A landed cost estimate API is a service that lets an ERP or storefront send product, origin and value data and receive estimated duties, taxes and fees for a shipment.
Freight is only one line of what an import costs. Duty, import tax, customs fees and bond charges can exceed the transport bill, and a buyer who sees only the freight figure underprices the product. This guide explains what a landed cost estimate calculates, which inputs decide its accuracy, how duty and tax sit next to a freight quote, and why the estimate and the final customs entry rarely match to the cent. For the freight side of the connection, start with the ExFreight freight API; for the full formulas, see how to calculate landed cost.
Key takeaways
- A landed cost estimate is only as good as three inputs: the tariff classification, the country of origin and the customs value.
- Freight quotes and duty estimates answer different questions, so keep them as separate line items with separate sources.
- The final figure is set at customs entry; build a variance check between estimate and entry summary into your process.
What a landed cost estimate API calculates
Landed cost is the total cost of getting goods to the buyer’s door: product value, international freight, insurance, duty, import taxes and the customs fees charged on entry. An estimate API returns those charges before the goods ship, so a buyer can price, choose a lane or decide on Incoterms with the full number in view. The core output is a set of line items, each with its own basis.
- Duty: the tariff rate for the classification and origin, applied to the customs value. In the U.S., additional duties (for example Section 301 or Section 232 measures) can stack on top of the general rate.
- Import tax: VAT or GST in most destination countries, usually charged on value plus freight plus duty. The U.S. has no federal import VAT.
- Customs fees: for U.S. formal entries, the Merchandise Processing Fee (MPF), plus the Harbor Maintenance Fee (HMF) on ocean imports.
- Bond: a customs bond is required for formal entries; without a continuous bond, a single entry bond is bought per shipment.
Low-value shipments no longer escape the calculation. CBP states that de minimis treatment is suspended for merchandise valued at $800 or less, across all modes, so even small consignments now carry duty and fees.
Three teams use the output, each for a different decision. Procurement compares suppliers on landed cost rather than unit price, because a cheaper factory in a higher-duty origin can lose the comparison. Pricing sets margins on the delivered cost of a SKU, not its purchase price. Logistics chooses Incoterms: on a DAP sale the buyer pays destination duty and tax, while on DDP the seller carries them and must price them in before the order is accepted.
Inputs: HTS code, country of origin and customs value
Any landed cost engine, whether a commercial API or a spreadsheet, depends on the same core parameters. Missing or vague inputs do not stop the calculation; they make it wrong without warning.

| Field | Example | Why it matters |
|---|---|---|
| HTS code (import) or Schedule B (export) | 8481.80.xxxx | Sets the duty rate; a wrong subheading means a wrong duty |
| Country of origin | DE | Where the goods were made, not where they ship from; drives preferential rates and additional duties |
| Customs value and currency | 40,000 USD | The base for ad valorem duty, MPF and HMF |
| Quantity and unit of measure | 800 units | Needed for specific or compound duty rates and per-unit landed cost |
| Destination country and ship-to address | US, 30303 | Selects the tariff schedule and tax rules |
| Mode of transport | Ocean LCL | HMF applies to ocean imports, not air |
| Freight and insurance cost | 2,400 USD | Included in the tax base in CIF-basis countries; excluded from U.S. customs value |
Classification is where most estimates fail. A ten-digit HTS number is not a product description, and two similar valves can sit under subheadings with different rates. Use the HTS classification guide to confirm the code before you store it on the SKU, and record the ruling or reasoning next to it. Operator tip: store country of origin at the SKU and supplier level, not the order level. A distributor that buys the same part from two factories has two origins and possibly two duty outcomes.
Duty and tax inside a freight quote
A freight quote and a duty estimate answer different questions. The freight quote prices transport and the services attached to it; the duty estimate prices what the government collects. ExFreight keeps that line clear. On U.S. imports, a basic customs entry is included in door-to-door rates; duties, taxes, bonds, MPF and HMF are billed separately (a truck-only move from Canada is the exception, where the entry is an additional fee). For the estimate itself, ExFreight’s Global Duty and Tax Calculator runs on the ExFreight platform during booking: commodity details, HTS or Schedule B code and commercial value produce an estimate of duty and tax for over 150 countries, and for ocean imports into the U.S. it also shows the surety bond fee, MPF and HMF.
