Import duty and landed cost for Amazon private label

1. FOB price vs. landed cost

FOB — Free On Board — means the seller delivers the goods to the port of export and loads them onto the vessel. Everything that happens after that point is the buyer's cost and risk. When a factory in Guangdong quotes you a FOB price, they're quoting you the cost to get the goods onto a ship in Yantian or.

FOB — Free On Board — means the seller delivers the goods to the port of export and loads them onto the vessel. Everything that happens after that point is the buyer's cost and risk. When a factory in Guangdong quotes you a FOB price, they're quoting you the cost to get the goods onto a ship in Yantian or Nansha. They are not quoting you the cost to get the goods into an Amazon fulfillment center in, say, Eastvale, California.

Landed cost is the all-in cost per unit to get the product from the factory floor to the Amazon fulfillment center. For most small appliance imports from China, this includes:

• FOB price (what you pay the factory)
• Import duty (paid to US Customs at the port of entry)
• Section 301 tariff, if applicable (additional duty on Chinese-origin goods)
• Ocean or air freight
• Marine insurance
• Customs broker fee
• Port handling and destination charges
• Domestic trucking from port to warehouse or FBA
• FBA prep and labeling, if required

For a small appliance with a $15 FOB price importing from China in 2026, total landed cost before FBA fees is often in the $22–$28 range — 50–90% above the FOB price. Where on that range you land depends primarily on the Section 301 duty rate and the shipping method.

2. How import duty works

US import duty is determined by the Harmonized Tariff Schedule (HTS) code assigned to your product. The HTS code is a 10-digit classification code — the first 6 digits are internationally standardized (the HS code), and the last 4 are US-specific.

US import duty is determined by the Harmonized Tariff Schedule (HTS) code assigned to your product. The HTS code is a 10-digit classification code — the first 6 digits are internationally standardized (the HS code), and the last 4 are US-specific. HTS codes and their corresponding duty rates are publicly searchable at hts.usitc.gov.

For small appliances, the base duty rate (MFN — Most Favored Nation rate, which applies to imports from countries with normal trade relations with the US) is typically low. Common small appliance categories:

• Electric food mixers and food processors: 4.2–4.5%
• Electric coffee makers and tea kettles: 0–3.7%
• Electric fans and air movers: 4.7%
• Electric hand tools: 1.7–3.5%
• Small electric motors as standalone components: 0–2.8%

These base rates are applied to the customs value of the goods — generally the transaction value, which is the price you paid the factory (the FOB price or, in some cases, a CIF value). Duty is calculated as a percentage of that value, not of the retail price or landed cost.

Your customs broker will classify your product and file the entry. The HTS classification is not something you can simply assign yourself — different product types fall under different headings, and a misclassification creates duty liability and potential penalties. If you're importing a new product category, ask your broker to confirm the classification before you build your cost model around an assumed rate.

3. Section 301 tariffs on Chinese-origin goods

If your product is manufactured in China, Section 301 tariffs are typically the largest single landed cost variable. These tariffs were first applied in 2018 under a trade action against China and have been maintained and modified through subsequent administrations.

If your product is manufactured in China, Section 301 tariffs are typically the largest single landed cost variable. These tariffs were first applied in 2018 under a trade action against China and have been maintained and modified through subsequent administrations. As of mid-2026, they remain in effect on most small appliance and consumer electronics categories.

Section 301 tariffs are imposed in addition to the base MFN duty rate, and they apply to the same customs value base. The rate varies by HTS code and has been adjusted across multiple lists:

• List 1 and List 2 goods: 25% additional duty. Covers many industrial and electronics components.
• List 3 goods: 25% additional duty. Covers consumer goods including many appliance categories.
• List 4A goods: 7.5% additional duty. Covers consumer electronics and some appliances.

For a product on List 3 with a $15 FOB price, Section 301 alone adds $3.75 per unit in duty. Combined with a 4% base MFN rate ($0.60), total duty is $4.35 per unit — nearly 30% of the FOB price in duty cost alone.

Section 301 duty rates have been subject to ongoing review, exclusion processes, and potential modification. Check the current rate for your specific HTS code before finalizing your cost model — the rate may have changed since any prior estimate you have. Your customs broker or a trade attorney can confirm the current applicable rate and whether any product-specific exclusions apply.

