How to Calculate Landed Cost for China Fixture Imports in 2026
A per-SKU landed cost model for bathroom fixtures bought FOB China, with FY2027 MPF and HMF rules, CBM freight allocation, a breakage reserve and a per-room and 5-year cost view.
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Quick answer: How to calculate landed cost per unit for fixtures bought FOB China: start with the FOB price, then add ocean freight, insurance, broker fees, drayage, delivery and a breakage reserve. Add base duty at your HTS code's rate, plus any Chapter 99 duty your broker confirms. Add the merchandise processing fee (0.3464% of entered value, 34.58 to 670.86 U.S. dollars per formal entry from October 1, 2026) and the harbor maintenance fee (0.125% of value). Split freight by carton CBM and value-based fees by FOB value, then divide each SKU total by quantity.
A factory unit price is only the first line of the cost. A toilet that looks cheaper on the invoice can cost more once it is on site, after freight, damage and labor. This guide shows how to calculate landed cost the way a fixture importer needs it: per SKU, per unit and per installed room.
It is written for the four people who sign off an import budget: finance, purchasing, operations and compliance. Container loading, Incoterms, LCL, cargo insurance and transit time each get a separate article in this cluster, so here they appear only as inputs.
Where fixture budgets leak after the FOB price
Most landed cost guides work one SKU at a time and spread freight evenly per unit. Sanitary ware breaks that approach in four places.
Freight follows volume, not price
A solid surface tub and a brass faucet can ride in the same container. The tub takes far more space, yet a split by value puts more freight on the faucet carton than its size justifies. The tub then looks more profitable than it is.
Duty depends on material and heading
Porcelain toilets, stainless sinks, acrylic tubs and copper-alloy faucets sit under different HTS headings at different rates. One blended percentage across a mixed load overstates duty on some lines and understates it on others.
Breakage costs money even when nobody files a claim
A cracked bowl means a replacement unit, another freight leg, a second install visit and sometimes a late room handover. A calculator that stops at the port never sees those costs.
Installation can rival the product price
On hotel and multifamily work, the number that matters is cost per installed room. Labor, site storage and carry-up to upper floors belong in the model as inputs your installer quotes.
The landed cost stack for fixtures bought FOB China
Each line is paid to the factory, at the U.S. border, after the port, or later in use. Keep every line in its own column so finance can audit it.
| Cost line | What sets it | Owner | Allocation key |
|---|---|---|---|
| FOB product price | Written quotation per model | Purchasing | Direct to each SKU |
| Ocean freight and origin/destination charges | Forwarder quote | Purchasing / logistics | Carton CBM share |
| Cargo insurance | Insured value and premium rate | Finance | FOB value share |
| Base duty | HTS rate for your code × entered value | Compliance / broker | Per SKU at its own rate |
| Chapter 99 additional duty | Current Chapter 99 lines for China-origin goods | Compliance / broker | Per SKU at its own rate |
| Merchandise processing fee (MPF) | 0.3464% of entered value, with a floor and a cap | Broker | FOB value share |
| Harbor maintenance fee (HMF) | 0.125% of value on ocean cargo | Broker | FOB value share |
| Customs broker fees, ISF filing and bond | Broker tariff | Finance | Value share or per entry line |
| Exam, demurrage and detention | Forwarder and terminal tariff, only if delayed | Operations | Carton CBM share |
| Drayage and final delivery | Trucker quote, distance, liftgate | Operations | Carton CBM share |
| Destination unloading and receiving | Warehouse quote for floor-loaded cartons | Operations | Carton CBM or carton count |
| FX and deposit financing | Your bank rate and payment terms | Finance | FOB value share |
| Breakage reserve | Your reserve % per product family | Finance / operations | Per SKU |
| Installation and site handling | Installer quote per fixture | Project manager | Per installed unit |
The first thirteen lines give landed cost. Add installation and you have installed cost, which is the figure a developer compares across bids.
Customs value, duty, merchandise processing fee and harbor maintenance fee
These lines follow federal rules, so finance can recompute each one from the entry summary. Your broker files them, but nobody should have to take them on trust.
What value does CBP charge duty on?
Under 19 CFR 152.102, the price actually paid excludes transportation, insurance and related services for the international shipment. On an FOB China purchase, the invoice price is therefore the usual starting point for entered value. Under 19 U.S.C. 1401a, packing costs, assists and any selling commission the buyer pays outside the invoice are added to it. Buying commissions are not on that list, so give your broker the full payment picture and confirm each item.
