Landed Cost

Landed cost is the true, all-in price of getting an imported product to your door — not just what you paid the supplier, but every charge stacked on top before the goods are yours to sell. The formula is: product cost + international freight + insurance + customs duty + government fees (MPF and HMF) + customs broker and bond fees. For example, $25,000 of machinery from Germany shipped by ocean lands at roughly $30,368 once you add ~$2,200 freight, $250 insurance, a 10% duty (~$2,500), MPF of $86.60, HMF of $31.25, and ~$300 in broker/bond fees — a 21.5% premium over the supplier price. It matters because importers who price off the invoice alone routinely under-quote their real cost by 15-25% and erase their margin.