The factory price on a supplier's quote is never what a dining table actually costs you. By the time it clears US customs and reaches your warehouse, freight, duty, and a stack of smaller fees can add a meaningful percentage on top of the FOB or EXW price - and if you've priced your retail or wholesale margin off the factory quote alone, that gap comes straight out of your profit.
Landed cost is the number that actually matters for pricing decisions. This guide walks through exactly what it includes, how to calculate it step by step, and a worked example using a full container of dining tables, so you can quote your own customers with real numbers instead of a rough guess.
What Is Landed Cost, and Why the Factory Price Isn't the Real Price
Landed cost is the total cost of getting a product from the factory floor to your warehouse door - the product price plus freight, insurance, import duty, and every customs and handling fee in between. It's the number you should use to calculate margin, not the FOB or EXW price on the supplier invoice.
Two buyers can get quoted the exact same factory price for the exact same dining table and end up with meaningfully different landed costs, depending on the Incoterm the quote was based on, the freight rate they negotiate, and how efficiently their container is loaded. Comparing supplier quotes on factory price alone is comparing incomplete numbers — the useful comparison is always landed cost per unit.
Landed Cost Formula: Every Component to Include
| Component | What It Covers |
|---|---|
| Product cost (FOB or EXW) | The manufacturer's price for the goods themselves |
| Inland freight to port (if EXW) | Trucking from the factory to the port of export |
| Ocean freight | Container shipping cost from the Indian port to the US port of entry |
| Marine cargo insurance | Coverage against loss or damage in transit |
| Import duty | Customs duty based on the product's HTS classification and country of origin |
| Merchandise Processing Fee (MPF) | A US customs fee applied to most formal entries |
| Harbor Maintenance Fee (HMF) | A US customs fee for ocean freight entries |
| Customs brokerage fee | Your broker's fee for filing the entry and clearing the shipment |
| Inland trucking / drayage | Moving the container from the US port to your warehouse |
| Bond cost | Customs bond required for formal entry, often an annual cost spread across shipments |
The sections below walk through the components that trip buyers up most often: import duty, and the gap between a quoted factory price and what you actually pay.
Import Duty on Dining Furniture from India: What Actually Applies
Solid wood dining furniture is generally classified under HTS Chapter 94 - most non-upholstered wooden dining tables and chairs fall under headings like 9403.30, 9403.50, or 9403.60, which commonly carry a 0% base Most Favored Nation (MFN) duty rate. That's the starting point, but it's rarely the whole story in 2026.
On top of the base rate, country-specific tariff programs can apply and stack on top of the base duty. As of 2026, India-origin furniture generally falls under a separate country-specific tariff tier that applies in addition to the base rate - a different tier applies to different countries of origin. Section 232 tariffs, by contrast, are targeted specifically at upholstered wooden furniture (HTS 9401.61) and kitchen cabinets and vanities (HTS 9403.40), not at plain solid wood dining tables and chairs - so a standard solid wood dining set typically doesn't fall under that program unless it includes upholstered seating.
This is the part of landed cost that changes the most and the fastest. Tariff programs, exclusion lists, and country-specific rates have shifted multiple times over the past year, sometimes with only weeks of notice. Before finalizing a quote or a purchase order, confirm the current duty stack for your product's exact HTS classification with a licensed customs broker or against the official Harmonized Tariff Schedule - don't rely on a rate you saw in an article or a previous shipment's paperwork, since it may no longer be current.
Worked Example: Calculating Landed Cost for a 40ft Container of Dining Tables
Here's how the math comes together for an illustrative order - 100 solid wood dining tables shipped FOB from an Indian port in a 40ft container. The dollar figures below are for illustration only; substitute your own supplier quote, freight rate, and current duty rate.
| Cost Component | Illustrative Amount |
|---|---|
| Product cost (FOB), 100 units | $18,000 |
| Ocean freight, 40ft container | $3,200 |
| Marine cargo insurance (~0.5% of cargo value) | $90 |
| Import duty (illustrative rate - verify current rate) | Varies by current HTS duty stack |
| Merchandise Processing Fee | ~0.3464% of value, subject to a minimum and maximum |
| Harbor Maintenance Fee | ~0.125% of cargo value |
| Customs brokerage fee | $150–$300 per entry (typical range) |
| Inland trucking from port to warehouse | $400–$800 (varies by distance) |
Add every line together and divide by 100 units to get your landed cost per table. That per-unit number - not the $180 FOB price per table - is what you should be using to set your resale price and calculate margin.
