Landed Cost from China: How to Calculate It Before You Pay
By Hasan Olwan, in Yiwu since 2009 · Last updated: November 5, 2026
The short answer: landed cost from China is everything you pay to get goods from the supplier to your agreed delivery point, ready to sell. Add product cost, China-side charges, inspection, freight, insurance, duties, import taxes, clearance and local delivery. Then divide by the units you can actually sell. That number, not the factory price or the freight quote, tells you if the order makes sense.
A low factory price can hide a bad deal. So can a low freight rate. The question to ask isn’t “how much is shipping?” It’s “what will each sellable unit cost me once it’s in my warehouse?”
This guide lists each cost, shows how customs value differs in the US, Canada, the UK and Australia, and gives you a template to fill in with your own quotes. We don’t give you average percentages here, because they would be guesses. Duty depends on your product and your country. This is general information, so confirm duties with your customs authority or broker before you commit money.
The landed cost formula
Landed cost = goods + China-side costs + inspection + freight and insurance + duties and taxes + clearance and local delivery
Landed cost per unit = total landed cost ÷ sellable units
Not every line applies to every shipment. Some suppliers include trucking to the port, and some freight quotes stop at the port of arrival. That’s why you need to name the delivery point first: a port, a forwarder’s warehouse, or your own door. Without it, you can’t compare two quotes fairly.
The costs to include
1. Goods and order setup
Start with the invoice value of the products. Then add what applies to your order: samples, sample shipping, logo printing, custom packaging and labels. Check that the quote states quantity, specifications, unit price, currency and payment terms.
If you use a sourcing agent, add the fee. Ours is on our pricing page: 4% of the goods value on orders up to $50,000, with a minimum fee of $150. Also check for bank fees, since each transfer can add a charge.
2. China-side transport and consolidation
If your goods come from several suppliers, they may need to travel to a warehouse before export. That can mean receiving, sorting, storage and repacking charges. Ask for each one, and don’t assume it’s included in the freight rate. Our guide to consolidating shipments explains how this works.
3. Inspection
An inspection adds a cost before shipping, but it’s your last practical chance to catch a problem while the goods are still in China. We charge $200 per man-day for quality inspection. Write down what will be checked and what counts as a failure, since an inspection is a sample check and not a guarantee on every unit.
4. Freight and insurance
The price depends on the mode, weight and volume, route, season and what the service includes. Keep the international freight separate from origin and destination charges, so you can see what you’re really paying for. Our CBM calculator gives you the volume you’ll need for a quote.
Insurance is its own line unless the quote says it’s included, and even then you should read what it covers. See what cargo insurance covers.
5. Duties and import taxes
Duty depends on the product’s tariff classification and its country of origin, so don’t borrow a rate from another product. Your rate may also be calculated on a different value than you expect, which the next section covers.
6. Clearance and local delivery
Add the customs broker, port or terminal charges, container handling, and trucking to your warehouse. Then plan for delays. In the US, CBP says goods not cleared within 15 days of arrival can be moved to a warehouse at your cost.
7. The unit count
Divide by units you can sell, not units you ordered. If some arrive damaged or short, your real cost per unit goes up.
Why customs value differs by country
Two importers can pay the same invoice and freight and still have a different base for duty. Customs authorities don’t all treat freight the same way.
| Market | Duty is generally based on | Tax or fee on top |
|---|---|---|
| US | The price paid for the goods with certain additions. CBP’s guide lists international transport and insurance among the exclusions | Check the merchandise processing fee and, for ocean cargo, the harbor maintenance fee |
| Canada | The price paid, with adjustments. CBSA’s handbook adds transport and insurance to the place of direct shipment | GST on value for duty plus duty |
| UK | Customs value includes transport and insurance up to the UK border | Import VAT on customs value, duty and costs to the first UK destination |
| Australia | The FOB amount in most cases | 10% GST on customs value, transport, insurance and duty |
Canada’s border agency publishes a worked example you can follow. On goods valued at US$100, with an exchange rate of 1.37, 4% duty and 5% GST, the CBSA calculation reaches CA$12.60 in duty and GST. Those figures only illustrate the method. Your rate depends on your product.
This table is a planning tool, not a customs ruling. Valuation has exceptions, and your broker should confirm how it applies to your shipment.
Two US changes to include in your numbers
There’s no $800 duty-free route anymore. CBP’s FAQ, last modified in September 2026, says the suspension of the de minimis exemption applies to products of all countries, and that all applicable duties, taxes and fees must be paid on low-value shipments. Don’t build a budget on an old assumption about small parcels.