Duty: start from the HTS code, not a blended rate
The USITC Harmonized Tariff Schedule lists these column 1 general rates: 6910.10.00 porcelain or china sanitary ware at 5.8%, 6910.90.00 other ceramic at 5.7%, 3922.10.00 plastic baths and sinks at 6.3%, 7324.10.00 stainless steel sinks at 3.4%, and 8481.80.10 copper faucets at 4%.
Treat those as examples, not as your classification. Vanities, solid surface tubs and glass sinks need their own codes confirmed. CBP's Section 301 FAQ states that the additional duties apply only to products of China and are reported on Chapter 99 lines. Those layers change often, so your broker must confirm them per code for the expected entry date.
Merchandise processing fee in FY2027: rate, floor and cap
The Federal Register notice of 31 Jul 2026 keeps the MPF rate at 0.3464%. From October 1, 2026, the minimum is 34.58 and the maximum 670.86 U.S. dollars per formal entry. Dividing each limit by the rate gives two breakpoints.
Below an entered value of 9,982.68 dollars, you pay the floor. Above 193,666.28 dollars, you pay the cap. Between the two, MPF moves in step with value, so check where your entry sits.
Harbor maintenance fee: ocean cargo, same basis as duty
19 CFR 24.24 sets the harbor maintenance fee at 0.125% of cargo value, using the CBP appraised value that also serves for duty. Unlike MPF, the rule sets no cap, so HMF grows with every dollar of entered value.
When informal entry changes the math
19 CFR 143.21 allows informal entry for shipments up to 2,500 dollars, except articles valued over 250 dollars classified in Chapter 99, Subchapters III and IV. China-origin samples can fall into that exception, so ask your broker before you budget a sample shipment at informal-entry rates.
How to calculate landed cost per SKU: the formula block
Build the model per SKU, not per container. The container is only the event that creates the shared costs.
Landed cost per unit, SKU i
LC_i = (FOB_i + Freight_i + ValueFees_i + Duty_i + Reserve_i) / Qty_iFreight_i = (CBM_i / total CBM) × (ocean + drayage + delivery + unloading)ValueFees_i = (FOB_i / total FOB) × (insurance + MPF + HMF + broker)Duty_i = FOB_i × (HTS rate_i + Chapter 99 rate_i)MPF = max(34.58, min(670.86, 0.003464 × total entered value))HMF = 0.00125 × total entered valueReserve_i = (FOB_i + Freight_i + ValueFees_i + Duty_i) × reserve %_iInstalled cost per unit = LC_i + install labor per unit
CBM_i is the packed carton volume per piece times quantity, taken from the packing list. The reserve sits on the landed base because a broken unit has also used up its freight and duty. If you order reserve pieces instead of holding a money reserve, put them in FOB_i, divide by installable quantity, and drop Reserve_i. Never do both.
Delay charges such as exams and demurrage go into the freight pool when they occur. FX costs go into the value pool. Which Incoterm you buy on changes which of these lines you pay at all.
Which allocation key fits which cost
The allocation key decides which SKU looks profitable. Match each key to what actually drives the cost.
| Allocation key | Use it for | Avoid it for | Distortion if misused |
|---|---|---|---|
| Carton CBM | Ocean freight, drayage, delivery, warehouse space | Duty, MPF, HMF, insurance | None for space-driven costs |
| Gross weight | Truck legs near a weight limit; stone or cast iron loads | Light, bulky acrylic tubs and vanities | Undercharges bulky light goods |
| FOB value | Insurance, MPF, HMF, broker fees, FX | Ocean freight | Overcharges small, high-value items such as faucets and smart toilets; undercharges bulky, low-value ones such as one-piece toilets and vanities |
| Unit count | Per-piece labeling, handling, install | Any shared freight | A faucet carries the same freight as a tub |
| HTS line | Base duty and Chapter 99 duty | Anything shared | Blended rates hide real duty per SKU |
Why per-unit freight can differ about 40 times between SKUs
Two SANIKB pages tie a minimum order to one 40HQ. The XA-8822 solid surface tub page says "Minimum order is 35 pcs, one 1×40HQ container," and the SN015 compact undermount sink page says "Minimum order: 1,500 pcs (1×40HQ container)." The SN015 page adds that "Container loading is approximate and depends on model mix and final packing."
Illustrative example — assumed inputs, not a quote: assume each minimum order ships alone in one 40HQ costing $4,000 for ocean freight. Per unit, that is $4,000 / 35 = $114.29 for an XA-8822 tub and $4,000 / 1,500 = $2.67 for an SN015 sink, a gap of about 42.8 times. A flat freight percentage would misprice both.
