Total Landed Cost & Import Duty Calculator
Calculate the true cost of imported products landed at your warehouse door. Factor in unit product price, ocean/air freight charges, transit insurance, import tariffs/duties, VAT, and local port handling fees.
- • CIF Duty Valuation: Duty = (Product Price + Freight + Insurance) × Duty Rate %
- • FOB Duty Valuation: Duty = Product Price × Duty Rate %
- • Import VAT/GST: Applied on (Customs Value + Duty Amount)
- • Unit Landed Cost: Total Batch Cost / Total Quantity
1. Shipment Cost & Tariff Parameters
Landed Cost Calculation Methodology & Incoterms Valuation
Calculating accurate total landed cost prevents margin distortion in international e-commerce and wholesale trade. Landed cost incorporates all direct expenditures required to move freight from an overseas factory to the destination warehouse.
CIF Valuation vs FOB Valuation Rules
Understanding regional customs valuation methods is critical. Under CIF Valuation (used in Europe, UK, Australia, and China), ocean or air freight charges and cargo insurance are subject to import tariffs. Under FOB Valuation (used in the US and Canada), customs duty is assessed strictly on the first-port product value, excluding main international freight.
Frequently Asked Questions
Q: What happens if I ignore local port handling fees in my landed cost?
Omitting destination terminal handling charges (THC), demurrage risk, and customs clearance broker fees typically causes a 3% to 8% cost overrun per unit, directly reducing gross profit margins.
Q: Is import VAT a permanent cost or recoverable?
For VAT/GST registered businesses, import VAT paid at customs can usually be claimed back as input tax credit. However, customs duties and tariff surcharges are non-recoverable product costs.