Reshoring & Tariff Strategy worked example

Import Duty Scenario Cost at 29% effective duty rate: a worked example

Push effective duty rate up to 29% and the picture changes. This example computes every intermediate figure at that operating point. 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.

The inputs for this scenario

  • Annual import value units: 30,000 units/yr (unchanged)
  • Customs value per unit: 12 $/unit (unchanged)
  • Effective duty rate: 29 % (raised for this scenario; the documented default is 25)
  • Brokerage and bond cost: 9,000 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Annual duty exposure ($) = imported units x customs value per unit x effective duty rate% + brokerage and bond) to the inputs above produces each figure below.
  • At this operating point the engine returns 113,400 $ for total import duty scenario cost, the number this scenario is built around.
  • At this operating point the engine returns 3.78 $ / piece for import duty scenario cost per unit.
  • At this operating point the engine returns 104,400 $ for variable import duty scenario cost.
  • At this operating point the engine returns 9,000 $ for fixed import duty scenario cost adder.

How this compares with the baseline

  • Against the tool's baseline example, where effective duty rate sits at 25% and the headline result is 99,000 $, this scenario comes in 14.55% above the baseline at 113,400 $.
  • 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. The value of this scenario is the size of the gap it exposes: that gap, priced out over a year, is the budget you can justify spending to close it.

Results at a glance

  • Total import duty scenario cost: 113,400 $ (headline result)
  • Import duty scenario cost per unit: 3.78 $ / piece
  • Variable import duty scenario cost: 104,400 $
  • Fixed import duty scenario cost adder: 9,000 $

Run it with your numbers

  • Every input above is editable in the live Import Duty Scenario Cost calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.