Check China-specific duties. The US has Section 301 tariff actions on China, and US trade measures have changed often. Ask your broker for the total rate on your exact tariff code, on the date you plan to import. Don’t rely on an article, including this one, for a rate.
How to calculate it, step by step
- Get the supplier’s data: unit price, quantity, carton count, carton dimensions, gross weight and packing type.
- Name both ends: the city or port in China, and your delivery point.
- Fix the shipping term. Write it out with a place, such as “FOB Ningbo, Incoterms 2020”. Read FOB vs CIF vs DDP if you’re unsure which fits.
- Ask for matching quotes: same route, same delivery point, same scope, with origin, freight, destination and delivery charges listed separately.
- Check duty and compliance: tariff code, duty rate, import taxes, and any certificates your product needs.
- Add what the quote leaves out: inspection, insurance, storage, clearance or trucking.
- Divide by sellable units.
A template you can fill in
Use your written quotes. Don’t put in general estimates where an official rate or quote belongs.
| Cost line | Your amount |
|---|---|
| Products, samples and packaging | |
| Sourcing agent fee and bank fees | |
| Transport and consolidation in China | |
| Inspection and documents | |
| International freight | |
| Insurance | |
| Duties and import taxes | |
| Port charges and customs clearance | |
| Delivery to your warehouse and any storage | |
| Total landed cost | |
| Sellable units | |
| Landed cost per unit | Total ÷ units |
Once you have the per-unit number, compare it to your selling price, then take off your selling costs, such as advertising, marketplace fees, returns and storage. The gap between your selling price and the factory price isn’t your profit.
Why two quotes for the same goods differ
- Weight and volume: carton size and actual weight both affect the bill, and the billing method changes by mode.
- Product type: some goods need special handling, documents or import requirements.
- Route and delivery point: ports and final addresses change the options and charges.
- Timing and capacity: freight rates move, and a quote has an expiry date.
- Scope: one quote may stop at the port, while another reaches your door.
- Shipping term: an FOB number and a DDP number don’t cover the same costs.
Mode changes the math too. In a shared container, you pay for the space you use, but handling at each end should appear in the quote. With a full container, you pay for the box even if you don’t fill it. So compare both at your delivery point, not by the freight rate alone.
When a DDP quote makes this easier
With DDP, one price covers freight, clearance, duties and delivery, so most of the template collapses into one line. Our DDP shipping reaches the US, Canada, the UK, Australia, Mexico and Brazil. The price is based on the duty rates in force when we quote. If a destination country changes its rates before your goods clear customs, the difference is adjusted, and we tell you as soon as we know.
DDP doesn’t replace the rest of the template. You still add product cost, the agent fee, inspection and your selling costs. Ask what’s included, and compare it against your own FOB calculation.
Common mistakes
- Comparing base freight rates without port, handling and clearance charges
- Asking for a quote before you have carton dimensions and weights
- Using another product’s duty rate as an estimate
- Assuming a price that includes shipping also includes duty. CBP warns that it usually doesn’t
- Leaving out inspection, insurance and storage
- Writing a shipping term with no named place
- Dividing by units ordered instead of units you can sell
Frequently asked questions
What is landed cost?
It’s the total cost of getting goods from your supplier to your agreed delivery point, including product cost, freight, insurance, duties, taxes, clearance and delivery.
Is shipping cost the same as landed cost?
No. Freight is one part of it. Landed cost also includes the goods, China-side charges, inspection, insurance, duties, taxes, clearance and local delivery.
How much does it cost to import from China?
There’s no single figure, because it depends on your product, quantity, route, delivery point and country. Get written quotes and fill in the template above.
Do import duties differ by product?
Yes. Duty depends on the tariff classification and the country of origin, and each country sets its own rates. Check your exact code with your customs authority or a broker.
Is a calculator estimate a final cost?
No. Our CBM calculator helps with volume and container fill. Your final cost depends on the actual shipment data, the written quote and the duty in force when your goods clear.
Summary
- Landed cost covers everything until the goods are ready to sell.
- Name your delivery point before you compare quotes.
- Customs value differs by country, so don’t copy a calculation across markets.
- Confirm duty on your exact tariff code and date.
- Divide by sellable units, and take off selling costs before you count profit.
Want real numbers for your order? Send us your product, quantity and destination, and we’ll quote the supplier and shipping side.