How landed cost is calculated
Start from the customs value
Duty is charged on the customs value, which is usually the price paid for the goods. Many countries, the EU and the UK among them, add the cost of shipping and insurance to the border. The US and Canada value goods without the international freight. Calculate applies the right basis for the destination and shows the customs value it used.
Duty, then tax on top of duty
Duty rates come in three forms: a percentage of value (ad valorem), an amount per unit such as per kilogram or per pair (specific), or both together (compound). The rate depends on the tariff code, the origin and any trade agreement the goods qualify for.
Import VAT, GST or sales tax is then usually charged on the customs value plus the duty, so a higher duty also raises the tax. Customs processing fees are added on top. Calculate keeps each of these as a separate line, in the order customs applies them.
Thresholds and who collects
Many countries waive duty, tax or both below a de minimis value, and the threshold can depend on how the parcel travels and where it comes from. Some countries have their sellers collect tax at checkout instead of at the border. Calculate checks the threshold for the consignment and says who collects each charge: the border, the carrier or the seller.
Delivered duty paid or not
Under DDP terms the seller pays duty and tax and the customer pays nothing on delivery; under DAP the customer pays when the parcel arrives. Most cross-border shoppers expect the price at checkout to be the final price, so knowing the landed cost in advance is what makes DDP possible without losing money on every order.