The price on a factory quote is line one of your cost, not the total. For metal parts made in China, the number that matters is the landed cost: what you have paid by the time the parts are on your dock, cleared and usable.
Landed cost = part price + tooling / NRE + secondary finishing + inspection and documentation + packaging + inland trucking + international freight + insurance + import duties + customs fees + brokerage + final-mile delivery.
We are a sourcing and freight forwarder in Shenzhen, not a customs broker and not a factory. The notes below describe the structure of the calculation and where each figure comes from. For any binding rate, use a licensed broker in the destination country — duty policy on China-origin metal goods moved repeatedly through 2025 and 2026, and a percentage published in a blog post is a planning baseline at best.
The landed cost, line by line
| Line item | Who usually quotes it | What buyers miss |
|---|---|---|
| Part price at each quantity tier | Factory | Whether tooling and setup are inside the unit price or billed separately. |
| Tooling, fixtures, programming (NRE) | Factory / toolroom | Amortised tooling is part of the dutiable value, not a free add-on. |
| Finishing and secondary operations | Factory or subcontractor | Anodising, plating, passivation and powder coat are frequently quoted as optional. |
| Inspection and documents | Factory / QC provider | First article reports, CMM time, material certificates. |
| Packaging and inland trucking | Factory / forwarder | Rust prevention, pallets, factory-to-port drayage. |
| International freight and insurance | Forwarder | Chargeable weight, fuel surcharges, port and terminal fees. |
| Import duties | Broker, based on HTS code | Usually the largest unbudgeted variable. |
| Customs fees and brokerage | Broker / carrier | Entry filing, ISF, bond, merchandise processing fee, harbour maintenance fee on ocean freight. |
| Final-mile delivery | Forwarder / carrier | Drayage, appointment, storage if clearance is delayed. |
Then add a line most spreadsheets leave out: the cost of waiting. Air freight costs more per kilo but releases inventory weeks earlier. Ocean costs less per kilo and ties up cash for the transit. Which one wins depends on your margin and your launch date, not on the freight quote alone.
Why the HTS code matters more than the factory price
Duties attach to country of origin and the HTS classification, not to how the part was made. Two parts produced on the same CNC machine can land in different duty lanes depending on what they are, what they are made of and how they are declared. A machined aluminium bracket classified as a machinery component is treated differently from an aluminium article classified under a metal heading.
Practical consequences:
- Confirm the 10-digit HTS code with a licensed broker before the shipment moves, not at the port. Ask for the reasoning in writing.
- If classification is genuinely ambiguous, a binding ruling from the destination customs authority is worth the paperwork.
- Check whether any product-specific exclusion currently applies to your code, and note its expiry date.
- Ask whether the metal content (steel, aluminium, copper) triggers an additional layer on top of the general China-origin measures.
- Never accept a suggestion to under-declare value. It is not a cost optimisation; it is a compliance problem that follows the importer, not the supplier.
The same discipline applies to the commercial invoice. Part description, quantity, unit value, country of origin and HTS code should all be there, and they should match the packing list.
The duty layers to check before you approve a PO
China-origin machined and stamped parts can be hit by several separate layers at once. Each has its own legal basis and reporting code, so check them one at a time rather than applying a single headline rate:
- Normal (MFN) duty — set by the HTS code, applies to every import.
- Section 301 measures — additional duties on listed China-origin industrial goods; the list and active exclusions are maintained by USTR.
- Section 232 measures on steel, aluminium and copper content — relevant where the part is classified under a metal heading or listed as a derivative article.
- Other temporary trade measures — these have been introduced, adjusted and withdrawn on short notice in this period. Ask your broker what is in force today for your code.
- Customs processing fees — merchandise processing fee, and harbour maintenance fee for ocean shipments.
- Broker and filing costs — entry, ISF filing, bond, document fees.
Two changes worth building into your process. First, the old low-value de minimis shortcut for China-origin shipments is gone: even a single prototype sample now needs full customs processing and a 10-digit code. Budget for that when you order samples, or the first invoice of the project will surprise you. Second, because the layers stack, a factory price that looks 40% lower than a domestic quote can shrink to a small advantage once the full duty stack and freight are in. Model landed cost before you commit to offshore production, not after delivery.
We are deliberately not printing rates here. They vary by 10-digit code, by material and by month, and a stale number on a webpage is worse than no number. Ask your broker for the current rate on your specific code and put that figure into your own worksheet.
