How to Calculate the Landed Cost of Goods from China (2026, with Examples)

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Figures last checked: 31/10/2026.

The factory price is only the start. This guide shows how to work out the landed cost of China imports, step by step. To know if a product from China will make money, you need its landed cost: everything you pay until the goods sit in your warehouse. Freight, insurance, customs duty, import VAT, port fees, the broker, the truck and the bank all take a share.

This guide gives you the landed cost formula, explains why the EU, the UK and the Gulf charge duty on CIF but the US on FOB, and then lands the same USD 10,000.00 FOB order in Dubai, Jeddah, Hamburg and Los Angeles. Two more examples show a small first order flown to Riyadh and a full container to the UK. Every rate is sourced, and every assumption is labelled as one.

Short answer: To calculate landed cost from China, add the product price, inland China transport, main freight, insurance, customs duty, import VAT or sales tax, port and clearance fees, broker fee, last-mile delivery and FX or bank fees. Then divide the total by the number of units to get landed cost per unit.

In 30 seconds

• Formula: product + inland China + freight + insurance + duty + VAT or sales tax + port and clearance + broker + last mile + FX and bank fees.

• Duty base: CIF (goods + freight + insurance to the border) in the EU, UK and GCC; transaction value without international freight in the US.

• Main example: USD 10,000.00 FOB lands at USD 13,803.24 (UAE), USD 15,646.25 (Saudi Arabia), USD 14,442.99 (Germany) and USD 16,921.28 (USA).

• Order size matters: freight and fixed fees cost USD 4.21 per unit on a small air order and USD 0.50 per unit on a full container.

• Biggest swing in 2026: US Section 301 tariffs and Gulf freight. Check both the week you order.

In this guide: Quick answer · What is the landed cost formula · CIF vs FOB customs value · How much does it cost to import from China · Comparing landed cost in four destinations side · Small first order vs full container · How do you calculate landed cost per unit · Hidden costs of importing from China that break · When do you pay each import cost · How to calculate landed cost step by step · Landed cost calculator template · How to reduce landed cost on China imports · By region · Landed cost mistakes to avoid, and what to do if · Landed cost checklist before you order · Key takeaways

Quick answer: landed cost in four destinations

Same goods, same supplier, same FOB price. The destination changes the bill by more than USD 3,000.00.

The cash number is what leaves your account. The last column is the true cost for a VAT-registered business that recovers the import VAT later.

What is the landed cost formula? Block by block

1. Product price. The invoice amount at the Incoterm you agreed (see Incoterms explained).

2. Inland China. Factory to port. Included in FOB, extra on EXW.

3. Main freight. Sea or air, plus surcharges.

4. Insurance. Cargo cover, usually priced as a small percentage of the cargo value.

5. Customs duty. A percentage of the customs value, set by your HS code.

6. Import VAT or sales tax. Charged at the border in the EU, UK and GCC.

7. Port and clearance. Terminal handling, delivery order, storage.

8. Customs broker. The fee to file your declaration.

9. Last mile. Truck from port to warehouse.

10. FX and bank fees. The margin and fees on each supplier payment (see how to pay a Chinese supplier).

Divide the total by the number of units and you have the landed cost per unit: the number to compare with your selling price.

Landed cost vs FOB vs COGS: what is included, and what is not?

FOB is a price term: it tells you where the supplier's costs stop. Landed cost is the full bill to your door. Cost of goods sold (COGS) is an accounting figure, and it usually starts from landed cost. Under the international inventory standard IAS 2, the cost of purchase includes the purchase price, import duties and taxes that are not recoverable, and transport and handling; recoverable taxes are left out, and storage (in most cases), admin overheads and selling costs are excluded (IFRS Community summary of IAS 2, see IFRS Foundation). In practice: put recoverable import VAT in your cash plan, not in your unit cost, and keep marketplace fees and ads in your margin sheet. Your accountant decides the final treatment under your local rules.

CIF vs FOB customs value: which one does your country use?

