Landed cost calculator for importing from China
The landed cost is everything it costs to get one unit from the factory in China to your door: the product, fees, freight, insurance, import duty, VAT and local delivery. Enter your figures below to see the total and the cost per unit.
Updated
Import VAT is usually 20%, charged on the value plus shipping, insurance and duty.
| Goods (FOB China) | US$4,000.00 |
|---|---|
| Sourcing agent fee | US$320.00 |
| Inspection | US$270.00 |
| Freight | US$900.00 |
| Cargo insurance | US$24.50 |
| Import duty (on CIF value) | US$196.98 |
| Import VAT / sales tax | US$1,024.30 |
| Customs broker and local delivery | US$250.00 |
An estimate only. Duty rates depend on your product's tariff code and can change; confirm them with your customs broker before you order.
How landed cost is worked out
- 1Goods value: unit price × quantity, usually quoted FOB China.
- 2Add the costs of buying: your sourcing agent's fee, samples and inspection.
- 3Add freight and cargo insurance. Goods + freight + insurance is the CIF value.
- 4Add import duty. Most countries charge it on the CIF value; the USA charges it on the goods value.
- 5Add import VAT or sales tax, usually charged on the CIF value plus duty.
- 6Add customs broker fees and delivery from the port to your warehouse.
- 7Divide the total by the number of units for the landed cost per unit.
Duty and VAT by destination
| Destination | Duty charged on | VAT / sales tax |
|---|---|---|
| United States | Goods value | None (plus customs fees and any extra tariffs on Chinese goods) |
| United Kingdom | CIF value | 20% on most goods |
| European Union | CIF value | About 17% to 27%, by country |
| United Arab Emirates | CIF value, mostly 5% | 5% |
| Saudi Arabia | CIF value, often 5% | 15% |
| Pakistan | CIF value, plus other duties | Sales tax, commonly 18% |
| Nigeria | CIF value, by tariff band | 7.5%, plus levies |
| Kenya | CIF value, by tariff band | 16%, plus levies |
Why landed cost matters
A product that's US$4 at the factory can easily cost US$6 or more by the time it reaches your shelf. On small orders, fixed costs such as inspection, broker fees and minimum freight charges add even more per unit. Working out the landed cost before you order tells you whether the margin is really there.
For more on agent fees, see our guide to what a China sourcing agent costs. For duties in specific markets, see our guides to shipping to the USA, UK and Europe.
Common questions
What is included in landed cost?
The product price, buying costs such as agent fees and inspection, freight, insurance, import duty, VAT or sales tax, customs broker fees and delivery to your door.
Is import duty charged on freight?
In most countries, yes: duty is charged on the CIF value, which includes freight and insurance. The USA is an exception and charges duty on the value of the goods.
How do I find my duty rate?
Find your product's tariff (HS) code and look it up in your country's official tariff, or ask your customs broker. Rates can differ a lot between similar products.