Other tub pages use the same format, such as "35 pcs · 1×40HQ" for the D-8015T and "15 pcs · 1×40HQ" for the BG327 walk-in tub. Read those as minimum orders, not container capacity, and ask for the loading plan to see how much space a minimum run uses. Unused space is still paid for.
Worked example: a mixed 40HQ of six SANIKB models
SANIKB's contact page lists "40HQ — Mixed container" as a procurement plan option. The example mixes five models with published minimums and an NB-3006 vanity at an assumed quantity. Prices, four carton volumes, freight and fees are assumptions, so swap in your own quotes.
Illustrative example — assumed inputs, not a quote. Freight pool: ocean $3,800, drayage $900, delivery $600, so $5,300.00. Insurance at an assumed 0.3% premium on an assumed insured value of CIF + 10%: (FOB $26,700.00 + ocean $3,800) × 1.10 = $33,550.00, so $100.65. MPF = 0.3464% × $26,700.00 = $92.49, between the floor and the cap. HMF = 0.125% × $26,700.00 = $33.38. Broker, ISF and bond assumed at $350.
Value pool = $576.52. Chapter 99 duty is left out; add your broker's figure. NB-3006 quantity of 20 pcs is assumed. Cells are rounded to the cent from unrounded fees, so a column can differ from its pool by a cent.
| Illustrative: model (qty) | Carton CBM total | FOB value | Freight by CBM | Value fees | Base duty (rate) | Reserve (%) | Landed per unit |
|---|---|---|---|---|---|---|---|
| 2021 one-piece toilet (30) | 7.50 m³ (0.25 assumed) | $4,500.00 | $1,570.80 | $97.17 | $261.00 (5.8%) | $192.87 (3%) | $220.73 |
| 945 smart toilet (20) | 4.1055 m³ (0.205275 listed) | $8,400.00 | $859.86 | $181.38 | $487.20 (5.8%, code to confirm) | $297.85 (3%) | $511.31 |
| GL001 glass vessel sink (20) | 0.80 m³ (0.04 listed) | $800.00 | $167.55 | $17.27 | $40.00 (5% placeholder) | $51.24 (5%) | $53.80 |
| FYF-01006 faucet (100) | 0.50 m³ (0.005 assumed) | $2,500.00 | $104.72 | $53.98 | $100.00 (4%) | $27.59 (1%) | $27.86 |
| D2920 stainless kitchen sink (50) | 6.00 m³ (0.12 assumed) | $4,500.00 | $1,256.64 | $97.17 | $153.00 (3.4%) | $60.07 (1%) | $121.34 |
| NB-3006 vanity, 1000 mm (20) | 6.40 m³ (0.32 assumed) | $6,000.00 | $1,340.42 | $129.55 | $300.00 (5% placeholder) | $155.40 (2%) | $396.27 |
| Total | 25.3055 m³ | $26,700.00 | $5,300.00 | $576.52 | $1,341.20 | $785.02 | $34,702.73 shipment |
Illustrative example — reading the result: the container lands at $34,702.73 against $26,700.00 FOB, about 30.0% above FOB. Per SKU, the uplift runs from 11.4% on the faucet ($27.86 vs $25) to 47.2% on the one-piece toilet ($220.73 vs $150). Split freight by value instead and each faucet would carry $4.96 of freight instead of $1.05, while each 2021 toilet would carry $29.78 instead of $52.36.
Every extra percentage point of Chapter 99 duty across the load adds $267.00 before reserve. This load uses about 25 m³, so the box is far from full; adding cartons lowers freight per unit on every line. The GL001 and NB-3006 duty rates are placeholders, not classification advice.
With realistic inputs the pattern usually holds. Bulky ceramic and cabinet lines absorb most of the freight. Small brass and glass lines take little freight but a larger share of the value-based fees.
The per-room view for hotel and multifamily budgets
Developers compare bids per door, not per SKU. Roll each fixture's landed cost and install labor into one room package.
Illustrative example — assumed install quotes: one bathroom with a 2021 toilet ($220.73), an NB-3006 vanity ($396.27) and an FYF-01006 faucet ($27.86) lands at $644.86. Add assumed installation of $180 for the toilet, $220 for the vanity and $60 for the faucet ($460), and the installed cost is $1,104.86 per room.
The multifamily fixture package guide shows how to structure the bill of materials behind that room number.
Planning a mixed container? Send your SKU list, quantities and destination port and ask for packing information per model, so your freight split runs on real carton volumes. SANIKB will reply with quotation, lead time and packing information within 12 business hours.