DDP, DAP or FOB: who carries the duty risk
Incoterms decide who clears customs and who pays. For metal parts, three terms cover almost every order we handle:
| Term | Freight | Duties and clearance | What the buyer still handles | Best fit |
|---|---|---|---|---|
| DDP (Delivered Duty Paid) | Supplier / forwarder | Supplier / forwarder | Nothing at the border; one all-in price | First-time importers, anyone without a broker |
| DAP (formerly DDU) | Supplier / forwarder | Buyer | Duty payment, broker, clearance, upfront cash | Buyers with their own broker who want duty visibility |
| FOB | Buyer | Buyer | Freight booking, insurance, clearance, final mile | Experienced importers with contracted carriers |
DDP is the simplest budgeting tool, but only if the quote is specific. Watch for these:
- Duties and taxes are not explicitly listed as included.
- The supplier cannot name the broker handling clearance.
- The Incoterm is missing from the PO or contract.
- A customs bill arrives after delivery.
- Someone suggests lowering the declared value to reduce duty.
Any one of those means you are not actually buying DDP. Our own DDP quotes state the duty assumption and the destination up front, so the number on the quote is the number on the invoice.
Choose the freight mode by weight and deadline
Metal parts are dense, so the decision is mostly about shipment weight, the order stage and how hard your deadline is:
| Mode | Typical stage | What to check |
|---|---|---|
| Express courier | Prototypes, samples, urgent small batches | Fast and simple, but charged on chargeable weight; dimensional weight can beat actual weight once protective packaging is added. |
| Air freight | Mid-volume orders with a fixed launch date | Airport-to-airport vs door-to-door, and who handles clearance on arrival. |
| Sea LCL | Production runs that share a container | Fixed port and consolidation charges make small LCL shipments poor value. |
| Sea FCL | Repeat high-volume orders | Container loading supervision, palletisation and transit buffer in your inventory plan. |
Carriers charge on the higher of actual weight and dimensional weight. Metal parts usually lose that comparison on actual weight, but bulky crating can flip it — confirm the chargeable weight and the divisor your carrier uses before you approve the method. Ask for rates from a licensed forwarder for your lane; published benchmark rates go stale quickly.
Documents that keep a shipment out of trouble
- Commercial invoice — description, quantity, unit value, origin, HTS code.
- Packing list — itemised by part number, weight and dimensions.
- Bill of lading or airway bill — issued by the carrier.
- Certificate of origin — needed for origin verification or preferential duty claims.
- Material certifications — EN 10204 3.1 mill test reports, and any industry-specific traceability for aerospace, medical or defence-adjacent parts.
Ask for the document set at the RFQ stage, not when the goods are already on the water. If the supplier cannot produce a mill certificate, that is information about the supplier.
A worksheet to fill in before you sign
- Confirmed 10-digit HTS code and the broker who classified it.
- Current duty layers for that code, with the date checked.
- Incoterm written into the PO.
- Itemised quote: part, tooling, finishing, inspection, packaging, inland.
- Freight mode, chargeable weight and insurance.
- Customs fees, broker fees and final-mile delivery.
- Total landed cost per part at each quantity tier.
- Comparison against your domestic alternative, using the same drawing and tolerance.
Eight lines. They turn “China is cheaper” into a decision you can defend.
Frequently asked questions
What is included in the landed cost of CNC parts from China?
Part price, tooling and setup, secondary finishing, inspection and documentation, packaging, inland trucking, international freight and insurance, import duties, customs processing and broker fees, and final-mile delivery. The factory quote normally covers only the first few of those.
How do I find the right HTS code for machined metal parts?
Classification depends on what the part is and what it is made of, not on the machining process. Give your licensed customs broker the drawing, material grade and end use; ask for the 10-digit code and the reasoning in writing. If the classification is ambiguous, request a binding ruling before the first shipment.
Is DDP always the cheapest option?
Not necessarily, but it is the most predictable. DDP bundles freight, clearance and duties into one price, which removes surprise invoices and the need to hire a broker. If you already have a broker and contracted freight rates, DAP or FOB gives you more control and more visibility into each cost line. Compare the all-in totals, not the headline term.
Do prototype samples from China still need customs clearance?
Yes. The low-value de minimis shortcut for China-origin shipments has been removed, so even a single sample needs full customs processing and a 10-digit HTS code. Include clearance and broker costs in your sample budget.
Why do two suppliers quote very different DDP prices for the same part?
Usually because one has assumed a different HTS classification, a different declared value, or has not actually included duties. Ask each supplier to state the code, the duty assumption and the named broker. A DDP quote that cannot answer those three questions is a quote with an unpriced risk in it.
If you want one number instead of twelve, send us the drawing, quantity and destination. We will quote DDP door-to-door with the duty assumption stated, consolidate parts from multiple factories into one customs entry, and give you a single tracking link. Request an all-in quote. For the sourcing side of the process, start with our custom metal parts sourcing checklist.