Everything you need to know about the true cost of importing goods into the United States.
Landed cost is the total expense of getting a product from a supplier’s factory to your warehouse, retail shelf, or customer’s doorstep. It goes far beyond the price you negotiate with your supplier. Landed cost encompasses every cost incurred from the moment a product is manufactured to the moment it clears customs and arrives at its final destination in the United States.
For any business that imports goods — whether you’re a solo Amazon FBA seller or a mid-market retailer sourcing from Asia — understanding landed cost is the difference between profitable pricing and losing money on every unit sold. Ignoring even a single component can erode margins by 5–15% on a typical shipment.
A complete landed cost calculation includes the following elements:
This is the base price you pay the supplier, usually quoted as FOB (Free on Board). It covers manufacturing, packaging, and inland transport to the port of origin. The FOB price is your starting point, but it is only the beginning.
Shipping costs vary dramatically depending on the mode of transport. Ocean freight (FCL or LCL) is cheapest per unit but slowest. Air freight costs 4–6x more but delivers in days instead of weeks. Land freight (truck or rail) applies to imports from Canada and Mexico under USMCA.
Marine cargo insurance typically costs 0.3–0.5% of the shipment value. While not legally required, it protects against loss, damage, and general average declarations. Skipping insurance on a $50,000 ocean shipment is a gamble most businesses cannot afford.
U.S. import duties are determined by two factors: the Harmonized Tariff Schedule (HTS) code of your product and its country of origin. The base MFN (Most Favored Nation) duty rate varies from 0% to over 25% depending on the product category. But in 2026, duties often stack across multiple layers:
A product with a 5% MFN rate from China could face an effective duty rate of 30% or higher when all layers are stacked.
The MPF is a U.S. Customs and Border Protection fee charged on all formal entries (shipments valued over $2,500). The rate is 0.3464% of the customs value, with a minimum of $31.67 and a maximum of $614.35 per entry. This fee applies regardless of the product type or country of origin.
The HMF is 0.125% of the customs value and applies exclusively to goods arriving by ocean vessel. Air and land shipments are exempt. Unlike MPF, there is no cap on HMF — on a $500,000 ocean shipment, HMF alone costs $625.
A licensed customs broker handles the paperwork for clearing your goods through CBP. Broker fees typically range from $150–$400 per entry for standard shipments, with additional charges for classifications, bonds, or ISF filings.
Depending on your shipment, you may also face bond premiums (single-entry or continuous), ISF filing fees ($25–50), container drayage from the port, warehouse handling, and examination fees if CBP selects your shipment for inspection.
Landed Cost = Product Value + Freight + Insurance + Customs Duty + MPF + HMF + Broker Fees + Other Fees
Let’s walk through a real example to see how costs stack up.
| Component | Amount |
|---|---|
| Product value (FOB Shenzhen, 500 units at $12) | $6,000.00 |
| Ocean freight (LCL) | $850.00 |
| Cargo insurance (0.4%) | $27.40 |
| Customs value (CIF) | $6,877.40 |
| MFN duty (3.9% — HTS 8518.40) | $268.22 |
| Section 301 tariff (25%) | $1,719.35 |
| MPF (0.3464%, min $31.67) | $31.67 |
| HMF (0.125%) | $8.60 |
| Customs broker fee | $185.00 |
| Total landed cost | $9,090.24 |
| Per-unit landed cost | $18.18 |
The FOB price was $12 per unit, but the true landed cost is $18.18 — a 51.5% increase. Pricing your product at $24.99 based on the $12 cost would give you a seemingly healthy margin, but after landed cost, your actual margin drops to just $6.81 per unit before domestic shipping, storage, and platform fees.
Most simple duty calculators show the duty rate and stop there. They completely miss MPF ($31.67–$614.35 per entry) and HMF (0.125% uncapped on ocean shipments). On high-value shipments, these “hidden” fees add up to hundreds of dollars.
In 2026, many products from China face the MFN rate plus Section 301 plus IEEPA tariffs. Using only the base HTS duty rate dramatically understates your actual duty liability.
An incorrect HS classification can mean overpaying duties by thousands of dollars — or worse, underpaying and facing penalties from CBP. AI-powered classification tools like the one in LandedCost help reduce misclassification risk.
Shipments valued under $800 enter the U.S. duty-free under Section 321 de minimis. However, this threshold may change, and it does not apply to goods subject to anti-dumping or countervailing duties.
If you sell on Amazon, Shopify, or any marketplace, your product pricing must account for the full landed cost — not just the supplier price. Businesses that calculate landed cost accurately can set competitive prices while maintaining healthy margins. Those that do not often discover they are losing money only after thousands of units have shipped.
The LandedCost calculator automates the entire landed cost calculation. Enter your product description, value, shipping cost, and country of origin. The tool uses AI to classify your HS code, looks up the applicable duty rate across all five tariff layers, adds MPF and HMF, and gives you a complete cost breakdown in seconds. The free tier includes 10 calculations per day — no credit card required.
Try the Free CalculatorLanded cost is the total price of a product once it has arrived at your door. It includes the product price, shipping, insurance, customs duties, Merchandise Processing Fee (MPF), Harbor Maintenance Fee (HMF), and any broker or handling fees.
Add up: product value + freight + insurance + customs duty (based on HS code and duty rate) + MPF (0.3464% of customs value) + HMF (0.125% for ocean) + broker fees. The LandedCost calculator automates this entire process.
MPF (Merchandise Processing Fee) is a U.S. Customs fee of 0.3464% of the customs value of your shipment, with a minimum of $31.67 and a maximum of $614.35 per entry.
HMF (Harbor Maintenance Fee) is 0.125% of the customs value, charged on goods arriving by ocean vessel. The importer of record pays it. Air and land shipments are exempt.
LandedCost by NormSuite is a free calculator that includes AI-powered HS code classification, all five tariff layers, MPF, HMF, and a full cost breakdown — features that most other calculators miss.