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Calculation methodology

See where the data comes from and how each number is produced.

LandedIQ separates classification, duty programs, import fees, freight allocation, landed cost and margin calculations so the result can be reviewed instead of treated as a black box.

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Official data sources

Base HTS lines and general/MFN ratesLandedIQ imports the official U.S. International Trade Commission HTS export. The catalog includes 10-digit tariff lines, descriptions and the published general-rate text.
Section 301 list coverageChina Section 301 coverage is derived from the official HTS Chapter 99 publication, including U.S. note 20 and the corresponding 9903.88 provisions.
Additional-duty program ledgerAdditional programs are stored separately by authority, origin scope, coverage, effective dates, rate behavior and exclusions so they can be audited independently of MFN.
Import fee settingsMPF, HMF and their configured minimum or maximum rules are retrieved for the shipment’s selected effective date.

Government publications remain the underlying authority. LandedIQ transforms those records into an estimate and does not replace the official tariff schedule, a customs ruling or professional advice.

Current data coverage

Supported nowAd valorem general/MFN rates, enumerated Section 301 lists, effective-date program logic, ocean HMF, configured MPF caps, freight allocation and SKU-level margin calculations.
May remain unresolvedSpecific or compound duties, narrative product scopes, certain later Section 301 review increases, unconfirmed exclusions and other programs without complete machine-reviewable coverage.
Not silently treated as zeroWhen an applicable program is unresolved, affected duty, landed cost, margin and recommended price remain unresolved instead of being presented as confirmed 0%.
Human review requiredModel-suggested HTS codes are marked unreviewed until the user confirms a candidate or enters a code manually.

1. Required inputs

A
Product inputsSKU, product description, unit cost, units, origin country, optional weight, current selling price and confirmed or suggested HTS code.
B
Shipment inputsFreight, insurance, ocean or air mode, freight-allocation basis, target margin, channel fee and the rate effective date.

2. Duty stack

The engine resolves the base MFN rate and additional duty programs using the normalized HTS code, country of origin and selected effective date. Additive programs are combined; programs defined as a total-rate top-up are applied as a cap adjustment rather than simply added again.

total duty rate = base MFN + applicable additive programs, adjusted by any top-up-to-total rule

If coverage is unresolved, LandedIQ does not silently turn that uncertainty into a confirmed 0%. The affected duty, landed cost, margin and recommended price remain unresolved until classification or program scope is confirmed.

3. Duty and shipment fees

duty per unit = unit cost × total duty rate

MPF is calculated at shipment level using the configured rate and minimum/maximum caps, then allocated by product value. HMF is applied to ocean shipments and allocated by value.

4. Freight allocation

Freight and insurance are allocated by shipment value or weight. Weight allocation is used only when every SKU has valid weight data; otherwise the engine falls back to value allocation and issues a warning.

freight per unit = (freight + insurance) × SKU allocation share ÷ SKU units

5. Landed cost

landed cost = unit cost + duty + allocated freight/insurance + MPF + HMF

The output is calculated per SKU and per unit. Shipment totals identify whether any SKU remains unresolved so a partial result is not mistaken for a complete landed-cost total.

6. True margin

true margin = (selling price − landed cost − selling price × channel fee) ÷ selling price

Channel fees are deducted as a percentage of selling price before the remaining margin is calculated.

7. Recommended price

recommended price = landed cost ÷ (1 − target margin − channel fee)

If target margin plus channel fee reaches or exceeds 100%, a recommended price cannot be calculated.

Important limitations

LandedIQ estimates do not include every possible import obligation. Antidumping and countervailing duties, quotas, product-specific agency requirements, broker charges, state or local taxes, inland delivery, storage, demurrage and unconfirmed exclusions may require separate review. Suggested HTS classifications must be confirmed by the importer or a qualified customs professional.

Data corrections and support

Potential data errors are reviewed by the LandedIQ operating team. Include the HTS code, origin country, effective date, product description and the result you believe requires correction. A report does not create a binding tariff determination, but correction reports help improve the beta ledger and coverage.

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