Duty is a percentage, so the value it applies to matters. In Saudi Arabia, "customs duties are calculated ad valorem on the C.I.F value" (US trade.gov), in line with the GCC common external tariff. In the EU, the Union Customs Code adds "the cost of transport and insurance of the imported goods" up to the place where goods enter the EU, and leaves out transport after entry (Union Customs Code, Articles 71 and 72). The UK works the same way: HMRC says to include transport and insurance "up to the place of introduction" into the UK (HMRC: delivery costs to include in the customs value). The US values goods on the transaction price without international freight, so duty is effectively on FOB.

If you are not sure which Incoterm your supplier quoted, read FOB, CIF and DDP explained first.

Taxes also stack: import VAT is calculated on a base that already includes duty. In the EU, Finnish Customs explains that the VAT base is the customs value plus transport, loading and insurance costs up to the first destination, plus duties and other import charges except VAT itself (Finnish Customs). In the UK, the VAT value is the customs value plus incidental costs up to the first destination in the UK, plus duty and other import charges (HMRC). In Saudi Arabia, ZATCA uses the customs value plus customs duties, excise tax and other charges (ZATCA import VAT guideline). In the UAE, for consignments declared above AED 1,000.00, the VAT base is CIF plus excise, customs duty and customs fees (Zoho UAE VAT FAQ).

How much does it cost to import from China? A worked example in four countries

Example scenario. An importer buys 2,000 units at USD 5.00 FOB Shanghai or Nansha, an order of USD 10,000.00. The goods take about a quarter of a 40ft container, so we use one quarter of the container rate as a simple freight estimate. The same assumptions apply everywhere:

• Insurance: 0.30% of goods + freight (assumption; ask your insurer).

• Port and clearance: USD 400.00; broker: USD 150.00; last mile: USD 200.00 (examples, ask for local quotes).

• FX and bank: 0.60% of the order, USD 60.00. This matches the published Airwallex US price for CNY: a 0.50% FX margin plus a 0.10% CNY payout fee on the free Explore plan (Airwallex US fee schedule). Providers price differently in each country, so use your own figure.

• Freight: indicative only. Germany and USA from the Drewry World Container Index of 29/10/2026 (Shanghai–Rotterdam USD 3,686.00, Shanghai–Los Angeles USD 7,514.00 per 40ft). UAE and Saudi from forwarder quotes published 11/09/2026 (Nansha–Khor Fakkan USD 7,000.00 per 40HQ, Shanghai–Jeddah USD 9,000.00 per 40HQ).

UAE: 5.00% duty, 5.00% VAT

Dubai charges customs duty of 5.00% of the CIF value, with higher rates for alcohol and tobacco (UAE government portal). CIF is USD 11,785.25. Duty at 5.00% is USD 589.26. VAT at 5.00% on CIF + duty (USD 12,374.51) is USD 618.73. A note for 2026: the Strait of Hormuz has been "effectively closed to container shipping since 28 February 2026", according to a logistics briefing updated 11/10/2026, and trucks have queued for hours at the east-coast ports of Khor Fakkan and Fujairah (JW Marine). Khor Fakkan sits on the Gulf of Oman, outside the Strait. Ask your forwarder for the full route cost, not only the sea leg. More in paying suppliers from the UAE.

Saudi Arabia: 5.00% duty (example), 15.00% VAT

Saudi Arabia applies the GCC common external tariff "of at least five percent" on most goods; some processed foods pay more, up to 40.00%, and goods such as rice, coffee and tea enter duty-free (trade.gov). CIF is USD 12,286.75, duty USD 614.34, VAT at 15.00% on CIF + duty USD 1,935.16. Freight is the big variable: the same forwarder listed Shanghai–Jeddah 40ft quotes from USD 3,500.00 to USD 10,800.00 between January and September 2026 (Good Hope Freight).

Germany (EU): 4.00% duty (example), 19.00% import VAT

EU duty depends on the product's TARIC code; we use 4.00% as an example. CIF is USD 10,954.26, duty USD 438.17. Import VAT at 19.00% applies to CIF + duty + port costs (USD 11,792.43), so USD 2,240.56. If the truck to your warehouse is on the same transport contract, it belongs in the VAT base too. Germany has the cheapest freight of the four, and its import VAT is usually deductible. See paying suppliers from Europe.

