The Components of Import Cost
When calculating the true cost of importing goods to the US, the duty rate is only one factor. A complete landed cost calculation includes:
- Customs duty — the percentage-based tariff on the dutiable value
- Merchandise Processing Fee (MPF) — assessed by CBP on every formal entry
- Harbor Maintenance Fee (HMF) — assessed on ocean and air shipments through US ports
- Customs broker fee — paid to your licensed customs broker for filing the entry
- Freight and insurance — may or may not be included in dutiable value depending on Incoterms
Step 1: Determine Dutiable Value
Customs duties are calculated on the customs value, which is normally the transaction value — the price actually paid or payable for the goods. Under most Incoterms:
- FOB terms: Customs value = FOB price (excludes freight and insurance to US destination)
- CIF terms: You still use FOB value for US customs purposes — the US does not include cost of freight and insurance in dutiable value (unlike many other countries)
Assists (tooling, molds, design work you provided to the foreign manufacturer), royalties, and related-party transaction adjustments can increase the dutiable value. Work with a customs broker if any of these apply.
Step 2: Calculate the Customs Duty
Duty = Dutiable Value × Duty Rate
The duty rate comes from the HTS code. For example, if your product (HTS 8471.30) has a 0% MFN rate but a 25% Section 301 additional duty on Chinese-origin goods, the effective rate is 25%.
Step 3: Add the Merchandise Processing Fee (MPF)
The MPF is 0.3464% of the cargo's value, with:
- Minimum: $32.71 per entry
- Maximum: $614.35 per entry
The MPF applies to formal entries (goods valued over $2,500, or regulated goods at any value). Goods from USMCA-qualifying countries (Mexico, Canada) are exempt from MPF if they meet the rules of origin.
Step 4: Add the Harbor Maintenance Fee (HMF)
The HMF is 0.125% of the cargo's value and applies to commercial cargo entering the US through a port of entry by ocean vessel (including most containerized imports). Air shipments are generally exempt.
Step 5: Add Broker and Other Fees
A licensed customs broker will charge for filing your entry, typically:
- Basic entry filing: $75–$150
- ISF filing: $25–$50
- Miscellaneous (bond, document handling): $50–$100
Worked Example
Let's calculate the import cost for a shipment of $10,000 worth of laptop computers from China:
| Item | Rate | Amount |
|---|---|---|
| Dutiable value (FOB) | — | $10,000.00 |
| Customs duty (HTS 8471.30: 0% MFN + 25% Section 301) | 25% | $2,500.00 |
| MPF (0.3464%, max $614.35) | 0.3464% | $34.64 |
| HMF (ocean shipment, 0.125%) | 0.125% | $12.50 |
| Broker fee (estimate) | flat | $200.00 |
| Total import cost | $2,747.14 | |
| Total landed cost | $12,747.14 |
In this example, tariffs and fees add 27.5% to the cost of goods. That number must be baked into your pricing, margin calculations, and product viability analysis before you commit to a sourcing deal.
Use TariffPeek to Look Up Your Duty Rate
Before importing, use our HTS code search to find your product's classification and applicable duty rate. Then run the math above for an accurate landed cost estimate. You can also compare rates across product categories to see how tariffs differ by product type and country of origin.