Landed cost is what a furniture order from Turkey costs once it stands at your site: the factory price plus every charge between the factory gate and your door. The Incoterm on the quote says who pays each charge (our Incoterms guide covers that). This page covers how much each one is, and which value each tax is charged on.
The landed cost, step by step
| Step | What it covers | Typically billed by |
|---|---|---|
| 1. Ex-works value | The furniture, packed for export, at the factory in Turkey | Seller |
| 2. Export handling | Loading, truck to the Turkish port or border, export declaration | Seller (FCA and up) or your forwarder |
| 3. Main freight | Sea or road leg from Turkey to your country | Seller (CFR, CIF, DAP, DDP) or your forwarder |
| 4. Insurance | Cargo cover for the transit | Whoever carries the risk in transit |
| 5. Import duty | Rate per tariff line, charged on the customs value | Importer of record |
| 6. Import VAT or GST | Charged on the customs value plus duty, and in the UK and EU plus delivery costs | Importer of record |
| 7. Port and clearance | Terminal handling, customs broker, fees | Importer, through the broker |
| 8. Delivery to site | Truck from the port or border to the address | Seller (DAP, DDP) or importer |
The trap is step 5. The same order has a different customs value in each market.
Duty and import VAT by market
Rates below are for wooden hotel furniture (HS 9403 50, 9403 60) from Turkey, read in October 2026. Other lines (metal frames, mattresses, lighting) carry their own codes and rates.
| Market | Duty on wooden furniture from Turkey | Duty is charged on | Import VAT or GST |
|---|---|---|---|
| UK | 0%, third-country and Türkiye preference (UK Trade Tariff) | Price plus freight, insurance and loading up to the UK border (GOV.UK) | 20%, on customs value plus duty plus costs to the first UK destination (GOV.UK) |
| EU | 0%, erga omnes and under the EU–Türkiye customs union (EU tariff) | Price plus transport, insurance, loading and handling up to the EU border (Union Customs Code, art. 71) | Member-state rate (Germany 19%), on customs value plus duty plus costs to the first destination (VAT Directive, art. 85–86) |
| US | Free base rate on HTS 9403 wood lines (USITC); plus 12.5% Section 301 on products of Türkiye (CBP); 25% Section 232 on certain upholstered wooden seating, kitchen cabinets and vanities | Transaction value, without international freight and insurance (19 CFR 152.103) | No federal import VAT. Merchandise processing fee 0.3464% (19 CFR 24.23), harbor maintenance fee 0.125% on sea cargo (19 CFR 24.24) |
| Canada | 9.5% MFN on wooden bedroom furniture, other wooden furniture free (CBSA); 25% surtax on wood cabinets and vanities since 31 Jul 2026 | Price without transport and insurance from the place the goods ship directly to Canada (Customs Act, s. 48) | GST 5%, on value for duty plus duty (CBSA) |
| Saudi Arabia | GCC tariff, at least 5%, checked per line in the Saudi tariff | CIF value (US ITA) | VAT 15% (US ITA) |
| UAE | 5%, or the lower UAE–Türkiye CEPA rate where the line qualifies | CIF value (UAE Government portal) | VAT 5% (Federal Tax Authority) |
Two things follow from the table. In the UK, the EU and the Gulf, every dollar of freight to the border is also taxed at the duty rate. In the UK and the EU, import VAT reaches further still: the broker’s charges and the truck to site sit inside the VAT value.
For the Gulf, deliveries from Turkey go by land and via Jeddah. On a CIF basis that freight, whichever route, is part of the value the 5% is charged on.
A worked example (illustrative)
Every number in this example is an assumption, chosen to be round. It is not a Rovers price, a freight quote or a duty ruling. One order of wooden casegoods (HS 9403, no upholstered seating, no cabinets or vanities), shipped by sea, the seller’s price including the truck to the Turkish port.
| Line | UK | US | Canada |
|---|---|---|---|
| A. Ex-works value (assumed) | 100,000 | 100,000 | 100,000 |
| B. Export handling and truck to the Turkish port (assumed) | 1,500 | 1,500 | 1,500 |
| C. Sea freight to the destination port (assumed) | 4,000 | 4,000 | 4,000 |
| D. Cargo insurance (assumed) | 400 | 400 | 400 |
| Value duty is charged on | 105,900 (A+B+C+D) | 101,500 (A+B) | 101,500 (A+B) |
| Duty | 0 (0%) | 12,687.50 (12.5% Section 301) | 9,642.50 (9.5% MFN, bedroom furniture) |
| US fees: MPF 0.3464% and HMF 0.125% | n/a | 478.48 | n/a |
| E. Port charges and customs broker (assumed) | 1,200 | 1,200 | 1,200 |
| F. Truck from port to site (assumed) | 900 | 900 | 900 |
| VAT or GST base | 108,000 (105,900 + duty + E + F) | n/a | 111,142.50 (101,500 + duty) |
| Import VAT or GST | 21,600 (20%) | n/a (state sales or use tax not modelled) | 5,557.13 (5%) |
| Landed cost, USD | 129,600 | 121,165.98 | 123,199.63 |
Read it with two notes. In the UK, a VAT-registered importer can normally reclaim the import VAT as input tax (HMRC), so the cost that stays is 108,000. In the US, one upholstered wooden chair line in the same order would carry the 25% Section 232 tariff on top, and that rate is set to rise from 1 January 2027; check each line against its own HTS code.