4. Ocean freight and air freight costs

Freight cost per unit depends on the product's weight and cubic volume, the shipping method, and the current market rate. Small appliances are typically dense enough to make ocean freight the standard method for regular reorder quantities. LCL vs.

Freight cost per unit depends on the product's weight and cubic volume, the shipping method, and the current market rate. Small appliances are typically dense enough to make ocean freight the standard method for regular reorder quantities.

LCL vs. FCL. LCL (Less than Container Load) is freight where your goods share container space with other shippers' cargo. You pay for the volume or weight your goods occupy, with a minimum charge. FCL (Full Container Load) is where you rent the whole container. FCL rates are lower per cubic meter than LCL at sufficient volume, but LCL is more practical for smaller initial orders. The crossover point is typically around 12–15 CBM of cargo (roughly a 20-foot container is 25–28 CBM usable).

Transit time. Ocean freight from China to the US West Coast is typically 14–21 days; to the East Coast via the Panama Canal, 28–35 days. These transit times affect your inventory planning — if you're ordering to restock Amazon inventory, your lead time is factory production time plus ocean transit plus time to receive and send to FBA.

Air freight. Air freight is 4–8x the cost of ocean freight per kilogram and is generally reserved for initial samples, urgent restocks, or very high-value, low-volume products. For most small appliance private label operations, air freight for regular orders significantly impairs margin and is a sign that inventory forecasting needs work.

Freight cost per unit at scale. For ocean freight, a rough estimate for small appliances is $1.50–$4.00 per unit depending on product size and current market rates. Rates fluctuate substantially — the 2021–2022 post-pandemic freight surge pushed rates to 5–10x normal; rates have since normalized but remain subject to capacity constraints and carrier behavior. Get current quotes from a freight forwarder rather than relying on estimates more than 60–90 days old.

5. Customs broker and port fees

Your customs broker files the import entry on your behalf, pays the duty to CBP (US Customs and Border Protection), and handles customs clearance documentation. Broker fees for a standard ocean shipment are typically $150–$350 per entry, depending on the broker, the complexity of the shipment, and whether the goods require additional examination.

Your customs broker files the import entry on your behalf, pays the duty to CBP (US Customs and Border Protection), and handles customs clearance documentation. Broker fees for a standard ocean shipment are typically $150–$350 per entry, depending on the broker, the complexity of the shipment, and whether the goods require additional examination.

Port-related fees that often appear on broker invoices:

• ISF filing fee — Importer Security Filing, required 24 hours before vessel loading. Typically $25–$50.
• AMS (Automated Manifest System) fee — carrier-side surcharge, $30–$60.
• Destination terminal handling charges (DTHC) — container handling at the destination port. Varies by port and carrier, $150–$600 for an FCL.
• Exam fees — if CBP selects your shipment for examination (X-ray, intensive inspection), fees can be $200–$1,500 or more. These are not predictable and should be treated as a low-probability tail risk in your cost model.
• Merchandise Processing Fee (MPF) — 0.3464% of the customs value, minimum $31.67, maximum $614.35 per entry.
• Harbor Maintenance Fee (HMF) — 0.125% of the customs value, for ocean shipments through US ports.

On a per-unit basis, broker and port fees typically add $0.50–$2.00 per unit for a reasonable shipment size. The smaller the order, the more these fixed fees weigh on per-unit cost.

6. Domestic trucking and FBA prep

Domestic trucking. Once the shipment clears customs, it needs to move from the port to your warehouse or directly to an Amazon fulfillment center. Drayage (port-to-local warehouse) costs for an FCL are typically $400–$1,000 depending on port and distance.

Domestic trucking. Once the shipment clears customs, it needs to move from the port to your warehouse or directly to an Amazon fulfillment center. Drayage (port-to-local warehouse) costs for an FCL are typically $400–$1,000 depending on port and distance. Long-haul trucking to an FC in a different region adds more. Per-unit trucking cost depends entirely on order size — at FCL volumes, it might be $0.20–$0.50 per unit.

FBA prep. Amazon FBA has labeling and packaging requirements. If your product arrives at the FC without FNSKU labels or with inadequate poly-bag protection, Amazon will charge prep fees or reject the inbound shipment. You can prep at the factory (most cost-effective for labeling at scale), at a US-based 3PL (more flexible, higher per-unit cost), or pay Amazon's per-unit prep fee ($0.50–$2.60 per unit depending on prep type). For most Amazon sellers, factory-level labeling and poly-bagging is the right default — add it to the factory cost.

