Electronics Import Margin Calculator: Landed Cost From China

Most importers think they know their margins. Then they sit down and add up every cost and realize they were off by 15 to 25 points. That gap is the difference between a profitable product and one that’s quietly draining your cash.

The landed cost calculation isn’t complicated. It has about 8 components. The problem is that most importers skip 4 of them.

Step 1: FOB Price and What It Includes

The FOB (Free on Board) price is what your supplier quotes you to get the goods to the port of departure in China. It covers factory cost plus domestic trucking to port plus origin export handling.

When you’re comparing supplier quotes, make sure you’re comparing FOB prices, not EXW (Ex Works). EXW excludes the cost of getting goods to port, which in China can add $150 to $400 depending on factory location and shipment size. A supplier quoting $4.80 EXW may cost more than a supplier quoting $5.20 FOB once you add the inland freight.

FOB also excludes the origin surcharges that freight forwarders charge at the port of departure. These are separate.

The FOB price is your starting point. Everything below adds to it.

Step 2: Origin Charges

These are fees at the Chinese port before your goods get on the ship. They’re often lumped together on freight forwarder invoices as “origin charges” or “export charges.” Know what’s in there.

Typical origin charges for a sea shipment from China include an export customs declaration fee (usually 100 to 200 CNY, roughly $15 to $30), a document handling fee, and origin terminal handling. For an LCL (Less than Container Load) shipment, expect $50 to $150 in origin charges on top of your freight quote.

For a full container, the origin charges are higher. A 20-foot FCL (Full Container Load) typically has $150 to $300 in origin charges including VGM (verified gross mass) filing and terminal handling.

Don’t assume your freight quote includes origin charges. Ask explicitly.

Step 3: International Freight

This is the biggest variable after the FOB price.

For sea freight from China to a US port (Los Angeles, Long Beach, Seattle, New York), current approximate benchmarks in 2026 are:

LCL (Less than Container Load): $150 to $300 per CBM (cubic meter) on a door-to-door basis, including origin and destination surcharges. A small shipment of 2 CBM runs roughly $300 to $600 in ocean freight. LCL minimum charges typically apply at around 1 CBM.

FCL 20-foot container: $1,500 to $3,500 in ocean freight (port-to-port). This varies a lot by season and carrier. Add $400 to $800 in destination charges (see Step 4). A 20-foot container fits roughly 25 to 28 CBM of standard electronics cartons.

FCL 40-foot container: $2,000 to $4,500 in ocean freight. Fits roughly 55 to 60 CBM.

Air freight: $4 to $7 per kg door-to-door for standard electronics from China to a US address. On a 200 kg shipment, that’s $800 to $1,400. Air makes sense only when time matters more than margin, or for very high-value, low-weight products.

Express courier (DHL, FedEx, UPS): $6 to $12 per kg for small shipments under 100 kg. Fast but expensive. Not viable for margin-sensitive products.

Transit times: sea freight from China to US West Coast ports is 18 to 28 days. East Coast is 28 to 40 days. Add 3 to 7 days for LCL consolidation time in China. Air is 3 to 6 days.

Step 4: Destination Port Charges

Once your freight arrives at a US port, there are charges before it reaches your warehouse.

For LCL shipments, destination charges typically include: destination terminal handling (CFS, Container Freight Station), LCL deconsolidation, customs exam if selected (more on that below), and drayage to your freight broker’s warehouse or directly to you. Total destination charges for a standard LCL shipment run $300 to $600.

For FCL shipments, destination charges include port terminal handling, chassis fee if you’re picking up by truck, and drayage. Expect $500 to $1,200 in destination charges for a 20-foot container.

Customs exams add cost. A VACIS (X-ray) exam adds roughly $200 to $350. A tailgate exam (physical inspection) adds $500 to $1,500 depending on labor and warehouse costs. You can’t predict exams, but you can budget for them. Factor 10 to 15% of your shipments getting some form of exam.

Step 5: Import Duties

This is where electronics from China gets complicated.

Every product has an HTS (Harmonized Tariff Schedule) code that determines the base duty rate. Many electronics have a base duty rate of 0% under the Information Technology Agreement (ITA), this covers computers, monitors, semiconductors, and most networking equipment. But “0%” does not mean your total duty rate is zero if you’re importing from China.

Section 301 tariffs apply specifically to goods made in China. These were introduced starting in 2018 and have been maintained and modified since. The rates range from 7.5% to 25% depending on which “list” your product falls under.

Here’s what that means in practice:

A WiFi router has a base duty rate of 0% (ITA-exempt). But routers imported from China face a 25% Section 301 tariff on the List 3 category. Your effective duty rate is 25%.

Bluetooth earbuds have a base duty rate of 0% (ITA-exempt for most). Section 301 adds 25% for most audio products. Effective rate: 25%.

Charging cables (USB cables) typically fall under 8544.42 with a base duty rate of 0% under ITA. Section 301 List 4A adds 7.5%. Effective rate: 7.5%.

LED lighting products fall under Chapter 94. Most have base duty rates of 3.9% to 6.5%, plus Section 301 additions of 25%. Effective rate can be 28.9% to 31.5%.

Always verify your specific HTS code. The USITC HTS database is free at hts.usitc.gov. Get it wrong and you either overpay or face a penalty and back-payment at the port.

Duties are calculated on the CIF value (Cost + Insurance + Freight) under US Customs rules, meaning you pay duty on the FOB price plus international freight plus insurance.

Step 6: Customs Broker Fee

You need a licensed customs broker to clear your goods through US Customs. Their fee for a standard single-entry clearance runs $100 to $200. Some brokers charge a flat fee per entry. Others charge per line item on the commercial invoice.

