Tariff Calculator
Calculate specific import duties and identify your true Total Landed Cost. Instantly toggle between USA (FOB) and EU (CIF) international tax valuation physics.
*Tariff is calculated only on the value of the goods. Excludes freight.
How Import Duties Are Calculated
Calculating a tariff seems simple: you find your product's percentage tax rate and you multiply it by the cost of the goods. But the definition of 'cost' changes dramatically depending on where the cargo ship drops its anchor.
FOB: The USA System
FOB stands for Free On Board. Countries that use FOB valuation (like the United States) are "importer-friendly." They only charge tariffs on the actual value of the product itself.
- Goods Cost: $10,000
- Shipping Cost: $2,000
- Tariff Rate: 10%
- Taxable Base: $10,000
- Total Tariff Paid = $1,000
CIF: The European System
CIF stands for Cost, Insurance, and Freight. Countries that use CIF valuation (like the EU and UK) are notoriously strict. They charge tariffs on the goods, PLUS the cost of shipping, PLUS the cost of cargo insurance.
- Goods Cost: $10,000
- Shipping Cost: $2,000
- Tariff Rate: 10%
- Taxable Base: $12,000
- Total Tariff Paid = $1,200 (20% higher than the USA)
Impact on Landed Cost
Many businesses fail because they only look at the manufacturer's invoice when setting their retail prices. Your Total Landed Cost is the true capital it requires to get your product across an ocean, past armed customs agents, and physically dropped into your warehouse racking. You must set your retail profit margins based entirely on your Landed Cost, never the factory quote.
Frequently Asked Questions
Importing New Products?
Bookmark this supply-chain tool to rapidly identify the true Landed Cost of new manufacturing contracts.
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