For mid-market and enterprise
Compare U.S. landed-cost scenarios before committing
A transparent illustrative comparison for European import teams: purchase price, assumed duty, logistics, break-even points and the evidence still needed.
General information, not a duty quotation. Shipment-specific conclusions require licensed customs broker review.
A lower purchase price is not always a lower landed cost.
This example compares two hypothetical sourcing offers for the same 10,000-unit commercial requirement. It is an arithmetic demonstration, not a tariff determination, product recommendation, customer result or live output from Greenwich software. The assumed duty percentages below are invented inputs for sensitivity testing. They do not correspond to a country, HTS code or current tariff program.
Both offers assume the same specification, quality, quantity and service level. Commercial viability, supplier capacity and product compliance are not established. The buyer is a Europe-based company planning U.S. expansion, but neither offer is assigned a customs origin from that headquarters location.
Compare the same scope.
All amounts are USD. For this simplified model only, customs value is assumed equal to invoice value. Freight, insurance and other stated logistics are outside that assumed duty base. Actual customs valuation needs a separate determination, including consideration of relevant additions and transaction facts.
| Input / result | Offer A | Offer B |
|---|---|---|
| Units | 10,000 | 10,000 |
| Purchase price per unit | $40.00 | $42.00 |
| Assumed customs value | $400,000 | $420,000 |
| Hypothetical effective duty input | 20% | 12% |
| Modeled duty | $80,000 | $50,400 |
| Freight, insurance and stated logistics | $24,000 | $28,000 |
| Modeled subtotal | $504,000 | $498,400 |
| Modeled subtotal per unit | $50.40 | $49.84 |
Read the cost bridge, not just the winning subtotal.
Offer B costs $20,000 more to purchase and $4,000 more in stated logistics. Its assumed duty is $29,600 lower. The net modeled difference is $5,600, or $0.56 per unit, before excluded costs. That is a potential arithmetic difference under assumptions, not an achieved or available saving.
Formula: modeled subtotal = assumed customs value × (1 + assumed effective duty input) + stated logistics. Excluded: merchandise processing and harbor maintenance fees, broker and bond charges, storage or demurrage, inspections, financing, domestic delivery beyond the stated scope, other taxes and any unmodeled trade remedies. Obtain comparable quotes and add applicable items before a purchase decision.
What would reverse the decision?
At the stated prices and logistics, Offer B breaks even with A at a hypothetical effective duty input of 13.3333%. Its 1.3333 percentage-point headroom is modest. Additional costs above $5,600 for B would also erase the modeled advantage.
| Change to Offer B only | B subtotal | Difference versus A at $504,000 |
|---|---|---|
| Assumed duty 10% | $490,000 | $14,000 lower |
| Assumed duty 12% | $498,400 | $5,600 lower |
| Assumed duty 14% | $506,800 | $2,800 higher |
| Assumed duty 16% | $515,200 | $11,200 higher |
From an illustrative model to a reviewed decision.
1. Supply the evidence: specification, bill of materials where relevant, manufacturing steps, supplier quote, commercial terms and proposed importer.
2. Resolve classification, origin and valuation questions with the responsible licensed customs broker. Check current HTS and applicable additional duties for the intended entry date. Do not reuse the hypothetical inputs from this page.
3. Replace assumed rates and exclusions with reviewed determinations and actual cost quotes. Record source, effective date, unresolved issues and the conditions that would require another review.
4. Agree the commercial decision, then the filing and document-preparation responsibilities. Keep the reviewed assumptions traceable to the entry data.
Questions, answered directly.
Are these actual tariff rates?
No. The 20% and 12% inputs are deliberately hypothetical. They are not an HTS classification, origin determination or current-rate quotation.
Has Greenwich saved a customer $5,600 in this example?
No. This is an illustrative calculation, not a customer case study. The difference depends on assumptions and excludes several potentially applicable costs.
Where do current rates come from?
Start with the current USITC HTS and applicable official notices. A licensed customs broker must evaluate the product, origin, valuation and entry-date facts before replacing the assumptions.
Sources and limits
Sources support the stated context, not an endorsement of Greenwich or a shipment-specific determination.
Define your next U.S. decision.
Agree the question, evidence and responsibilities before acting.
Import readiness review