DDP pricing only works if you know your landed cost per piece. Below is a step-by-step method with a worked example. The rates are illustrative assumptions, not current tariffs — replace them with confirmed rates for your products.
Step 1 — Establish the customs value
US customs value is normally the transaction value: the price paid for the goods, generally excluding international freight and insurance. Example: 200 dining tables × USD 150 = USD 30,000.
Step 2 — Apply each duty layer
| Item | Assumed rate | Amount (USD) |
|---|---|---|
| Base HTS duty | 0% (assumption) | 0 |
| Additional duty by origin | X% (check current) | 30,000 × X% |
| MPF | 0.3464% | ≈ 104 |
| HMF (ocean) | 0.125% | 37.50 |
If X were 20%, additional duty would be USD 6,000. Section 232 items or AD/CVD would be calculated separately — see the duty layers.
Step 3 — Add logistics costs
- Origin: trucking, export clearance, terminal charges
- Ocean freight for one 40HC (varies by season — see ocean rates)
- Destination: terminal, chassis, customs brokerage, bond, ISF
- Delivery: drayage to warehouse, or LTL / home delivery fees
Step 4 — Divide by pieces
Landed cost per piece = (product cost + all duties and fees + all logistics costs) ÷ number of pieces. Improving the load from 200 to 240 tables per container lowers the logistics part of each table by about 17% — see container loading tips.
Step 5 — Add a risk buffer
Include a margin for inspection, storage or tariff changes between quote and shipment, or agree a tariff-adjustment clause with your buyer.