Landed Cost vs. FOB Price: Why Comparing Quotes on Price Alone Is a Mistake
A supplier quoting a lower FOB price isn't necessarily offering a better deal once landed cost is factored in. Freight rates, container utilization, and even how a manufacturer packs a container (see our guide on custom solid wood dining table manufacturing for how table shape affects container loading) all move the freight-per-unit number, which can outweigh a small difference in factory price.
The only apples-to-apples comparison between two supplier quotes is landed cost per unit - not the number on the front of the invoice.
How Incoterms Change What's Already Included in Your Quoted Price
Whether a quote is FOB, EXW, or CIF determines which of the components above are already baked into the factory price versus what you need to add yourself. An EXW quote, for example, doesn't include inland freight to the port, while a CIF quote already includes ocean freight and insurance. Getting this wrong is one of the most common ways buyers underestimate landed cost - we'll cover exactly how each Incoterm shifts these costs in an upcoming guide comparing FOB, CIF, and EXW for dining furniture importers.
Common Mistakes When Estimating Landed Cost
Using last year's duty rate. Tariff programs affecting furniture imports have changed multiple times recently. A rate that was accurate six months ago may not be accurate today.
Forgetting the smaller customs fees. MPF and HMF are individually small percentages, but they apply to the full customs value and add up across a large order - they're easy to leave out of a quick estimate.
Not accounting for container utilization. If a container isn't loaded efficiently, freight cost per unit goes up even though the total freight bill stays the same - see our guide on custom manufacturing and container loading for how table and chair shape affects this.
Treating the customs broker's number as optional. A broker's landed cost estimate, based on your product's exact HTS classification, is more reliable than any general industry figure - including the illustrative ranges in this guide.
Frequently Asked Questions
What is landed cost in importing?
Landed cost is the total cost of getting a product from the factory to your warehouse — the product price plus freight, insurance, import duty, and all customs and handling fees. It's the figure that should be used for pricing and margin calculations, not the factory or FOB price alone.
Does landed cost include customs duty?
Yes. Import duty, along with Merchandise Processing Fee and Harbor Maintenance Fee, is one of the core components of landed cost, alongside product cost, freight, insurance, brokerage fees, and inland trucking.
What is the current import duty on wooden dining furniture from India?
Most non-upholstered wooden dining furniture falls under HTS Chapter 94 with a 0% base MFN duty rate, but country-specific tariff programs can add to that base rate, and these programs have changed multiple times in the past year. Always confirm the current combined rate for your product's exact HTS classification with a licensed customs broker before finalizing pricing - don't rely on a rate from a previous order or a general article.
How do I calculate landed cost per unit?
Add every cost component - product cost, freight, insurance, duty, MPF, HMF, brokerage, and inland trucking - for the full shipment, then divide by the total number of units in that shipment. This gives you a true per-unit cost to use for pricing, rather than dividing the factory price alone.
Should I ask my supplier or a customs broker for landed cost numbers?
Both, for different pieces. Your supplier can confirm FOB or EXW pricing and freight-related details tied to how the order is packed and shipped. A licensed customs broker is the right source for current duty rates, HTS classification, and the exact customs fees that apply to your specific shipment.
Price With Real Numbers, Not a Rough Estimate
Landed cost is the number that actually determines whether an order is profitable, and it's built from more moving pieces than most buyers account for on a first pass. Building the full formula into your sourcing process - rather than pricing off the factory quote alone - is what protects your margin once a container actually clears customs.
If you're working on a landed cost estimate for a dining furniture order, contact our team for a current FOB quote and container-loading details specific to your product mix, or browse our solid wood dining tables collection to start building your order.