Calculate landed cost from China in 2026: EXW unit price + agent fee + QC + DDP freight + duty + MPF. Full formula, real example, and free calculator.
For Amazon FBA sellers, retailers, and wholesale importers sourcing from China in 2026, the gap between a supplier's quoted EXW unit price and your true per-unit cost can be 40-200%. Landed cost — the total delivered cost per unit to your warehouse — is the only number that matters for pricing, profitability, and duty compliance. This guide gives you the exact 2026 formula, a fully worked example, and the hidden cost components most buyers miss.
Landed cost from China equals the EXW unit price plus sourcing agent fee, QC inspection, inland freight, export fees, international freight, insurance, customs duty, MPF (0.3464%, min $31.67), HMF (0.125%), and brokerage, divided by units shipped. In 2026, US Section 301 tariffs of 7.5-25% apply, and de minimis ended May 2, 2025.
What Is Landed Cost?
Landed cost (also called total landed cost or landed cost per unit) is the complete cost of getting a product from a Chinese factory to your warehouse door, divided by the number of units received. It captures every dollar spent: the ex-works (EXW) unit price, sourcing agent commission, quality control inspection, freight, insurance, customs duty, port handling, and brokerage. Buyers who price only on the Alibaba or Made-in-China unit price consistently underestimate true cost by 40-200% and erode their margins without realizing it.
Understanding landed cost is essential because it is the foundation of every pricing, sourcing, and profitability decision. If your landed cost per unit is $7.50 but you assumed $5.00 based on the EXW quote, your gross margin calculation is off by 50% — and you may be selling at a loss without knowing it. Landed cost is also the number customs authorities and accountants use to value your imports for duty and tax purposes.
The Landed Cost Formula Explained
The total landed cost formula sums every line item from the factory gate to your warehouse, then divides by the number of units shipped:
Landed Cost per Unit = (Unit Price × Qty + Sourcing Agent Fee + QC Inspection + Inland Freight + Export/Origin Fees + International Freight + Insurance + Customs Duty + MPF + HMF + Brokerage + Last-Mile Delivery) ÷ Units Shipped
Here is what each component means and its typical 2026 range when sourcing from China:
- Unit Price (EXW): The factory-gate price quoted by the supplier. EXW (Ex Works) means you bear all downstream costs from the factory onward.
- Sourcing Agent Fee: 3-8% of order value (tiered by volume) or a flat $90-$500 for small orders. Covers supplier discovery, negotiation, and order management.
- QC Inspection: $80-$300 per man-day at AQL 2.5 standard. Most orders need 1-2 man-days depending on quantity and complexity.
- Inland China Freight: $50-$300 trucking from factory to the export port (Shanghai, Ningbo, Shenzhen, or Guangzhou).
- Export/Origin Fees: $80-$200 for customs declaration, documentation, and port handling at origin.
- International Freight: $2-$15/kg by air express (DHL, FedEx, UPS); $1.50-$5/kg by sea DDP; or $800-$2,500 per LCL or 20ft container.
- Insurance: 0.1-0.3% of cargo value (CIF typically covers 110% of invoice value).
- Customs Duty: 0-25% based on HTS/HS code and country of origin. China-origin goods face Section 301 tariffs of 7.5-25% on top of base duty (per USTR lists).
- MPF (Merchandise Processing Fee): 0.3464% of FOB value, minimum $31.67, maximum $614.35 (US CBP 2026 rate).
- HMF (Harbor Maintenance Fee): 0.125% of cargo value for ocean imports into the US.
- Brokerage: $50-$175 per entry for customs clearance by a licensed customs broker.
- Last-Mile Delivery: $50-$400 from destination port or airport to your warehouse.
| Cost Component | Typical Range (2026) | Notes |
|---|---|---|
| Unit price (EXW) | $0.50 - $50+ | Factory-gate price; depends on product and volume |
| Sourcing agent fee | 3% - 8% | Tiered by order value; flat fee for small orders |
| QC inspection | $80 - $300/man-day | AQL 2.5 standard; 1-2 man-days typical |
| Inland China freight | $50 - $300 | Factory to export port trucking |
| Export/origin fees | $80 - $200 | Declaration, docs, port handling |
| Freight (DDP, sea) | $1.50 - $5/kg | $800-$2,500 per LCL/20ft container |
| Freight (DDP, air) | $2 - $15/kg | DHL, FedEx, UPS express |
| Insurance | 0.1% - 0.3% | Of cargo value; CIF 110% of invoice |
| Customs duty (base) | 0% - 25% | By HTS code; check HTS.usitc.gov |
| Section 301 tariff | 7.5% - 25% | Additional, per HTS code (USTR) |
| MPF (US CBP) | 0.3464% min $31.67 | Max $614.35; on every formal entry |
| HMF (US, ocean) | 0.125% | Of cargo value; ocean shipments only |
| Brokerage | $50 - $175/entry | Licensed customs broker clearance |
| Last-mile delivery | $50 - $400 | Destination port to your warehouse |
Step-by-Step Calculation Example
Let's work through a complete landed cost calculation for a realistic 2026 import scenario: a $5 EXW product, 1,000 units, shipped from Yiwu, China to Los Angeles, USA by sea (DDP). The product's HTS code carries a 5% base duty and a 7.5% Section 301 tariff.
