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How to calculate landed cost from China: a worked example

Compare product, freight, duty and local fees with an illustrative calculation, before choosing a supplier.

Published October 27, 2026

Use a complete, comparable quote

Landed cost is the purchase cost plus the relevant costs of getting goods to the destination. Depending on the agreement, these can include international freight, insurance, customs duties, taxes, brokerage and local delivery. Use the same delivery address and quantities for each supplier.

Illustration only: 100 units at USD 4 each cost USD 400. Add USD 100 freight, USD 30 in hypothetical duty and USD 20 in handling, for USD 550 total, or USD 5.50 per unit. These are invented figures to explain the arithmetic, not current tariff rates or a quotation.

Keep assumptions visible

The customs value and tax base may differ from this simplified example. Ask a broker to check classification, origin, valuation and actual charges. Separate recoverable taxes only where your accountant confirms they are recoverable.

Include inspection, sample and expected defect costs when comparing alternatives. If a quote leaves customs or local delivery unclear, obtain the missing figures before treating it as cheaper.

Rules, carrier charges and marketplace terms can change. Check the current requirements for your product and destination before payment.

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