On a CIF basis, the same order into the UAE at 5% would pay 5,295 in duty on 105,900, before any CEPA reduction.
Where the numbers move
- The tariff line. A bed, a wardrobe and an upholstered chair can sit under different codes and rates. The quote should name the code and the duty assumption per line. Our market pages list the lines for each country.
- The Incoterm. Under DAP the duty and VAT are yours; under DDP they sit inside the seller’s price, and in the UK the import VAT then stays in your cost. Run the Incoterms chooser before you compare quotes.
- Freight. In CIF markets it raises the duty too; routes, transit times and documents from Turkey are in the shipping guide.
What to send us
Send the BOQ or drawings, the site address and the term you want the quote on. We price every line with the Turkish partner factory that fits, show the tariff code and duty assumption per line, and quote freight to your port or to site. Outside the US we can carry it through installation; for the US we price manufactured and delivered.
- GOV.UK: Delivery costs to include in the customs value (transport, loading and insurance up to the place of introduction into the UK; updated 15 Apr 2026) · accessed 2026-10-07
- GOV.UK: Working out the VAT value using the customs value of the imported goods (add duty and incidental expenses up to the first UK destination; updated 26 Sep 2025) · accessed 2026-10-07
- HMRC: Paying VAT on imports from outside the UK (import VAT reclaimed as input tax) · accessed 2026-10-04
- UK Trade Tariff (HMRC): 9403 60 10 00, third-country duty 0.00%, preferential (Türkiye) 0.00%, VAT 20% · accessed 2026-10-04
- EUR-Lex: Regulation (EU) No 952/2013, Union Customs Code, art. 71(1)(e) (transport, insurance, loading and handling up to the place goods enter the EU added to the customs value) · accessed 2026-10-07
- EUR-Lex: Council Directive 2006/112/EC (VAT Directive), art. 85 and 86 (import VAT on customs value plus duties and incidental expenses to the first place of destination) · accessed 2026-10-07
- UK Trade Tariff, Northern Ireland (EU tariff) view: 9403 50, 0% erga omnes and under the EU–Türkiye customs union · accessed 2026-10-04
- Bundesministerium der Finanzen: Einfuhrumsatzsteuer (19%) · accessed 2026-10-04
- eCFR 19 CFR 152.103: transaction value excludes C.I.F. charges (international freight and insurance) · accessed 2026-10-07
- eCFR 19 CFR 24.23: merchandise processing fee, 0.3464% ad valorem, with an adjusted minimum and maximum · accessed 2026-10-07
- eCFR 19 CFR 24.24: harbor maintenance fee, 0.125% of the value of cargo loaded or unloaded at a US port · accessed 2026-10-07
- USITC Harmonized Tariff Schedule: HTS 9403 wooden furniture lines, general rate Free · accessed 2026-10-04
- CBP CSMS #69326983: Section 301 duties on products of Türkiye, 12.5% (heading 9903.05.79), from 24 Jul 2026 · accessed 2026-10-04
- White House fact sheet: Section 232, 25% on certain upholstered wooden seating, kitchen cabinets and vanities (Dec 2025) · accessed 2026-10-04
- Justice Laws: Customs Act (Canada), s. 48 (transport and insurance from the place of direct shipment to Canada deducted from the value for duty) · accessed 2026-10-07
- CBSA: Customs Tariff 2026, Chapter 94 (wooden bedroom furniture 9.5% MFN; Turkey: MFN) · accessed 2026-10-04
- Federal Register Vol. 91 No. 6 (9 Jan 2026): Section 232 increase on upholstered wooden seating deferred to 1 Jan 2027 · accessed 2026-10-04
- CBSA Customs Notice 26-17: 25% surtax on certain wood cabinets and vanities from 31 Jul 2026 · accessed 2026-10-04
- CBSA: Guide to importing commercial goods, step 3 (GST 5% on value for duty plus duty; modified 17 Sep 2026) · accessed 2026-10-07
- US International Trade Administration: Saudi Arabia import tariffs (duty ad valorem on CIF value; GCC tariff of at least 5%; VAT 15%; 11 May 2026) · accessed 2026-10-07
- UAE Government portal: customs duty 5% of the CIF value (updated 14 Sep 2026) · accessed 2026-10-07
- UAE Ministry of Economy and Tourism: UAE–Türkiye CEPA, in force since 1 Sep 2023 · accessed 2026-10-04
- UAE Federal Tax Authority: VAT, standard rate 5% · accessed 2026-10-07