How do you calculate annual import duty?

Multiply imported units by customs value per unit to get dutiable value, multiply by the effective duty rate, then add brokerage and bond cost. For 30,000 units at $12 customs value, a 25% rate, and $9,000 brokerage, exposure is $99,000 per year, or $3.30 per unit.

What is the effective duty rate?

It's the blended ad valorem percentage actually applied to customs value — base HTS duty plus any Section 301, antidumping, or countervailing duties stacked on top. It can differ sharply from the headline rate in the tariff schedule.

What is customs value based on?

Usually the transaction value — the price paid for the goods — adjusted per CBP rules. It typically excludes international freight and insurance for U.S. imports under FOB-style valuation, so it's lower than landed cost.

How much does a tariff increase cost per unit?

It scales directly with customs value. At a $12 customs value, each 10 percentage points of duty adds $1.20 per unit. The $3.30/unit here is driven mostly by the 25% rate on a relatively high customs value.

Duty cost vs landed cost — what's the difference?

Duty is just the tariff and clearance portion. Landed cost adds international freight, insurance, and inland transport. This calculator deliberately isolates duty so you can model tariff scenarios without the noise of freight swings.

Does brokerage and bond cost scale with volume?

Largely no — it's modeled as a fixed annual cost. Customs broker retainers, continuous bonds, and entry fees are mostly fixed, which is why they form the fixed adder rather than a per-unit charge.

Reshoring & Tariff Strategy calculator

Import Duty Scenario Cost Calculator

Import duty scenario cost estimates the total annual tariff and clearance burden on a part you bring across the border, plus the duty cost baked into each imported unit. Trade compliance teams, sourcing managers, and finance use it to model how a tariff change, a Section 301 action, or a shift in HTS classification hits landed cost. With duty rates on some Chinese goods stacking base plus punitive tariffs above 25%, the difference between scenarios can swing a sourcing decision by six figures a year. This tool isolates the duty and brokerage piece so you can stress-test rate changes against a reshoring or country-switch alternative.

What this calculator does

Models the annual import-duty exposure for a tariff scenario including the effective rate and fixed brokerage and bond costs.
A trade-compliance lead stress-tests a Section 301 rate change to see the duty hit on a product line and its per-unit impact.
It computes annual duty exposure as imported units times customs value times the effective duty rate, plus fixed brokerage and bond cost, and divides to a per-unit duty cost.

Formula used

Annual duty exposure ($) = imported units x customs value per unit x effective duty rate% + brokerage and bond
Duty cost per imported unit ($) = total duty exposure / imported units

Inputs explained

Annual import value units: Dutiable items imported under this HTS line per year
Customs value per unit: Declared dutiable value of each imported item
Effective duty rate: Combined tariff and Section 301/232 rate applied
Brokerage and bond cost: Annual customs brokerage, MPF, and bond fees

How to use the result

Use it when a tariff rate changes, when classifying a new part, or when comparing the duty burden of sourcing from different countries.
It uses a single blended effective duty rate; real entries can mix multiple HTS lines, antidumping/countervailing duties, and merchandise processing fees that this simplified model rolls into one rate.

Current U.S. benchmarks

Sourcing currencies as of 2026-07-02 (Federal Reserve H.10): 6.7886 CNY and 17.4524 MXN per USD. Landed-cost comparisons move with these daily rates.
U.S. iron and steel imports ran $2.1B in May 2026 (Census International Trade). The U.S. ran a trade deficit of $0.4B in the category that month. Import volumes are the pressure gauge behind tariff and reshoring decisions.

Common questions

How do you calculate annual import duty? Multiply imported units by customs value per unit to get dutiable value, multiply by the effective duty rate, then add brokerage and bond cost. For 30,000 units at $12 customs value, a 25% rate, and $9,000 brokerage, exposure is $99,000 per year, or $3.30 per unit.
What is the effective duty rate? It's the blended ad valorem percentage actually applied to customs value — base HTS duty plus any Section 301, antidumping, or countervailing duties stacked on top. It can differ sharply from the headline rate in the tariff schedule.
What is customs value based on? Usually the transaction value — the price paid for the goods — adjusted per CBP rules. It typically excludes international freight and insurance for U.S. imports under FOB-style valuation, so it's lower than landed cost.
How much does a tariff increase cost per unit? It scales directly with customs value. At a $12 customs value, each 10 percentage points of duty adds $1.20 per unit. The $3.30/unit here is driven mostly by the 25% rate on a relatively high customs value.
Duty cost vs landed cost — what's the difference? Duty is just the tariff and clearance portion. Landed cost adds international freight, insurance, and inland transport. This calculator deliberately isolates duty so you can model tariff scenarios without the noise of freight swings.

Last reviewed 2026-05-12.