Inventory Import Cost - Unbelievably Low
Hey all - I've been developing a ski pant prototype with a new Chinese manufacturer I found on Alibaba and have been in the outerwear business for the last 15 years.
I calculated expected delivery cost for door to door (China to Colorado). For a $14,430 order composed of 200 units of ski pants (HTS 6203.43.11.10), my estimate of total cost to deliver the shipment to my front door was about $5,300.
I asked the Alibaba manufacturer for an estimate on DDP total cost. They quoted $600 delivered which included sea freight, customs clearance, import duties / taxes, and other related delivery costs. Although this is a fantastic price, it just doesn't seem believable.
Am I missing something? Any insight into this process would be helpful. My old manufacturer used to wrap everything into the per unit cost so I am completely new to the import process.
Here is how I calculated my figure:
| Rate | Cost | |
|---|---|---|
| Inventory - 200 units | $72.15 | $14,430 |
| MFN | 7.10% | $1,024.53 |
| List 4A | 7.5% | $1082.25 |
| Section 122 Placeholder* | 12.5% | $1,803.75 |
| MPF | 0.3464% | $49.99 |
| HMF | 0.125% | $18.04 |
| Broker Fee | $150 | |
| ISF Filling | $50 | |
| Cargo Insurance | $75 | |
| Entry Bond | $92 | |
| Destination Handling | $200 | |
| Delivery Accesorials | $150 | |
| Sea Freight | $600 | |
| Total door-to-door cost | $5,295.56 |
*My shipment lands November 15th. I know Section 122 expires July 24, but from what I could deduce, a similar tariff will takes its place at around the same rate.