Duty CalculationJune 16, 2026

Landed Cost Formula: Calculate Your True Import Cost (2026)

The price on your supplier's invoice is not what you actually pay to get those goods onto your warehouse shelf. The true cost — landed cost — includes import duty, CBP fees, freight, insurance, and brokerage. Here's the exact formula and a worked example with current 2026 rates.

The Landed Cost Formula
Landed Cost = Product Cost
+ Import Duty (CIF value × effective duty rate)
+ MPF (0.3464% of CIF, min $33.58, max $651.50)
+ HMF (0.125% of CIF — ocean only)
+ Ocean Freight
+ Insurance
+ Customs Brokerage
+ Inland Drayage

Each component explained

Import Duty
CIF value × effective duty rate

The tax charged by CBP on imported goods. The rate depends on your HTS code and country of origin. In 2026, the effective rate may include up to four stacking layers: MFN base rate + Section 301 (Chinese goods) + Section 122 (10% global surcharge) + Section 232 (steel/aluminum). FTA-qualifying goods may pay 0% instead of the MFN rate.

Merchandise Processing Fee (MPF)
0.3464% of CIF value · min $33.58 · max $651.50

A CBP fee on formal entries. It is capped at $651.50 per entry regardless of shipment value, which makes it relatively small on high-value shipments. Goods from USMCA (Canada, Mexico) and CAFTA-DR (Honduras, Guatemala, El Salvador, Nicaragua, Costa Rica, Dominican Republic) countries are typically MPF-exempt.

Harbor Maintenance Fee (HMF)
0.125% of CIF value — ocean shipments only

Charged on ocean imports only. Funds maintenance of US ports and harbors. No minimum or maximum cap — it scales linearly with shipment value. Air shipments are not subject to HMF.

Ocean Freight
Actual carrier cost

The cost to ship the container from the foreign port to the US port of entry. This is also part of the customs value (CIF) — meaning it indirectly affects your duty calculation too. Current rates from China to Miami range from $1,800–$4,500 per 20-foot container depending on season and carrier.

Insurance
Typically 0.3%–0.5% of cargo value

Cargo insurance for international shipments. Also part of the CIF customs value calculation. Most freight forwarders can arrange insurance or it can be purchased separately.

Customs Brokerage
$150–$500 per entry (typical)

Fees charged by your customs broker to prepare and file the entry summary with CBP. Rates vary by broker and complexity of the shipment. Some brokers charge flat fees, others charge based on entry lines.

Inland Drayage
Varies by port and distance

The cost to truck the container from the port terminal to your warehouse. At Port of Miami, drayage typically ranges from $450–$850 within Miami-Dade County, rising to $1,200–$2,000 for deliveries to Central Florida. At Port Everglades, similar rates apply for Broward and Palm Beach deliveries.

Worked example: 500 units of furniture from Vietnam

Let's work through a real example. 500 units of wooden furniture (HTS 9403.60.80) from Vietnam, arriving at Port of Miami. Invoice value: $40,000. Ocean freight: $2,400. Insurance: $180.

Landed Cost Calculation — Furniture from Vietnam (HTS 9403.60.80)
Invoice value (500 units × $80)
$40,000
Ocean freight (FCL, 20ft)
$2,400
Insurance (0.45%)
$180
CIF value (customs value)
$42,580
MFN base duty (HTS 9403.60.80 = Free)
0% — furniture is duty-free under MFN
$0
Section 301 (Vietnam — not applicable)
Section 301 applies to China only
$0
Section 122 (10% surcharge)
10% × $42,580 CIF
$4,258
Total import duty
$4,258
MPF (0.3464%)
0.3464% × $42,580 — within min/max range
$147.50
HMF (0.125%)
0.125% × $42,580
$53.23
Customs brokerage
Flat fee estimate
$285
Inland drayage (Miami → warehouse)
Miami-Dade delivery estimate
$620
Total landed cost
$47,613
Per-unit landed cost
vs. $80.00 invoice price
$95.23

Note on Section 122: This example applies the 10% Section 122 surcharge in effect as of May 2026. This surcharge applies to most countries, including Vietnam. The expiry date is approximately July 24, 2026. If Congress extends or replaces it, your effective rate will change — always check current rates before placing a PO.

How FTAs change the landed cost formula

Free trade agreements can significantly reduce landed cost by eliminating the MFN base duty and, in some cases, the MPF. USMCA (Canada and Mexico) and CAFTA-DR (Central America) are the most impactful for Florida importers:

Mexico (USMCA qualifying)0% base dutyMPF-exemptMust meet USMCA rules of origin
Canada (USMCA qualifying)0% base dutyMPF-exemptMust meet USMCA rules of origin
Honduras (CAFTA-DR)0% base dutyMPF-exemptMost manufactured goods
Colombia (CTPA)0% base dutyMPF-exemptMost manufactured goods
South Korea (KORUS)0% base dutyNot exemptMost manufactured goods
Vietnam (no FTA)MFN rateNot exemptSection 122 still applies
Calculate Your Landed Cost Automatically

Enter your HTS code and origin country — The Tariff Desk builds the full duty stack, calculates MPF and HMF, and gives you a per-unit landed cost estimate in seconds.