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With No Surprises.

What Does it Cost?

Cost analysis, a more complex process, is a thorough assessment of the fixed and variable costs leading to the final price of the product.

Product
Costing

What Does it Cost to Import from China to India?

With No Surprises

You need to have a good estimate of the landing cost before you make your order. Landing cost = cost of the goods fob + transport costs by forwarder + import duties (if any)  + cost of our services (inspections, agents, etc.) + local transport costs. There are no hidden costs that are never discussed way in advance. In costing we do not accept or expect assumptions. 

Nothing I mean nothing except what has been discussed will be charged. Transparency is our goal.

COSTING EXPLAINED

  • Purchase price in USD x Exchange Rate ;[a]
  • Freight Charges (USD80 to 120 Per Cubic Meter by Sea/By air $3 to $12) ; [b]
  • Customs Duty on cost of goods [a+b]  x % Tariff Rate = [c]
  • Commission : 5% on [a + b + c] = [d]
  • Applying Local Taxes CST/VAT (% as per tariff x d) = [e]
  • Local Transport from port till your warehouse; [f]
  • Total Amount payable in INR; [e + f]

The below example will illustrate the costing of Product A which you can relate to your product.

Product A is Costing USD 20 ordered quantity is 100pcs; Total CBM (Cubic Meter) of the material is 2 M2. Customs Duty lets say is 15% the landing cost will be as follows:
Purchase price:                               20 X INR 65 (Exchange rate taken as 1USD= INR 65) = INR 1300
Freight Charges for each product:  2 M2 / 100Pcs = 0.02 (CBM/Pc) X $100 = INR 130
Customs Duty :                              (1300+130) X 15% = INR 215
Commission :                                  [1300+130+215] x 5% =  INR 82
Landing cost:                                 INR 1727
Local Taxes and transport as applicable will be taken at actual.

DRY CARGO CONTAINERS

SIZE DOOR OPENINGS*
MM
FEET/INCHES		 INTERNAL DIMENSIONS*
MM
FEET/INCHES		 VOLUME*
M3
CUBIC FEET
Feet/inches Width Height Length Width Height Capacity
20 standard
20′ X 8′ X 8’6″		 2.340
7′ 8″		 2.274
7′ 6″		 5.896
19′ 4″		 2.350
7′ 8″		 2.393
7′ 10″		 33
1,170
40 standard
40′ X 8′ X 8’6″		 2.340
7′ 8″		 2.274
7′ 6″		 12.032
39′ 6″		 2.350
7′ 8″		 2.392
7′ 10″		 67
2,390
40 High
40′ X 8′ X 9’6″		 2.640
7′ 8″		 2.577
8′ 6″		 12.032
39′ 6″		 2.350
7′ 8″		 2.697
8′ 10″		 76
2,700
45 High
45′ X 8′ X 9’6″		 2.340
7′ 8″		 2.584
8′ 5″		 13.556
44′ 6″		 2.347
7′ 8″		 2.696
8′ 10″		 86
3,055

* General description – dimensions vary by specific units

What is Landed Cost?

Landed cost is an essential way to calculate your company’s bottom line by representing the total cost of a product on its journey from the factory floor to your buyer’s door.

It includes the price of goods, shipment costs, insurance fees, customs duties, and any other charges incurred along the way.

Not only is knowing how to calculate landed cost important, it is necessary to running a successful business.

Why is Landed Cost Necessary?

There are obvious and hidden costs associated with getting any product to your customers. As such, the true cost of the products you sell may sometimes seem opaque.

But knowing your landed cost can bring clarity, allowing you to assess how your business is performing, maximize your pricing, and ensure that you know exactly how much you are paying for your inventory.

It also provides you the opportunity to analyze your supply chain and determine where it might be worth cutting costs.

This information enables you to calculate whether or not you will be able to make a profit on your products or even if your business model is sustainable.

But calculating landed cost can be difficult if you do not yet know your full expenses or lack the experience to anticipate how high the additional fees that often come up in shipping will be.

The key is to have the right set of tools to be able to anticipate and estimate a value that is as close to your actual costs as possible.

Calculating Landed Cost

Figuring out your landed cost can be tricky.

Estimate too high and you may lose out on sales because of your pricing.

Estimate too low and your profits could suffer.

That is why it necessary to have the right tools.

Remember: your initial estimate is just that. An estimate. Our calculators are a great way to get a solid idea of your costs, but you should always perform another landed cost calculation once you have your final numbers.

This is the basic equation that you will be calculating:
Shipping + Customs + Risk + Overhead = Landed Cost

How to reduce your expenses and increase profits?

While marking up prices is one way to reduce your total landed costs, a landed cost analysis can help you uncover additional opportunities that could potentially make an even bigger impact — without putting the burden on your customers.

One of the most effective ways to use a landed cost analysis to reduce expenses is to audit your supply chain partners. Remember, the lowest price doesn’t always translate into the biggest profit.

