How to Calculate Landed Cost of Imported Goods in India
Understand Your Real Import Cost Before Placing an Order Product price is not the same as import cost. An overseas supplier may offer you an attractive price, but after adding freight, customs duties, applicable taxes, port charges, clearance, transportation and other expenses, the final cost can be significantly higher. This final cost is commonly referred to as the landed cost . Understanding landed cost before placing an import order can help businesses compare suppliers, determine selling prices and make better purchasing decisions. What Is Landed Cost? Landed cost is the overall cost associated with bringing imported goods from the supplier to the intended destination. A simplified formula is: Landed Cost = Product Cost + Freight + Insurance, where applicable + Customs Duties & Applicable Taxes + Clearance & Logistics Costs + Other Applicable Charges The exact calculation depends on the product, transaction structure, Incoterm, customs valuation and applic...