What ExFreight’s API covers today
The APIs are available upon request, with a test environment and assistance. Duty and tax estimates are a feature of the ExFreight platform, used during online booking. See how the ExFreight freight API works
Worked example: ocean LCL import into the U.S.
An importer brings in 800 valve assemblies from Germany, customs value $40,000. Assume an illustrative general duty rate of 3.4% and no additional duties; the importer has no continuous bond. The door-to-door ocean LCL freight figure used here is also illustrative.
- Product value: $40,000.00
- Freight, door-to-door (illustrative): $2,400.00
- Duty, 3.4% of $40,000: $1,360.00
- MPF, 0.3464% of $40,000: $138.56 (inside the FY2027 minimum of $34.58 and maximum of $670.86 set in the Federal Register notice)
- HMF, 0.125% of $40,000: $50.00 (ocean only)
- Single entry bond at ExFreight’s stated $5.50 per $1,000 of value, minimum $55: $220.00
- Landed cost: $44,168.56, or $55.21 per unit against a $50.00 purchase price
Two lessons sit in that example. First, the customs charges ($1,768.56) are close to three quarters of the freight. Second, U.S. customs value excludes international freight, while most VAT countries tax on a CIF basis. Shipping the same goods the other way, to a buyer in Germany, the import VAT base would include freight, insurance and duty, so the tax line grows with the freight bill. The customs help center lists which charges ExFreight’s rates include and which are billed separately, including bonds and Canadian entries.
Estimate vs final entry
The estimate is a planning number. The final figure is fixed when the entry is filed and liquidated, and several things move it between quote and arrival.
| Landed cost estimate | Final customs entry | |
|---|---|---|
| When it exists | At quote or booking | At entry filing, adjusted at liquidation |
| Classification | The code you supplied | The code filed and accepted, which may differ after review |
| Value | Planned commercial value | Transaction value on the commercial invoice |
| Tariff rates | Rates in force when estimated | Rates in force on the applicable entry date |
| Fees | Calculated from the planned value | Calculated from the declared value, with minimums and maximums applied |
| Freight | Quoted rate | Invoiced rate, re-invoiced if actual details differ |
Duty and tax figures are estimates, and freight quotes are informational and subject to change; shipments can be re-invoiced if actual details differ. Tariff measures can change between booking and arrival. Treat the estimate as a budget line and reconcile it against the entry summary and the freight invoice for each shipment.
Pitfalls to design out of your process:
- Origin confused with ship-from. Goods made in Vietnam and shipped from Rotterdam carry Vietnamese origin.
- Stale tariff tables. An estimate engine that caches rates for a quarter will miss mid-quarter tariff actions.
- Per-order instead of per-line values. Duty is calculated per HTS line; one blended value per order breaks the math.
- Amendments after payment. ExFreight notes an approximate 7-day window to amend before duty and tax payment is processed; once duties are paid to CBP, refunds follow the customs process.
The practical model: keep the HTS code, origin and value on the SKU; pull freight from a quote API; calculate or look up duty and tax on the platform; and store the estimate next to the final entry for each shipment so your margins learn from the variance.
Freight API series
Frequently asked questions
What is a landed cost estimate API?
A landed cost estimate API is a service that takes product, origin, destination and value data and returns estimated duties, import taxes and customs fees for a shipment. Combined with a freight quote, it shows the total delivered cost before the goods ship, so buyers can price products, compare suppliers and choose Incoterms.
Does a freight quote include duties and taxes?
Usually not. A freight quote prices transport and related services. With ExFreight, a basic customs entry is included in door-to-door rates on U.S. imports, while duties, taxes, bonds, MPF and HMF are billed separately. The ExFreight platform provides duty and tax estimates for over 150 countries during online booking.
How accurate is a duty and tax estimate?
An estimate is as accurate as its inputs. The HTS code, country of origin and customs value drive most of the result, and tariff measures can change between booking and arrival. Treat the estimate as a budget figure and reconcile it against the filed entry summary and the freight invoice for each shipment.
Which fees does CBP charge on a formal entry?
On U.S. formal entries, CBP charges the Merchandise Processing Fee at 0.3464% of value, with a fiscal year 2027 minimum of $34.58 and maximum of $670.86. Ocean imports also pay the Harbor Maintenance Fee at 0.125% of value. Duties, any additional tariffs and bond costs come on top.




