Landed Cost Calculation for China Electronics Imports
3 resources tagged with "Landed Cost"
Landed cost is the true all-in cost of getting goods from a Chinese factory to your door — factory price plus freight, insurance, duty, tariffs, and FX, not the EXW quote. For US electronics importers, Section 301 tariffs can add 25% on top of the base HTS duty, and a weakening home currency against USD/RMB inflates every line at once. A unit quoted at $10 EXW can land near $14-15 after ocean freight, 25% Section 301, customs brokerage, and currency drift — which is why pricing off the factory quote alone is the classic margin mistake.
When calculating landed cost, build the full stack — EXW + freight + insurance + duty + Section 301 + brokerage + last-mile — and lock or hedge FX if your billing currency isn't USD. The pitfall is treating the factory price as the cost basis and discovering the real margin only after the goods clear customs.
Guides (3)
FAQ
What goes into landed cost for China electronics?
Factory (EXW) price, ocean or air freight, insurance, base import duty, any Section 301 tariff, customs brokerage, and last-mile delivery — plus FX cost if you don't pay in USD. Each can move materially with tariffs or currency.
How much do Section 301 tariffs add?
Section 301 can add 25% on top of the normal HTS duty for many Chinese electronics, depending on HS code. Check your specific code, since rates and exclusions change.
How does exchange rate risk affect landed cost?
If your home currency weakens against USD or RMB, the same factory price costs more in your currency. Without a treasury team, forward contracts or invoicing in USD are the practical hedges.
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