Short answer: Landed cost is the product price plus international shipping, customs duty, import VAT, carrier or customs fees, and any destination handling fee needed to deliver the order. For EU-bound low-value parcels in 2026, the calculation must also account for the temporary EUR 3 customs duty per item category that began July 1, 2026.
Which charges belong in a landed-cost calculation?
- Product value and any dutiable adjustments
- International freight and insurance where the customs valuation rules require them
- Customs duty based on classification, origin, value, and destination
- Import VAT
- Carrier, customs-clearance, and destination handling fees
What changed for low-value EU parcels on July 1, 2026?
- The European Commission says a temporary flat customs duty of EUR 3 per item category applies to low-value goods under EUR 150 until July 1, 2028. Read the Commission guidance and legal text.
- The charge is applied per item category, not simply once per parcel. A multi-item order can therefore carry several flat-duty charges.
- Product identifiers become mandatory on the covered consignments from November 1, 2026, so clean product data matters as much as the arithmetic.
How should a Shopify brand show landed cost at checkout?
- Calculate from the actual SKU mix in the cart rather than a single blended percentage.
- Show one delivered-duty-paid total before payment, with the included charges stated plainly.
- Store the classification, origin, and calculation inputs used for the order so support and operations can explain the total later.
What should a free landed-cost audit check?
- Missing or placeholder HS codes
- Country-of-origin gaps or values copied from the fulfillment location
- EU and UK orders where customers paid charges on delivery
- SKUs whose margin changes materially after duty, VAT, freight, and fees
Questions buyers ask
Is landed cost the same as shipping cost?
No. Shipping is one input. Landed cost also includes customs duty, import VAT, and applicable carrier or destination fees.
Does the EUR 3 EU duty apply once per parcel?
The Commission guidance describes EUR 3 per item category in a low-value consignment, so a parcel can carry more than one charge.