USA: the 2026 tariff stack, check before ordering

The US tariff picture changed several times in 2026. Here is the position on 31/10/2026, from official sources:

• IEEPA tariffs ("fentanyl" and "reciprocal") have ended. The Supreme Court ruled on 20/02/2026 that IEEPA does not allow tariffs, and CBP stopped collecting IEEPA duties on goods entered from 24/02/2026; Section 301 and Section 232 duties were not affected (CBP CSMS #67834313). A temporary Section 122 surcharge of 10.00% then applied until 24/07/2026.

• Section 301 China tariffs remain: 25.00% on Lists 1 and 2 since 2018 and on List 3 since 10/05/2019 (Federal Register, List 3), and 7.50% on List 4A. After the four-year review some products pay much more, for example 100.00% on electric vehicles and 50.00% on solar cells (Federal Register 2024-21217).

• New Section 301 forced-labour duty of 12.50% on products of China entered from 24/07/2026, under heading 9903.05.31 (CBP CSMS #69326983). CBP lists general exemptions under headings 9903.05.85 to 9903.05.92, for example steel, aluminium and copper articles, certain vehicles and parts, pharmaceuticals and civil aircraft.

• Customs fees from 01/10/2026: Merchandise Processing Fee 0.3464% on formal entries (minimum USD 34.58, maximum USD 670.86) (Federal Register 2026-15530) and Harbor Maintenance Fee 0.125% of cargo unloaded from a vessel, so sea freight only (19 CFR 24.24).

• No de minimis: the USD 800.00 duty-free exemption is suspended for goods from China (Federal Register).

Does the 12.50% tariff stack on the 25.00% and 7.50% tariffs?

Yes, on the reading of Global Trade Alert: "the new duty applies in addition to the existing Section 301 duties on imports from China" (Global Trade Alert). CBP's guidance (CSMS #69326983) sets the 12.50% under heading 9903.05.31 and keeps goods subject to anti-dumping, countervailing and other duties, but does not spell out the combination with older Section 301 lists. Your exact total depends on your HTS code and any exemption, so confirm it with a licensed customs broker.

In our example, a product with 4.00% normal duty on List 3 pays 4.00% + 25.00% + 12.50% = 41.50% on FOB: USD 4,150.00, plus USD 47.14 of MPF and HMF. A product on no Section 301 list would still pay 4.00% + 12.50% = USD 1,650.00. US sales tax is charged on the retail sale, not at import. For payment routes and more US cases, see paying suppliers from the USA.

Comparing landed cost in four destinations side by side

In the EU and Gulf, VAT is the biggest tax but you usually get it back. In the US, duty is the biggest cost and it is final.

Small first order vs full container: two more worked examples

The main example uses one order size. Real buyers start small, then grow. These two examples show how much the order size and shipping mode change landed cost per unit. Every rate is either sourced or labelled as an assumption.

Example A: a Riyadh buyer's first order, USD 3,000.00 by air

Example: a Riyadh online shop tests a product with 600 units at USD 5.00, a USD 3,000.00 order. It needs stock fast, so it flies the goods. We assume 150 kg of chargeable weight and use the only published air rate we could find on a forwarder page: USD 13.50 per kg with Emirates into Saudi airports, dated 15/09/2026, origin airport not stated (Good Hope Freight). Treat it as indicative.

The product costs USD 5.00 at the factory and USD 9.68 to USD 11.01 on the shelf. Air freight alone is 67.50% of the goods value. That is normal for small, urgent orders, and it is why many sellers fly a first batch only to test demand, then switch to sea.

Example B: a UK buyer's repeat order, USD 50,000.00 in a full 40ft

Example: a Manchester distributor reorders 10,000 units at USD 5.00, a USD 50,000.00 order that fills a 40ft container. The Drewry index has no UK lane, so we use its Shanghai–Rotterdam rate of USD 3,686.00 (29/10/2026) as a stand-in; replace it with a Felixstowe or Southampton quote. The duty rate of 4.00% is an example; look up your code in the UK Trade Tariff.

Two UK details change the picture. First, HMRC adds incidental costs up to the first destination in the UK to the VAT base, so the port charges and the haulage to the warehouse are in it, but the broker's own fee is not (it is a separate service). Second, a VAT-registered business can use postponed VAT accounting: it declares and recovers the import VAT on the same VAT return instead of paying it at the border (HMRC). That cuts the cash needed at import from USD 69,021.13 to USD 57,600.94.