7. Building the landed cost model

A landed cost model is a per-unit calculation that rolls all import costs into a single number. Build it in a spreadsheet where each line is a separate cost component so you can update individual assumptions without rebuilding the model.

A landed cost model is a per-unit calculation that rolls all import costs into a single number. Build it in a spreadsheet where each line is a separate cost component so you can update individual assumptions without rebuilding the model.

The structure, using a hypothetical $15 FOB small appliance from China:

This example product's landed cost is 57% above the FOB price before FBA storage and referral fees. Those fees — typically 30–35% of the selling price for FBA appliances after referral fee and fulfillment fee — must then be subtracted from the selling price to arrive at gross margin. On a $35 selling price, FBA fees of approximately $12 leave $35 − $12 − $23.64 = negative $0.64 per unit. A product that looked viable at FOB price is underwater at landed cost.

8. Margin check and sensitivity

The most useful version of the landed cost model runs the same calculation under different assumptions to identify which variables have the most impact on margin. Section 301 rate sensitivity. For a Chinese-origin product, the Section 301 rate is typically the largest single variable.

The most useful version of the landed cost model runs the same calculation under different assumptions to identify which variables have the most impact on margin.

Section 301 rate sensitivity. For a Chinese-origin product, the Section 301 rate is typically the largest single variable. Changing from 25% to 7.5% (if an exclusion applies, or if origin shifts to a non-Section-301 country) changes the landed cost by $2.63 per unit in the example above. At 10,000 units, that is $26,300 per order in duty savings — a meaningful number that drives origin diversification decisions.

FOB price sensitivity. A 10% FOB price negotiation at $15 saves $1.50 per unit on the cost of goods but also reduces the duty base proportionally (saving roughly $0.43 in duty at a combined 29% rate). Total savings: approximately $1.93 per unit.

Freight sensitivity. Ocean freight rates fluctuate significantly by season and market conditions. Build a high-freight scenario ($4.50–$5.00 per unit) into your model as a stress test, particularly if you're planning around annual ocean freight contracts rather than spot rates.

Order size sensitivity. Fixed per-shipment costs (broker fees, port fees, domestic trucking) amortize better at higher order quantities. An order of 500 units may carry $3–$4 per unit in amortized fixed costs; the same fixed costs on 5,000 units are $0.30–$0.40 per unit. Minimum viable order size is partly a landed cost optimization, not just a production minimum.

Run the model before you sign the purchase order. It should take under two hours to build from current freight and duty data. The alternative — discovering that the margin doesn't work after the goods have shipped — is a much more expensive lesson.

Frequently asked questions

What is 1. fob price vs. landed cost?

FOB — Free On Board — means the seller delivers the goods to the port of export and loads them onto the vessel. Everything that happens after that point is the buyer's cost and risk. When a factory in Guangdong quotes you a FOB price, they're quoting you the cost to get the goods onto a ship in Yantian or.

What is 2. how import duty works?

US import duty is determined by the Harmonized Tariff Schedule (HTS) code assigned to your product. The HTS code is a 10-digit classification code — the first 6 digits are internationally standardized (the HS code), and the last 4 are US-specific.

What is 3. section 301 tariffs on chinese-origin goods?

If your product is manufactured in China, Section 301 tariffs are typically the largest single landed cost variable. These tariffs were first applied in 2018 under a trade action against China and have been maintained and modified through subsequent administrations.

What is 4. ocean freight and air freight costs?

Freight cost per unit depends on the product's weight and cubic volume, the shipping method, and the current market rate. Small appliances are typically dense enough to make ocean freight the standard method for regular reorder quantities. LCL vs.

What is 5. customs broker and port fees?

Your customs broker files the import entry on your behalf, pays the duty to CBP (US Customs and Border Protection), and handles customs clearance documentation. Broker fees for a standard ocean shipment are typically $150–$350 per entry, depending on the broker, the complexity of the shipment, and whether the goods require additional examination.

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Import duty and landed cost modeling is a spreadsheet exercise, but the inputs require current data: actual HTS classification confirmed by a broker, current Section 301 rate for your specific code, current freight forwarder quotes for your route and volume, and updated FBA fee rates from Seller Central. Estimates from general resources are starting points — the production model should be grounded in real quotes for your specific product and shipment parameters.