Landed cost ยท For mid-market and enterprise importers
How do we know the U.S. landed cost of each SKU before we place the purchase order?
The U.S. landed cost of a SKU is the supplier price plus freight and insurance, duty on the customs value, the U.S. entry fees and delivery costs. Greenwich Mercantile calculates that landed cost for each SKU, supplier and country before the purchase order is placed, and a licensed U.S. customs broker reviews the duty position so the number can be relied on.
This page is for sourcing, merchandising and finance leads at mid-market and enterprise fashion, beauty, food and consumer goods brands who compare suppliers in several countries and set margins before ordering. Teams looking for software that calculates U.S. landed cost and duty for each SKU get the calculation and a licensed broker's review together.
What goes into the landed cost of one SKU.
- Supplier price. The supplier price is the quoted price on its stated terms, such as FOB or CIF.
- Customs value. Duty is charged on the customs value, generally the transaction value: the price actually paid or payable for goods sold for export to the United States, plus additions such as buyer-paid packing and selling commissions, assists, and royalties required as a condition of sale (19 CFR 152.101, 152.103). See customs valuation errors.
- Freight and insurance. International freight, insurance and related services to the United States belong in the landed cost but not in the customs value (19 CFR 152.102(f)).
- Duty. Duty is the HTS rate for the SKU's classification applied to the customs value. Additional duties depend on origin and the entry date and must be confirmed by a licensed broker. See how CBP decides origin.
- Merchandise processing fee (MPF). The MPF is 0.3464% of the customs value on formal entries (19 CFR 24.23), with a minimum of $34.58 and a maximum of $670.86 per entry in fiscal year 2027, which began on October 1, 2026 (CBP Dec. 26-14). The percentage therefore sets the fee only for entries valued between about $9,983 and $193,666.
- Harbor maintenance fee (HMF). The HMF is 0.125% of the customs value of cargo unloaded from a vessel at a covered U.S. port (19 CFR 24.24).
- Delivery. Delivery covers port handling and drayage to your warehouse, plus broker and bond charges under your own agreements.
How Greenwich builds the number, and who does what.
Greenwich starts from one record per SKU: materials, construction, use, where each production step happens, and each supplier's terms. The work runs from the files and exports you already have.
| Who | What they do |
|---|---|
| Your sourcing, merchandising and finance teams | Choose the SKUs, suppliers and countries to compare, and own the purchase order. |
| Suppliers | Quote prices and terms, and confirm materials, construction and production steps. |
| Greenwich Mercantile | Builds the SKU record and the landed cost for each SKU, supplier and country. |
| Licensed U.S. customs broker | Reviews classification, origin and value, confirms additional duties for the entry date, and later files each entry under your power of attorney. |
Your company stays the importer of record and pays the duty. The landed-cost work is reused: the classification and origin record behind each SKU is kept for later shipments and feeds the pre-entry document check and the entry.
We helped a medium-sized European skincare company model its landed cost, find $305,000 in annual duty savings and enter the U.S. market on the best terms.
Illustrative example: one sweater, two suppliers.
A brand needs 5,000 women's cotton crew-neck sweaters, knitted: HTS 6110.20.20 (sweaters, pullovers and similar articles, knitted, of cotton, other), general rate 16.5%. Both suppliers ship by ocean on one entry each, and delivery from the port costs $0.40 a unit.
| Per unit | Supplier A | Supplier B |
|---|---|---|
| Price paid to the supplier | $15.00 FOB | $16.00 CIF, including $0.50 freight and insurance, itemized |
| Freight and insurance you book | $1.40 | $0.00 |
| Customs value (duty base, not added) | $15.00 | $15.50 ($16.00 less $0.50) |
| Duty, 16.5% of customs value | $2.48 | $2.56 |
| MPF, 0.3464% of customs value | $0.05 | $0.05 |
| HMF, 0.125% of customs value | $0.02 | $0.02 |
| Delivery to the warehouse | $0.40 | $0.40 |
| Landed cost per unit | $19.35 | $19.03 |
Supplier A's price before freight is 50 cents lower, but A lands 32 cents higher, because A's freight costs $1.40 a unit against B's 50 cents. On the shipment, A lands at $96,728.55 and B at $95,152.84, a difference of $1,575.71. MPF is $259.80 for A and $268.46 for B, inside the FY2027 limits. Charging duty on B's full CIF price instead of its customs value would overstate B's duty by $412.50.
The example uses the HTS general (MFN) rate from the USITC HTS on 2 October 2026. Additional duties in force on the entry date, which can differ by supplier country, are excluded and must be confirmed by a licensed broker. Broker and bond charges are also excluded. The example is illustrative, not a customer result.
What to send to start.
- A SKU list with materials, construction, target quantities and current tariff codes.
- Supplier quotes with their terms, and where each production step happens.
- Freight quotes, plus entry summaries (CBP Form 7501) if you have them.
Questions, answered directly.
What is included in the U.S. landed cost of a product?
The U.S. landed cost of a product is the supplier price, freight and insurance, duty on the customs value, the merchandise processing fee, the harbor maintenance fee on ocean cargo, broker and bond charges and delivery, plus any additional duties in force on the entry date.
Is U.S. duty charged on the price including freight?
No. U.S. customs value is generally the transaction value, which excludes international freight, insurance and related services to the United States. Certain items, such as buyer-paid packing and selling commissions and assists, are added.
How are the merchandise processing fee and harbor maintenance fee calculated?
The merchandise processing fee is 0.3464% of the customs value on formal entries, with a minimum of $34.58 and a maximum of $670.86 per entry in fiscal year 2027. The harbor maintenance fee is 0.125% of the customs value of cargo unloaded from a vessel at a covered U.S. port.
Who files the entry with U.S. Customs?
A licensed U.S. customs broker reviews and files every entry under your power of attorney: one of our partner brokers, or your existing broker working from the same record. Greenwich does the customs work behind each entry with AI.
What happens to the landed-cost work after the purchase order?
Greenwich keeps the classification and origin record behind each SKU for later shipments, and the same record is used to check supplier documents before the goods ship and to prepare each entry.
Sources and limits
- 19 CFR 152.101: appraisement methods
- 19 CFR 152.102: price actually paid or payable
- 19 CFR 152.103: transaction value
- 19 CFR 24.23: merchandise processing fee
- Federal Register: FY2027 customs user fees, 91 FR 48398
- 19 CFR 24.24: harbor maintenance fee
- USITC HTS: 6110.20.20
This page does not cover Section 301, Section 232, Section 122 or other Chapter 99 duties, antidumping or countervailing duties, trade agreement preferences or first sale valuation. Sources support the stated context; they are not an endorsement of Greenwich and not a determination on your shipments. Nothing on this page is a duty quotation.
Last reviewed: 2 October 2026.
Twenty minutes with whoever owns your U.S. imports.
Tell us which SKUs, suppliers and countries you are comparing. We will tell you honestly whether there is anything worth doing.
Or write to cameron@greenwich-mercantile.com.