Does order size change landed cost per unit?

Yes, a lot. Duty and VAT are percentages of value, so per unit they change only a little (in CIF countries, expensive freight raises them slightly). Freight and fixed fees change much more. Clearance, broker and delivery cost about the same for 600 units as for 10,000, so on a small order they weigh heavily on each unit. For US buyers, a small entry has its own trap: the MPF minimum of USD 34.58 applies to formal entries, which start above USD 2,500.00 (19 CFR 143.21).

Air freight vs sea freight: how the shipping mode changes landed cost

Air is priced per chargeable kilogram, sea per container or per cubic metre. For light, valuable goods air can make sense; for anything bulky, it eats the margin. In Example A, air freight cost USD 3.38 per unit; in the main sea example it was USD 1.13 per unit, and in the full container only USD 0.37. If you share a container, LCL (less than container load) is priced per revenue tonne, meaning 1 cubic metre or 1,000 kg, whichever is greater, plus documentation and warehouse charges (Good Hope Freight). Ask for both an air and a sea quote and compare the landed cost per unit, not the freight alone.

How do you calculate landed cost per unit?

Price your product from the teal bar (after VAT recovery), but fund your cash flow from the gold bar.

Landed cost per unit is simply the total landed cost divided by the units that arrive in sellable condition. If 2.00% of units arrive damaged, divide by the good units, not the ordered units. If one shipment mixes several products, split shared costs (freight, port, broker) by volume or weight, and duty by each product's own customs value and rate. A common shortcut is to allocate everything by value, but that makes light, expensive items look too costly and bulky, cheap items look too cheap.

Example: a Casablanca retailer imports 1,000 lamps and 4,000 lamp shades in one container. The shades take 70.00% of the volume but only 30.00% of the value. Allocating freight by volume puts most of the freight on the shades, which is where it really belongs.

Hidden costs of importing from China that break your estimate

Most estimates go wrong in the lines nobody quoted. Watch for these:

• Destination charges. Terminal handling, delivery order and documentation fees are billed at arrival. A port-to-port freight quote does not include them.

• Container drop-off fees. One China–Gulf forwarder notes that its Middle East quotes exclude a drop-off charge of USD 400.00 per 20GP or USD 800.00 per 40ft, collected at destination (Good Hope Freight).

• Storage, demurrage and detention. Free days at the port and for the container are limited. After that, fees run per day, so slow paperwork costs money.

• Customs exams. If customs selects your container for inspection, you pay the handling. Keep a reserve.

• Trade defence duties. Anti-dumping and countervailing duties come on top of normal duty. For example, the EU extended its duties on Chinese e-bikes for five years on 24/01/2025, with anti-dumping rates from 10.30% to 70.10% and countervailing rates from 3.90% to 17.20% (European Commission).

• Inspection and testing. A pre-shipment inspection or lab test is a real cost per order; add it.

• Currency moves. If you pay a 70.00% balance weeks after the deposit, the exchange rate can move in between.

Does DDP lock in your landed cost?

Partly. Under DDP the seller quotes a delivered price that should include freight, duty and import taxes. That is simpler, but you lose sight of the customs value, the HS code used and the VAT paid. If you are VAT-registered, you may not be able to recover import VAT that someone else paid, and you depend on the seller's broker if customs asks questions. Ask what a DDP price includes in writing, and compare it with your own landed cost sheet. Our Incoterms guide covers DDP risks in detail.

When do you pay each import cost? Plan your cash

The deposit and balance go out weeks before arrival. Duty and VAT come all at once when the goods land, and the port will not release them until they are paid (unless you use a deferment or postponed VAT scheme). Storage fees start if you are late.

How to calculate landed cost step by step

1. Confirm the HS code. Ask a customs broker, or use the official tool: the EU TARIC database, the UK Trade Tariff, the US Harmonized Tariff Schedule or your Gulf customs portal. The code sets the duty rate.

2. Get dated quotes. Freight, insurance, port charges, broker and truck, all dated the same week. Freight in 2026 moved by thousands of dollars per container.

3. Find the customs value. CIF in the EU, UK and GCC; transaction value without international freight in the US. Elsewhere, ask your broker.

