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LandedCost
Landed cost for

Landed cost for Tools & hardware importers

Tools and hardware ship heavy and dense, so freight and duty can quietly outweigh a thin per-unit margin. Cost every SKU landed before you price it on the shelf.

Calculate your landed cost

What quietly eats your margin

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Dense, heavy goods make freight per unit far higher than for light categories — a full carton of fixings can cost more to ship than to buy.
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Mixed shipments span many commodity codes, so a single blended duty guess hides big per-line differences between hand tools, power tools and accessories.
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Corded and cordless power tools carry battery and motor components that change both freight handling and the applicable code.
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Low-value, high-count SKUs like screws and bits make small per-unit costing errors add up fast across thousands of pieces.

How LandedCost helps

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Splits freight across each SKU by weight and volume so dense hardware carries its true share of the container cost.
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Lets you cost each commodity code separately instead of averaging duty across an unrelated product mix.
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Shows the real per-unit landed figure so you can hold margin on high-count, low-value lines.

Illustrative example

Illustrative example — your rates depend on your product and destination. All figures in USD.

An illustrative 2,000-unit order of cordless drills2,000 unitsCost build-up
Goods (FOB)$40,000
Freight & insurance$6,000
Duty (illustrative)$2,000
Subtotal — goods, freight & duty$48,000
Per unit (before import tax)$24.00

This subtotal covers goods, freight and duty only. Import tax (VAT/GST) and any clearance, broker or handling fees apply on top and are modelled separately — the calculator adds them for your destination. Duty shown is illustrative; look up your real rate via the HS code.

How import costs work, wherever you sell

Last reviewed: 16 July 2026

United Kingdom

UK
Consumption tax
Import VAT at 20% (standard rate), charged on the customs value plus duty plus incidental costs to the UK border. VAT-registered importers can defer it via postponed VAT accounting.
Duty basis
CIF — the customs value includes freight and insurance to the UK point of entry.
De minimis
Consignments of £135 or less: no customs duty, and import VAT is collected at the point of sale. Above £135: duty and import VAT apply at the border.
HM Revenue & Customs (HMRC) — UK Integrated Online Tariff

UK low-value import rules are under review for 2026–2028; the £135 threshold is in force as of July 2026.

European Union

EU
Consumption tax
Import VAT at the destination country's standard rate — from 17% (Luxembourg) to 27% (Hungary), e.g. Germany 19%, France 20%, Spain/Netherlands 21%. Charged on the CIF value plus duty.
Duty basis
CIF — the customs value includes freight and insurance to the first EU point of entry.
De minimis
As of 1 July 2026 the €150 duty-free threshold was removed: low-value items (≤ €150) instead carry a temporary flat customs duty of €3 per item until 2028. Import VAT still applies — sellers can collect it at checkout via IOSS for consignments ≤ €150.
European Commission — DG Taxation & Customs Union (TARIC)

VAT rates are set per member state and change periodically; the €3 flat-duty regime is newly in force (1 July 2026) — check the Commission for operational detail.

United States

US
Consumption tax
No VAT. State and local sales tax may apply at retail (it varies by state, and some states have none) — it is separate from, and not collected with, import duty.
Duty basis
FOB / transaction value — the price paid for the goods, excluding international freight and insurance (unlike the UK/EU CIF basis).
De minimis
The $800 de minimis exemption is currently suspended (as of July 2026): shipments of any value, from any country, by any mode are subject to applicable duties, taxes and fees. This is volatile — check CBP for the live position before relying on it.
U.S. Customs and Border Protection (CBP) / USITC (HTSUS)

US de minimis was suspended by executive order (Aug 2025, continued Feb 2026) and made indefinite by CBP interim rules in June 2026; additional Section 301 tariffs apply to many Chinese goods. Rates change frequently — verify with CBP/USTR.

Canada

CA
Consumption tax
GST at 5% on the duty-paid value (customs value plus duty); in HST provinces the combined rate is higher — Ontario 13%, Nova Scotia 14%, New Brunswick / Newfoundland & Labrador / PEI 15%.
Duty basis
Value for duty — normally the transaction value of the goods.
De minimis
General and postal shipments: CAD $20. Courier shipments from the US or Mexico (CUSMA): duty-free up to CAD $150, and free of tax up to CAD $40 (the $40–$150 band is duty-free but taxable).
Canada Border Services Agency (CBSA)

Nova Scotia's HST fell to 14% on 1 April 2025; de-minimis reform is politically live — re-check CBSA.

Australia

AU
Consumption tax
GST at 10% on the Value of the Taxable Importation (customs value + duty + international transport & insurance).
Duty basis
Customs value — normally the transaction value of the goods.
De minimis
Goods with a customs value of AUD $1,000 or less clear the border free of duty and border GST — but GST is generally collected at checkout under the low-value imported goods scheme (alcohol and tobacco are always taxed). Above AUD $1,000: duty and GST apply at the border.

The rules behind every landed cost

Your HS code sets your duty rate

Goods are classified with the Harmonized System (HS), maintained by the World Customs Organization. The first six digits are the same in 200+ countries; each country adds further digits, and that fuller commodity code determines the duty rate that applies. Look yours up before you cost a shipment.

Look up HS codes & duty rates
Incoterms decide who pays what

Whether the price you were quoted includes freight, insurance and clearance — and where risk passes to you — is governed by the Incoterms 2020 rules from the ICC. The term you agree changes your landed cost.

Compare Incoterms
Duty is charged on your customs value

Most countries value goods for duty using the WTO transaction-value method — the price actually paid for the goods, with set adjustments. Note the basis differs by market: the UK and EU use CIF (freight and insurance included), while the US uses an FOB basis (they're excluded).

WTO customs valuation

Tools & hardware importers — FAQ

Why is freight such a big part of my tool costs?
Tools and hardware are dense and heavy, so a container fills up by weight long before it fills up by volume. That pushes freight per unit higher than for bulky-but-light categories, which is why it belongs in every per-unit costing rather than a flat add-on at the end.
Do power tools and hand tools use the same duty rate?
Not usually — they fall under different commodity codes, and cordless tools with batteries can differ again. Look each one up on the /hs-codes page rather than applying a single blended rate across a mixed shipment.

Related guides

Landed cost for Tools & hardware importers

Know your real cost per unit before you order.

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