| Cost Component | Calculation | Amount |
|---|---|---|
| Unit price (EXW) | $5 × 1,000 units | $5,000.00 |
| Sourcing agent fee | 5% × $5,000 | $250.00 |
| QC inspection | 1 man-day @ AQL 2.5 | $200.00 |
| Inland China freight | Factory → Ningbo port | $150.00 |
| Export/origin fees | Declaration + documentation | $120.00 |
| International freight (sea DDP) | ~200 kg @ $4/kg | $800.00 |
| Insurance | 0.25% × $5,500 | $13.75 |
| Customs duty (base) | 5% × $5,000 | $250.00 |
| Section 301 tariff | 7.5% × $5,000 | $375.00 |
| MPF (US CBP) | 0.3464% × $5,000 (min $31.67) | $31.67 |
| HMF (ocean) | 0.125% × $5,000 | $6.25 |
| Brokerage + last-mile | LA port → warehouse | $300.00 |
| Total landed cost | Sum of all above | $7,496.67 |
| Landed cost per unit | $7,496.67 ÷ 1,000 | $7.50 |
So a $5 EXW product actually costs $7.50 per unit landed — a 50% uplift over the factory price. If you sell at $15, your gross margin is 50%, not the 67% you would assume from the EXW price alone. If a competitor sources the same product at $4.50 EXW but doesn't calculate freight and duty, they may unknowingly price below their own landed cost.
Common Cost Components Buyers Forget
Most first-time importers miss these line items and are blindsided by the final invoice from their freight forwarder or customs broker. Each one below can add 2-15% to your true per-unit cost:
- Section 301 tariffs (7.5-25%): Still active in 2026 on hundreds of HTS codes. Check your specific code on the USTR Section 301 list before quoting a retail price. These stack on top of base duty.
- De minimis elimination: The $800 US de minimis threshold for China-origin goods ended May 2, 2025. Every shipment is now formally entered and dutiable — including samples and low-value orders that previously entered duty-free.
- MPF (0.3464%, min $31.67): A formal CBP entry fee on every import. On small orders under $9,150, the $31.67 minimum bites hardest — it can add 0.5-2% per unit on top of duty.
- HMF (0.125%): An ocean-only fee that buyers confuse with duty. It is separate, non-negotiable, and collected quarterly by CBP.
- Inland China freight: EXW terms mean you pay factory-to-port trucking ($50-$300). Suppliers quoting FOB include this; EXW does not. Always confirm the Incoterm.
- Destination port charges: Terminal handling charges (THC), demurrage, and chassis fees can add $150-$600 on LCL shipments — often invoiced after delivery.
- Currency and payment fees: T/T bank charges ($25-$50 per transfer), PayPal (4-5% for samples), and FX spread add 1-3% if not negotiated upfront.
- Returns and defects: Budget 2-5% for defect allowance not covered by AQL 2.5 sampling. Inspection catches major defects but cannot guarantee zero.
How Yeatru Can Help
Yeatru Sourcing calculates landed cost for every quote — no hidden fees, no surprises at customs. Based in Yiwu with 75,000+ verified factory relationships, we deliver a transparent all-in number covering EXW unit price, agent fee (3-8%), AQL 2.5 QC, DDP freight, and landed duty. Most clients save 12-28% versus going direct to Alibaba suppliers.
- Free landed-cost quote within 24 hours, including duty estimate by HTS code.
- 3 verified factories compared side-by-side on total landed cost — not just EXW unit price.
- AQL 2.5 pre-shipment QC with photo and video evidence before balance payment.
- DDP door-to-door shipping worldwide — we handle customs clearance and absorb the complexity.
- HTS classification and Section 301 tariff check included on every quote.
- 15-day free warehousing in Yiwu for order consolidation to spread fixed fees over more units.
Frequently Asked Questions
1. How do I calculate landed cost from China?
Landed cost equals EXW unit price times quantity plus agent fee, QC, freight, duty, MPF, HMF, and brokerage, divided by units shipped. For a $5 EXW item at 1,000 units to the US, expect roughly $7.00-$8.50 per unit landed. Always request an all-in DDP quote to confirm the final number before committing.
2. What is the total landed cost formula?
Total landed cost equals unit cost plus sourcing and agent fees, quality control, freight, insurance, customs duty, import fees (MPF and HMF), brokerage, and last-mile delivery. Divide by units received for per-unit landed cost. Every line must be quantified or your margin assumption is wrong by 15-50%.
3. How much is US import duty from China in 2026?
Base duty is 0-25% by HTS code (check HTS.usitc.gov). China-origin goods also face Section 301 tariffs of 7.5-25% per code. Since de minimis ended May 2, 2025, every shipment is dutiable. Use the CBP duty calculator or have your licensed broker classify before you commit to a supplier.
4. What is MPF and HMF at US customs?
MPF (Merchandise Processing Fee) is 0.3464% of FOB value, minimum $31.67, maximum $614.35 in 2026. HMF (Harbor Maintenance Fee) is 0.125% of cargo value, ocean shipments only. Both apply on top of duty and are non-negotiable CBP charges on every formal entry.
5. Is DDP shipping more expensive than FOB?
DDP looks pricier upfront but includes freight, duty, customs, and delivery. FOB shifts all post-port risk and cost to you. For first-time importers, DDP from a reputable agent is usually cheaper in total landed cost because they consolidate freight, classify HTS codes, and handle clearance professionally.
6. How can I reduce my landed cost from China?
Consolidate orders to spread fixed fees (agent, QC, brokerage) over more units. Negotiate EXW down 8-15% via a sourcing agent. Use sea over air where lead time allows. Verify your HTS code to avoid overpaying duty. Run AQL 2.5 QC to cut defect losses 2-5% before shipment leaves China.
Conclusion
Landed cost — not the supplier's unit price — is the only number that protects your margin. In 2026, with US de minimis gone and Section 301 tariffs of 7.5-25% on most China-origin HTS codes, calculating every line item before you commit is non-negotiable. A $5 EXW product typically lands at $7.50 per unit; know that number before you set your retail price. Get a free, all-in landed-cost quote from Yeatru within 24 hours.