4. Apply duty, then VAT. Duty = customs value × rate. VAT = (customs value + duty + other costs the law adds) × VAT rate.

5. Add fees and FX. Port, broker, last mile and the full cost of paying the deposit and the balance.

6. Divide by sellable units. Show two numbers: cash per unit, and cost per unit after VAT recovery.

7. Re-check before you pay the balance. Tariffs and freight can change between deposit and shipment. Update the sheet before the 70.00% balance goes out.

Landed cost calculator template: fill in your own numbers

Copy this table into a spreadsheet and fill one column per quote.

How to reduce landed cost on China imports

• Fill the container. As Example B shows, freight per unit falls fast with volume. Combine products or suppliers into one shipment when you can.

• Choose the right mode. Fly only what must arrive fast; ship the rest by sea.

• Classify correctly. A correct HS code (and a binding ruling where available) avoids overpaying duty and penalties.

• Check origin and trade defence duties before you choose the product, not after it lands.

• Use VAT tools. Postponed VAT accounting in the UK, or deferment schemes where they exist, protect your cash.

• Pay suppliers cheaply. Compare FX margins; see our Airwallex review.

• Buy from a verified supplier. A failed order is the most expensive landed cost of all (supplier verification checklist).

By region: MENA, Europe, USA

Gulf: import duty from China to the UAE and Saudi Arabia

The GCC common tariff applies duty on CIF value, at least 5.00% on most goods, with some goods higher (trade.gov). VAT is 5.00% in the UAE and 15.00% in Saudi Arabia (PwC tax summaries). If you hold stock in a UAE free zone for re-export, ask your free zone authority and broker when duty becomes due (see free zone vs mainland). In 2026 the bigger swing has been the shipping route, not the duty: budget road transport from the discharge port. Company structure also affects how you pay and recover VAT; compare options in Hong Kong vs Dubai vs US LLC for importers. Payment tips: paying suppliers from Saudi Arabia.

North Africa and Levant: Egypt, Morocco, Tunisia, Jordan

Duty rates vary much more by product than in the Gulf, so the HS code matters even more, and you should ask your broker how the customs value is built. Standard VAT is 14.00% in Egypt, 20.00% in Morocco and 19.00% in Tunisia, and the general sales tax in Jordan is 16.00% (PwC). Tunisia calculates import VAT on the price plus import duties, surcharges and consumption taxes, charges a customs formality fee of 3.00% of the duties paid, and some duties can reach 200.00% (trade.gov). In Morocco, VAT on imported goods ranges from 0.00% to 20.00% (trade.gov). Add the bank cost of opening the import file and the timing of the FX purchase, which can move your landed cost more than freight (see from Egypt, from Morocco).

Europe and the UK

The EU taxes the CIF value at the EU border, with duty set by the TARIC code, and import VAT of 19.00% in Germany; the highest standard rate in the EU is 27.00% in Hungary (PwC). The UK applies 20.00% VAT on imports, on the customs value plus duty and costs to the first UK destination (HMRC), and lets registered businesses postpone it to the VAT return. Registered businesses usually recover import VAT. Check anti-dumping duties in TARIC before you choose a product: on goods such as e-bikes they can be far higher than the normal duty.

USA

Duty on FOB value, Section 301 layers, MPF and HMF, and no import VAT (sales tax applies at retail); the full 2026 stack is set out above. If you form a US company to import, compare providers in Firstbase vs doola.

Who this guide is for, and who it is not for

• For: small importers, Amazon and e-commerce sellers, and distributors who buy FOB or EXW from China and clear goods in their own name.

• For: founders comparing which market or company base to import into (start with the setup route finder).

• Not for: DDP buyers, where the supplier quotes a delivered price (you still need to check what it includes).

• Not for: regulated goods (food, medicine, batteries, chemicals) that need licences or tests; add those costs separately.

Landed cost mistakes to avoid, and what to do if it goes wrong

If it goes wrong: if customs reclassifies your goods, ask your broker for the legal basis in writing and request a binding tariff ruling for the next order. If you overpaid duty, act quickly: in the EU, a repayment request for overcharged duty is generally due within three years of the notification of the customs debt (Union Customs Code, Article 121); in the US, a protest is generally filed within 180 days after liquidation (19 U.S.C. 1514). If cash runs short at arrival, ask the port about free storage days before fees start, and pay duty first to stop them.