SANIKB data for your landed cost calculator
| Model | Material | Size | Published quantity | Published shipping data | Lead time wording |
|---|---|---|---|---|---|
| 945 smart bidet toilet | Vitreous china ceramic | 680 × 410 × 465 mm | 20 pcs | Listed CBM 0.205275; 45 kg gross / 42 kg net | Lead time is 20 to 45 days after deposit. |
| 2021 one-piece toilet | Vitreous china ceramic | 700 × 400 × 650 mm | 30 pcs | Request packing list | 30–45 days after sample approval |
| GL001 amber glass vessel sink | Tempered Glass | 420 × 420 × 145 mm (thickness 12 mm) | 20 pcs | 0.04 m³; 6.8 kg gross / 5.8 kg net | Not stated; confirm at RFQ |
| D2920 double bowl kitchen sink | SUS304 stainless steel, 18 gauge (1.2 mm) | 736.6 × 508 × 254 mm | 50 pcs | Request packing list | 30-45 days after sample approval |
| XA-8822 solid surface tub | Solid Surface | 1700 × 750 × 550 mm | 35 pcs · 1×40HQ | Request packing list | Confirm in quotation |
| D-8015T freestanding tub | Acrylic | 1700 × 800 × 600 mm | MOQ 35 pcs · 1×40HQ | Request packing list | 30-45 days after sample approval |
| FYF-01006 single-hole faucet | Brass | Not stated, request drawing | 100 pcs | Request packing list | 30–45 days (typical); confirmed once the split between the two builds is fixed |
| NB-3006 grid veneer vanity | Stainless steel | 1000 / 1500 / 2200 × 560 × 430 mm | Confirm in quotation | Packing contents agreed at quotation | Confirm in quotation |
Two notes for purchasing. The 945 spec sheet prints its CBM without a unit, so confirm on the packing list that it means m³ per packed piece. The 945 page also says the model "travels in a mixed 1×20 ft container with other models", so plan a 20-piece run to share space.
Smart toilets add commissioning and spare parts on top of landed cost. The smart toilet landed-cost checklist covers those lines, so they are not repeated here.
Breakage reserve and installation: the lines most calculators skip
Set the reserve per product family
SANIKB's project takeoff calculator page uses a plain rule: "Reserve = installation × your reserve %, rounded up." There, installation means installed quantity: "Installation = rooms × fixtures per unit." That rule orders reserve pieces. If you follow it, the extra pieces are already in FOB and quantity, so skip the money reserve in the formula block.
Set the percentage from your own claims history. Vitreous china and glass deserve a higher reserve than stainless sinks or brass faucets. Do not borrow a figure from a freight blog, because the right number depends on carton build and on how often your cargo is handled.
On packaging, SANIKB's QC and testing page shows a demonstration in which "a packed sink carton is dropped, opened and visually reviewed." The same page says the current clips are visual demonstrations, not laboratory tests. Agree carton construction, drop height and post-drop checks for your own order.
Price installation per installed unit
Installation is a local labor quote, so treat it as an input. Ask your installer to price per fixture type and per floor, including carry-up where no freight elevator exists. The NB-3006 page notes that the cabinet is wall-mounted, so confirm the wall build-up and drain position first.
Setting a reserve for ceramic or glass lines? Ask for the carton construction and packout checklist for your models before you fix the percentage.
Extending landed cost to total cost of ownership over 3-5 years
Landed cost stops at the receiving door. An owner or asset manager keeps paying for the fixture for years. A 3-5 year view adds installation, routine parts, unrecovered damage and disposal.
TCO over n years = landed cost + installation + (annual parts and service × n) + unrecovered damage + removal and disposal
Unrecovered damage belongs in that formula. Under COGSA, shown in the 46 U.S.C. 30701 note, carrier liability is limited to 500 dollars per package unless value is declared on the bill of lading. Cargo insurance, not carrier liability, is the real cover.
| Illustrative 5-year view, one toilet | Option A: higher FOB | Option B: lower FOB |
|---|---|---|
| Landed cost per unit (assumed) | $230.00 | $200.00 |
| Installation (assumed installer quote) | $180.00 | $180.00 |
| Parts and service, 5 years (assumed per year) | $75.00 ($15/yr) | $150.00 ($30/yr) |
| Callback visits not recovered (assumed) | $30.00 | $60.00 |
| Removal and disposal at end (assumed) | $25.00 | $25.00 |
| 5-year total per toilet | $540.00 | $615.00 |
A lower FOB saving can be erased, or reversed, if upkeep or callbacks are worse; if they match, the saving stands. Get real parts and callback history from your facility team before you compare two options.
When a per-unit landed cost is the wrong number
A per-SKU model earns its keep on container orders. In a few cases it misleads, and a simpler number serves you better.