If you have 10 different products on one shipment, each with a different HTS code, expect a per-line charge of $5 to $15 per additional line.

Annual customs bond: if you import more than a few times a year, buy a continuous bond rather than a single-entry bond. Continuous bonds run $400 to $600 per year. Single-entry bonds cost 0.4% of the imported value with a $50 minimum. At any meaningful import volume, the continuous bond pays for itself.

Step 7: Cargo Insurance

Cargo insurance is not included in freight forwarder quotes unless you specifically add it. It costs 0.3% to 0.8% of the CIF value of your shipment.

On a $10,000 CIF shipment, that’s $30 to $80. Skip it and one lost or damaged container can cost you your entire product investment.

Most freight forwarders offer cargo insurance as an add-on. Buy it. For higher-value electronics shipments, get a policy that covers all risks, not just major accidents.

Step 8: Warehouse Delivery

From the port or freight broker’s warehouse to your own warehouse or fulfillment center, add $100 to $400 for a local delivery, or $0.05 to $0.12 per lb for a domestic trucking move to another state.

If you’re shipping directly to Amazon FBA fulfillment centers, Amazon requires shipments to comply with FBA prep requirements. You may need to pay a prep center $0.25 to $1.00 per unit to sticker, poly-bag, and box items according to FBA specs.

Worked Example 1: Bluetooth Earbuds on Amazon FBA

Let’s run the numbers on a simple product.

FOB price: $5.00 per unit. Order quantity: 1,000 units. Total FOB value: $5,000.

Origin charges: $80 (export docs and port handling for LCL).

Shipping weight and volume: 1,000 units of earbuds in retail boxes, roughly 1.5 CBM and 80 kg.

International LCL freight at $220/CBM door-to-door (mid-range 2026 estimate): $330. CIF value: approximately $5,410.

Import duties: 25% Section 301 on $5,410 CIF = $1,353.

Customs broker fee: $150.

Cargo insurance at 0.5% of CIF: $27.

FBA prep (stickering + poly bag): $0.30 per unit = $300.

Domestic delivery to Amazon warehouse (included in door-to-door LCL rate in this example).

Total landed cost: $5,000 + $80 + $330 + $1,353 + $150 + $27 + $300 = $7,240.

Per unit landed cost: $7.24.

Amazon FBA fees at the $19.99 price point (referral fee 15% = $3.00, FBA fulfillment fee for small standard item approximately $3.22): total Amazon fees $6.22.

Gross margin at $19.99: ($19.99 - $7.24 - $6.22) / $19.99 = 33%.

That’s before advertising (PPC on Amazon typically runs 10 to 20% of revenue for a new listing), returns (3 to 5% for electronics), and storage fees. Real net margin at this price point is probably 10 to 15% if you manage it well. To hit 40% gross margin, you’d need to sell at $22 to $23, or get your FOB price down to $4.00.

This is why margin analysis before ordering matters more than the FOB price alone.

Worked Example 2: WiFi Routers to Wholesale

FOB price: $15.00 per unit. Order: 500 units. Total FOB: $7,500.

WiFi routers are ITA-exempt on base duties (0% base rate). Section 301 tariffs apply at 25% for routers under HTS 8517.62. Effective duty rate: 25%.

Volume and weight: 500 routers with retail packaging, approximately 3 CBM and 250 kg.

Origin charges: $100.

LCL freight at $220/CBM: $660. CIF value approximately $8,260.

Import duties at 25%: $2,065.

Customs broker: $150.

Cargo insurance: $41.

Delivery to your warehouse: $150.

Total landed cost: $7,500 + $100 + $660 + $2,065 + $150 + $41 + $150 = $10,666.

Per unit landed cost: $21.33.

You sell to a regional electronics retailer at $35 wholesale. Gross margin: ($35 - $21.33) / $35 = 39%.

The retailer sells at $65 to $70 retail, making a 46% to 50% gross margin on your product.

At 39% gross margin in wholesale electronics, you’re viable. Below 30% in wholesale, the math gets hard when you account for sales costs, net payment terms (retailers often pay Net 30 to Net 60), and occasional returns.

What Margins to Target

Electronics wholesale to retailers: target 35% to 45% gross margin on landed cost. Below 30% is difficult to sustain once you add sales overhead, financing costs for net terms, and occasional chargebacks.

Electronics sold DTC (your own website or Shopify): you need 55% to 65% gross margin to fund customer acquisition. Consumer electronics is a competitive paid-channel environment.

Amazon FBA: 40% to 50% gross margin on landed cost before Amazon fees. After fees, you need 25% to 35% remaining to cover advertising and make a profit.

Amazon 1P (first-party, selling directly to Amazon as a vendor): Amazon typically offers wholesale pricing 10% to 20% above your landed cost. That’s rarely viable for imported electronics. 1P works for established brands with pricing power, not for importers.

The most common mistake: calculating margin on FOB price instead of landed cost. The Section 301 tariffs alone add 7.5% to 25% to your product cost. Ignore them and your margin calculation is wrong by that much before you’ve added a single shipping charge.

Frequently Asked Questions

What’s the difference between FOB and CIF? FOB (Free on Board) is the price to the port in China. CIF (Cost, Insurance, Freight) is FOB plus the international freight cost plus insurance. US Customs calculates duties on CIF value, not FOB.

Do I need a customs broker? Yes, for commercial imports. You can self-file as an importer of record, but most businesses use a licensed broker. The fee is small relative to the protection against classification errors.

What if my product spans multiple HTS codes? Each product line gets its own HTS code. Work with your customs broker to classify correctly before your first shipment, not after.

Can I deduct duties on my taxes? Import duties are a cost of goods and reduce your taxable income. They’re not a separate tax credit, but they do reduce your taxable profit.