50
Last-mile delivery	Assumed domestic transport	$600.00
Total landed cost	—	$14,449.64
Landed cost per unit	$14,449.64 / 2,000	$7.22

This example shows why "free duty" does not mean "cheap to import." Even with a 0% general duty rate, the China-origin surcharge and non-product costs lift the unit cost from $5.00 to $7.22, a 44.5% increase over FOB. If the import is a finished drug or API rather than standard merchandise, cross-check the drug tariff lookup before using a generic electronics-style model.

Common mistakes importers make

• Treating the supplier's Alibaba or factory quote as the final cost even when the quote is only EXW or FOB.
• Looking up the HTS number but forgetting to layer Section 301 on top of the normal duty rate for China-origin goods.
• Applying a stale freight rate from last quarter instead of using a dated market benchmark or carrier quote.
• Ignoring broker disbursement, bond, and inland delivery because they do not appear on the CBP entry summary.
• Pricing by shipment total instead of converting the final landed cost to a per-unit number before setting wholesale or retail margins.

Frequently Asked Questions

What is included in landed cost from China?

For a U.S. importer, landed cost usually includes the FOB merchandise value, international freight, cargo insurance, HTS duty, any Section 301 additional duty, MPF, HMF on ocean freight, broker or carrier processing, and inland delivery to your warehouse. If the shipment is a pharmaceutical import, check the drug tariff lookup too because the tariff logic can differ from the standard China-import workflow.

Does landed cost include tariff surcharges?

Yes. If your product is subject to a China-specific surcharge such as Section 301, it belongs inside the landed-cost model because CBP collects it at entry just like the base duty.

How do I estimate Section 301 tariffs specifically?

Determine the HTS code, confirm that the country of origin is China, then check the current USTR action, any modifications, and any active exclusions before applying the additional duty rate to entered value.

Are Alibaba's quoted prices landed or FOB?

Usually not. Many marketplace listings show ex-factory, FOB, or loosely described unit pricing and exclude U.S. duty, Section 301, brokerage, port handling, and domestic delivery.

What is a typical customs broker fee for a $10K shipment?

There is no single CBP-mandated broker fee, because the government sets the customs fees, not the broker's commercial pricing. As one current primary-source benchmark, DHL's U.S. customs-services page lists $35.00 for Non-Routine Entry and $17.50 or 2% of the fiscal charge for Duty Tax Processing, if higher.

Do DDP shipments include all landed cost items?

DDP is supposed to include delivery, import clearance, duties, and taxes to the named destination, but buyers still need the written breakdown. Storage, exams, demurrage, and post-entry duty adjustments can still change the final number.

Sources

• Source: U.S. Customs and Border Protection — User Fee Table, accessed 2026-04-21
• Source: U.S. Customs and Border Protection — Importing into the United States, rev. 2006 PDF, accessed 2026-04-21
• Source: United States Trade Representative — USTR Finalizes Action on China Tariffs Following Statutory Four-Year Review, 2024-09-13
• Source: United States International Trade Commission — What do all the columns mean?, accessed 2026-04-21
• Source: Freightos — Transpac ocean rates slide early; Carrier revenue slipping as fleet grows, 2026-02-10
• Source: DHL Express — Customs Services, accessed 2026-04-21