Reading Your Landed Cost Report

A landed cost report breaks down the total cost of imported goods to the first US warehouse. It starts with the supplier's commercial invoice and adds all the costs of getting the goods through customs and to your receiving dock. The format varies by tool, but the underlying components are consistent. This guide explains each line in a typical landed cost report.

The structure of a typical report

A clean landed cost report has four main sections:

1. Customs value calculation: how the dutiable value was derived.
2. Duty and fees: each layer of duty, MPF, HMF.
3. Logistics costs: freight, insurance, terminal handling, trucking.
4. Total landed cost: rollup at consignment level and per-unit.

Section 1: customs value

For US imports, the customs value is the transaction value, which is the price actually paid or payable for the merchandise when sold for exportation, subject to specified additions:

For EU and UK imports, the customs value is CIF (cost, insurance, freight) to the EU/UK frontier. Ocean freight and insurance are included in the dutiable base.

A clean report shows:

CUSTOMS VALUE (US)

  Commercial invoice value (FOB)    100,000.00 USD
  Additions:
    Royalty to seller                 2,000.00
    Assists from buyer                1,500.00
  ----------
  Customs value                     103,500.00 USD

Section 2: duty and fees

Each duty layer is shown separately:

DUTY AND FEES

  MFN HTS duty 8528.72.64 @ 5%     5,175.00 USD
  Section 301 List 3 @ 25%        25,875.00 USD
  Section 122 @ 15%               15,525.00 USD
  Section 232 (anti-stack)             0.00
  AD duty (case A-570-XXX) @ 0%        0.00
  ----------
  Subtotal duty                   46,575.00 USD

  MPF @ 0.3464%                      614.35 (cap)
  HMF @ 0.125%                       129.38
  ----------
  Total fees                         743.73 USD

  TOTAL DUTY + FEES               47,318.73 USD

Each line is identifiable by HTS chapter 99 code on the entry summary. The report should match what your customs broker filed.

Section 3: logistics costs

The non-duty cost of getting the goods to the warehouse:

LOGISTICS

  Ocean freight (port to port)     4,200.00 USD
  Marine insurance                   350.00
  Origin handling charges            800.00
  Terminal handling at destination 1,200.00
  Customs broker fees                300.00
  Inland trucking to warehouse       450.00
  Chassis fees and demurrage         100.00
  ----------
  Total logistics                  7,400.00 USD

Some of these are estimates at the quoting stage and actuals after the shipment. The variance is usually in chassis, demurrage, and accessorial charges.

Section 4: total landed cost and per-unit

The rollup:

TOTAL LANDED COST

  Commercial invoice (FOB)       100,000.00 USD
  Plus additions to value          3,500.00
  Plus duty                       46,575.00
  Plus fees                          743.73
  Plus logistics                   7,400.00
  ----------
  Total landed cost              158,218.73 USD

  Units shipped                       1,000
  Landed cost per unit              158.22 USD per piece
  Versus FOB unit cost              100.00 USD per piece
  Landed cost markup                  58.2%

The per-unit landed cost is the figure you use for pricing decisions. Compare against the FOB unit cost to understand the impact of duty and logistics.

Variance analysis

For ongoing comparisons (estimate vs actual), a good report shows variance:

VARIANCE: ESTIMATE VS ACTUAL

                          Estimate    Actual    Variance
  Freight                  4,000     4,200      +200
  Insurance                  300       350       +50
  Terminal handling        1,100     1,200      +100
  Trucking                   400       450       +50
  Demurrage                    0       100      +100
  Broker fees                300       300         0
  ----------
  Total logistics variance              +500 USD

Tracking variance helps you tighten future estimates and negotiate with carriers.

Per-SKU breakdown

If the shipment contains multiple SKUs:

PER-SKU BREAKDOWN

  SKU         Units   FOB    Duty    Logistics  Landed/unit
  BH-200      500    25.00   12.50   2.10       39.60
  BH-300      300    35.00   17.50   2.94       55.44
  Cable-USB-C 200    1.50    0.75    0.13        2.38

Apportionment of duty and logistics across SKUs is typically by line value, gross weight, or volume (whichever drives the cost). The report should disclose the apportionment basis.

What the report does not include

A landed cost report typically excludes:

• Working capital cost of inventory.
• Warehousing and storage (separate inventory carry cost).
• Insurance on inventory after receipt.
• Internal handling at your warehouse.
• Returns or claims related to defects.
• Marketing or selling costs.

These are downstream costs. Landed cost specifically captures the cost of getting the goods to your dock; the rest is cost-of-goods-sold accounting.

Use cases for the report

1. Pricing: set your selling price as a markup over landed cost.
2. Sourcing decisions: compare two suppliers in different countries on a landed cost basis, not just FOB.
3. Margin analysis: confirm that the actual landed cost matches the budgeted figure.
4. Tax planning: identify duty drawback opportunities, FTZ savings, FTA preference opportunities.
5. Cash flow planning: anticipate the duty payment as a separate cash outflow from the supplier payment.
6. Audit defense: keep landed cost reports as part of the entry file for reasonable care documentation.

Currency translation

When the commercial invoice is in a foreign currency, the report must translate to the importer's reporting currency. For US imports, CBP requires currency conversion at the rate certified by the Federal Reserve Bank of New York for the relevant quarter. The CBP-published rate may differ from the spot rate on the date of payment to the supplier. A clean landed cost report shows both the original currency amounts and the USD equivalents, with the FX rate used.

For multi-currency operations: a Mexican peso invoice for Mexican-origin assists, a USD invoice for the main goods, and a CNY invoice for Chinese components, all on one shipment. The report should consolidate to a single currency for the landed-cost rollup while preserving the audit trail.

Period-over-period analysis

When you run the same import lane multiple times, a useful enrichment is a period-over-period comparison:

• Quarter-over-quarter changes in freight rates.
• Year-over-year changes in duty (Section 122 introduction in Feb 2026 is the canonical example).
• Supplier price changes.
• Currency effects.

This lets you separate the controllable (negotiate freight, change suppliers) from the uncontrollable (regulatory changes).

Reconciliation to accounting

For finance and accounting purposes, the landed cost report feeds:

• Inventory valuation (cost basis for sold goods).
• Cost of goods sold calculations.
• Gross margin analysis.
• Customs duty expense account.
• Freight in account.
• Insurance expense account.

A well-structured report exports cleanly to your ERP or accounting system. Tag each line with the appropriate GL account.

How the calculator generates the report

The LandedFees calculator generates a PDF or CSV report with:

• Each duty layer broken out with the HTS chapter 99 code.
• Anti-stacking logic applied between Section 232 and 122.
• Freight and insurance breakouts.
• Per-SKU apportionment.
• Comparison to FOB unit cost.
• Notes on regulatory hooks (FDA, USDA, AD/CVD, etc.).

You can export the report to use it directly with your accounting system or as supporting documentation for your customs broker.

Related guides

• Incoterms 2020 vs Landed Cost: A Clear Guide
• How to Read a Commercial Invoice for Customs
• Commercial Invoice vs Packing List vs BoL
• How to Calculate Freight + Insurance
• FOB vs CIF vs DAP: Which Costs You More?
• Section 232 vs 301 vs 122: How US Tariffs Stack in 2026

Generate a landed cost report on the LandedFees calculator for your next shipment.