Landed cost checklist before you order

• HS code confirmed by a customs broker

• Duty rate and basis (CIF or FOB) checked on the official tariff, including anti-dumping duties

• VAT or sales tax rate and recovery rules checked

• Freight quote dated this week, surcharges included, air and sea compared

• Local costs quoted in writing: port, drop-off, broker, last mile

• Payment costs added for deposit and balance

• Inspection cost added if you book a pre-shipment inspection

• Cash ready for duty and VAT on arrival

• Supplier verified before the deposit (supplier verification checklist)

Key takeaways

• Landed cost = everything you pay until the goods reach your warehouse, not only the FOB price.

• The EU, UK and GCC charge duty on CIF; the US charges on the transaction value without international freight.

• VAT is charged on a base that already includes duty, but registered businesses usually recover it.

• In our main example the same USD 10,000.00 order landed between USD 13,803.24 and USD 16,921.28.

• Order size and mode matter: freight and fixed fees ranged from USD 4.21 to USD 0.50 per unit across our three examples.

• US Section 301 layers are the biggest cost driver for US buyers; confirm the stack per HTS code.

• Get dated quotes, including destination charges, and re-check before paying the balance.

Glossary

Landed cost: the total cost of goods until they reach your warehouse.

FOB: Free On Board; the supplier pays costs until the goods are loaded at the Chinese port.

CIF: Cost, Insurance and Freight; goods value plus freight and insurance to the destination port.

DDP: Delivered Duty Paid; the seller delivers and pays import duty and taxes.

HS code: the international product code that sets your duty rate (HTS in the US, TARIC in the EU).

Section 301: the US law used to put extra tariffs on Chinese goods.

MPF / HMF: US Merchandise Processing Fee and Harbor Maintenance Fee.

Chargeable weight: the weight an airline bills, the higher of actual and volume weight.

Demurrage and detention: daily charges when a container stays too long at the port or with you.

Postponed VAT accounting: a UK scheme to declare and recover import VAT on the VAT return.

Input VAT recovery: deducting import VAT from the VAT you owe, for registered businesses.

FAQ

What is the formula for landed cost? Product + inland China + freight + insurance + duty + import VAT or tax + port and clearance + broker + last mile + FX and bank fees. Divide by sellable units for the per-unit cost.

Is VAT part of landed cost? It is part of the cash you pay. If your business is VAT-registered and can recover it, leave it out of the cost you use to set prices.

Is landed cost the same as COGS? No. Landed cost is what it costs to get goods to your warehouse; COGS is the accounting cost of the goods you sold in a period. Under IAS 2, purchase cost includes import duties, non-recoverable taxes and transport, so landed cost (minus recoverable VAT) is usually the starting point for COGS.

How much are US tariffs on Chinese goods in 2026? Normal duty, plus 25.00% or 7.50% Section 301 if your product is on a list, plus the 12.50% forced-labour duty from 24/07/2026 unless exempt. Higher Section 301 rates apply to some products such as electric vehicles. Check your HTS code before ordering.

Does the 12.50% US tariff stack on Section 301 List 3 tariffs? Global Trade Alert reads it as applying in addition to the existing China Section 301 duties, and CBP collects it under heading 9903.05.31. Exempt goods, such as certain steel, aluminium and copper articles, do not pay it. Ask a licensed broker to confirm the full stack for your HTS code.

How do I estimate freight from China? Use an index like the Drewry World Container Index or Freightos FBX for a rough idea, then get a dated quote from a forwarder. Index rates are port-to-port only and leave out destination charges.

How much does air freight add to landed cost? It depends on weight and volume. In our Riyadh example, air freight at an indicative USD 13.50 per kg added USD 3.38 per unit on a USD 5.00 product, against USD 0.37 per unit in a full sea container.

Does an FOB price include shipping? Only to the Chinese port. Main freight, insurance and everything after are yours.

Does DDP include all landed costs? A DDP price should include freight, duty and import taxes to the agreed place, but not always local delivery, storage or your own payment costs. Ask for the breakdown in writing, and remember you may not be able to reclaim import VAT the seller paid.