Skip CBM allocation for single-model containers
If the container holds one model, divide shared costs by the unit count. CBM shares add nothing when every carton is the same.
Do not use one landed cost percentage across categories
A single uplift on every FOB price misprices bulky and small items at the same time. Use it for a first rough budget, never for a selling price.
Do not lock the model before the broker confirms duty
If any SKU still lacks a confirmed HTS code and Chapter 99 status, the model is a draft. Label it that way in the board pack.
Compare whole-shipment cost for samples and top-ups
On a sample or LCL top-up, fixed charges such as the MPF minimum of 34.58 dollars and consolidation fees can outweigh the freight itself. Compare the whole shipment cost per unit against holding the items for the next container.
Who checks which number
Finance owns the model, the reserve percentage and the TCO horizon. It recomputes MPF and HMF from the entry summary and checks them against the broker invoice.
Purchasing owns FOB price, quantity and packing data. It quotes minimums exactly as published, such as "20 pcs" for the 945, or as confirmed in the quotation. SANIKB's OEM and ODM page gives "30–45 days" as standard production after sample approval, which sets when the deposit is tied up.
Operations owns drayage, delivery windows, site storage and installer quotes. Most ISF elements are due no later than 24 hours before the cargo is laden aboard the vessel at the foreign port, under 19 CFR 149.2, so share the packing list early. Customs broker fees for ISF, entry and bond belong in the value pool.
Compliance owns classification, Chapter 99 lines and product certificates. SANIKB states its products are cUPC certified; ask for the current certificate for the exact model. The cUPC, NSF and WaterSense compliance guide covers that side.
Six documents to request before you order
Each document feeds one line of the model. Without it, that line is a guess.
- Written quotation per model. It fixes FOB price, minimum, lead time and trade term, the base of every other line.
- Packing list with carton dimensions, CBM and gross weight per model. CBM drives the freight split, and weight drives the truck legs.
- Commercial invoice draft. Your broker uses it to check entered value, which drives duty, MPF and HMF.
- HTS classification and Chapter 99 confirmation from your broker. Duty is the largest federal line and changes by code.
- Current cUPC certificate for each exact model. A fixture rejected on site turns into replacement and reinstall cost.
- Packout and inspection plan. It fixes carton build, labels and pass/fail criteria, which set your breakage reserve.
For the submittal side of these documents, see the plumbing fixture submittal package guide.
Building a project budget? Request quotation and packing data for your fixture list and attach your takeoff. The contact form accepts a product list, spec sheet or project drawing as PDF, image or Excel.
Frequently asked questions
What is FOB vs landed cost for a container of bathroom fixtures?
FOB is the price for goods loaded on board at the named China port. Landed cost adds everything after that point: ocean freight, insurance, duty, the merchandise processing fee, the harbor maintenance fee, broker charges, drayage and delivery. Fixture buyers should add a breakage reserve too. FOB is the figure you negotiate with the factory. Landed cost is the figure you budget, price from and compare against a domestic quote.
Does US customs charge duty on ocean freight and insurance?
Not on an ordinary FOB purchase. Under 19 CFR 152.102, the price actually paid excludes transportation, insurance and related services for the international shipment. Duty, MPF and HMF are then calculated on the entered value, which usually starts from the FOB invoice. Freight and insurance still count in your landed cost, but outside the dutiable value. Payments outside the invoice, such as assists or selling commissions, can change that value, so tell your broker about them and confirm each one.
How do I calculate landed cost for multiple items in one container?
Split the costs into three pools. Freight-type costs (ocean, drayage, delivery, unloading) go to each SKU by its share of carton CBM. Value-type costs (insurance, MPF, HMF, broker) go by share of FOB value. Duty is calculated per SKU at its own HTS rate. Add the pools to each SKU's FOB value, add the reserve, then divide by quantity. Unit-count splits overcharge small items like faucets.
Do Section 301 duties apply to toilets and sinks made in China?
CBP states that Section 301 additional duties apply only to products of China and are reported on Chapter 99 lines. Whether a given toilet, sink or faucet code is covered, and at what rate, changes over time. Ask your licensed customs broker to confirm every Chapter 99 line for each HTS code at the expected entry date. Add those lines to base duty before you approve any landed cost model.
How much breakage allowance should I add for ceramic and glass fixtures?
Published figures rarely fit your carton, route and handling chain. Start from your own claims history per product family. Then set a reserve percentage per SKU, higher for vitreous china and glass than for stainless steel or brass. Either order reserve pieces with the takeoff rule, where reserve pieces equal installed quantity times your reserve percentage, rounded up, or hold a money reserve on landed cost, never both. Review the percentage after every container.