What customs duty does the UAE charge on Chinese goods? Dubai charges 5.00% of the CIF value on most goods, with higher rates for alcohol and tobacco, plus 5.00% VAT.

Is import duty charged on shipping costs? In the EU, UK and GCC, yes, because freight and insurance up to the border are part of the customs value. In the US, international freight is not part of the dutiable value.

Can I avoid paying import VAT at the UK border? A UK VAT-registered business can use postponed VAT accounting and declare and recover the import VAT on the same VAT return. It does not remove the VAT, but it removes the cash payment at import.

How do I calculate landed cost for Amazon FBA? Use the same formula, then add the cost of moving goods into Amazon warehouses and any prep or labelling. Amazon fees are selling costs, so keep them in your margin sheet, not in landed cost.

What percentage of the product price is landed cost from China? There is no fixed rule. In our sea examples, landed cost was about 1.38 to 1.69 times the FOB price, and 2.20 times on a small air order. Light, expensive goods can be lower; bulky, cheap goods much higher.

Related guides

• Incoterms 2020 Explained: FOB, CIF, DDP for China
• Pay Chinese Supplier from USA: 2026 Fees & Tariffs
• Import Documents from China: Full Guide (2026)
• How to Pay a Chinese Supplier: Wise vs Payoneer vs Airwallex
• Setup Route Finder: which company should you open?

This article is for information only and is not legal, tax or financial advice. Duty rates, tariffs and freight change often; confirm with your customs broker and forwarder before you order. Figures checked 31/10/2026.

Sources

• Drewry: World Container Index, 29/10/2026 (checked 31/10/2026)

• Good Hope Freight: China to UAE sea freight rates, September 2026 (checked 31/10/2026)

• Good Hope Freight: China to Saudi Arabia freight rates, September 2026 (checked 31/10/2026)

• JW Marine: Jebel Ali port updates, updated 11/10/2026 (checked 31/10/2026)

• US International Trade Administration: Saudi Arabia import tariffs (checked 31/10/2026)

• UAE government portal: clearing customs and paying customs duty (checked 31/10/2026)

• Zoho: UAE VAT on imports FAQ (checked 31/10/2026)

• ZATCA: Guideline on imports and exports under VAT (checked 31/10/2026)

• PwC Worldwide Tax Summaries: VAT rates (checked 31/10/2026)

• US International Trade Administration: Tunisia import tariffs (checked 31/10/2026)

• US International Trade Administration: Morocco import tariffs (checked 31/10/2026)

• Union Customs Code (Regulation 952/2013), Articles 69–76: value of goods (checked 31/10/2026)

• Union Customs Code (Regulation 952/2013), Article 121: repayment time limits (checked 31/10/2026)

• Finnish Customs: Taxable amount for import VAT (checked 31/10/2026)

• European Commission: EU extends duties on electric bicycles from China (checked 31/10/2026)

• HMRC: Delivery costs to include in the customs value (checked 31/10/2026)

• HMRC: Working out the VAT value using the customs value (checked 31/10/2026)

• HMRC: Check when you can account for import VAT on your VAT return (checked 31/10/2026)

• CBP CSMS #67834313: IEEPA duties no longer collected (checked 31/10/2026)

• CBP CSMS #69326983: Section 301 forced labor import duties (checked 31/10/2026)

• Global Trade Alert: Forced labour Section 301 final action (checked 31/10/2026)

• Federal Register 2026-15181: Section 301 forced labour final action (checked 31/10/2026)

• Federal Register: Section 301 List 3 increase to 25% (checked 31/10/2026)

• Federal Register 2024-21217: Section 301 four-year review modifications (checked 31/10/2026)

• Federal Register 2026-15530: Customs user fees for fiscal year 2027 (checked 31/10/2026)

• eCFR: 19 CFR 24.24 Harbor Maintenance Fee (checked 31/10/2026)

• eCFR: 19 CFR 143.21 informal entries (checked 31/10/2026)

• Federal Register: de minimis suspension interim final rule (checked 31/10/2026)

• Cornell LII: 19 U.S.C. 1514 protests (checked 31/10/2026)

• Dorsey: Supreme Court ruling on IEEPA tariffs (checked 31/10/2026)

• Airwallex US: fee schedule (checked 31/10/2026)

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