Unexpected fees could raise your total landed cost. Price compare different manufacturers, suppliers, 3PLs, shippers, etc. and research the TRUE net landed cost to determine which is the best fit for your growing business. You could also try to negotiate better rates and package with your existing partners.

COSTING EXPLAINED

Purchase price in USD x Exchange Rate ;[a]
Freight Charges (USD80 to 120 Per Cubic Meter by Sea/By air $3 to $12) ; [b]
Customs Duty on cost of goods [a+b] x % Tariff Rate = [c]
Commission : 5% on [a + b + c] = [d]
Applying Local Taxes CST/VAT (% as per tariff x d) = [e]
Local Transport from port till your warehouse; [f]
Total Amount payable in INR; [e + f]

The below example will illustrate the costing of Product A which you can relate to your product.

Product A is Costing USD 20 ordered quantity is 100pcs; Total CBM (Cubic Meter) of the material is 2 M2. Customs Duty lets say is 15% the landing cost will be as follows:
Purchase price: 20 X INR 65 (Exchange rate taken as 1USD= INR 65) = INR 1300
Freight Charges for each product: 2 M2 / 100Pcs = 0.02 (CBM/Pc) X $100 = INR 130
Customs Duty : (1300+130) X 15% = INR 215
Commission : [1300+130+215] x 5% = INR 82
Landing cost: INR 1727
Local Taxes and transport as applicable will be taken at actual.

Landed Cost: What It Is and How to Calculate the Cost of Imported Goods

3 important Information Required to Derive at costing
What Does it Cost 1

Product Price

Price Terms:
  • EXW
  • FOB
  • CIF

 

 
What Does it Cost 2

Cubic Meter (CBM)

How much Space it occupies

Length (cm) x Width (cm) x Height (cm) / 1,000,000

*cm=centimeter

What Does it Cost 3

weight

Volumetric or Actual Weight

(Length x Width x Height in cm) / 5000 =

Volumetric Weight in kilograms

What is included in total landed cost?

As mentioned, the net landed cost includes every expense you incurred in order to fulfill an order and get it into a customer’s hands. There are five main categories of your landed price:

  • What Does it Cost 4

    Product

    The product is the most straightforward data point. This includes the unit price you paid to obtain the item from your supplier. The product price accounts for materials and components.

  • What Does it Cost 5

    Shipping

    Shipping costs include crating, packing, handling, freight and transportation. You might have transportation fees for inland, ocean and air, depending on how you import and export your products.

  • What Does it Cost 6

    Customs

    Customs include both the import and export of your products. If you purchase from a foreign supplier, you’ll have import fees. If you sell to customers in different countries, you’ll have export-fees. Customs expenses include duties, taxes, tariffs, levies, Goods and Service Tax (GST), brokerage fees, harbour fees and other regulatory fees.

  • What Does it Cost 7

    Risk

    Risk includes whatever you’re paying to protect your business, products and customers. That means expenses for insurance, compliance and quality assurance. This also includes whatever you have invested in safety stock.

  • What Does it Cost 8

    Overhead

    Overhead pertains to things like purchasing staff, due diligence, travel, exchange rates/currency conversion, payment processing fees, carrying costs, purchasing agency commissions, corporate income tax and bank charges.

How to calculate cost of imported goods with the landed cost calculation formula

Landed cost = product + shipping + customs + risk + overhead To calculate landed cost, you’ll find the sum of the expenses associated with the product, shipping, customs, risk and overhead, as defined above. That number is your total landed cost.

It’s also important to be as accurate as possible, and leveraging technology automation can ensure that. If you calculate net landed cost to be too high, you could price customers out of purchasing your products. If you go too low, you could cut into your profits.

Get you First quote for Free:

For us to give you an accurate quote Please sent us the following information:

  1. Value of order
  2. CBM or size of the boxes
  3. Weight of total order
  4. HSN code
  5. Product description
  6. Mode: Air/Sea

You can also share Proforma invoice and packing list if you have.

 

Request for Free Quote

FAQ’s

Q: What factors contribute to the cost of importing goods from China to India?

A: The cost of importing goods from China to India is influenced by factors such as product value, shipping charges, customs duties, taxes, insurance, currency exchange rates, and any additional fees or services required.

Q: How do I calculate the customs duties and taxes for importing goods from China to India?

A: Customs duties and taxes are calculated based on the customs value of the goods, which includes the product value, freight charges, insurance, and any other applicable costs. The rates vary depending on the product’s classification under the harmonized system (HS) code.

Q: Are there any specific fees or charges associated with customs clearance when importing from China to India?

A: Yes, there may be charges for customs clearance services provided by customs brokers or agents. Additionally, certain ports may have handling charges or documentation fees that need to be considered.

Q: What are the common shipping methods used for importing goods from China to India?

A: The common shipping methods include air freight and sea freight. Air freight is faster but more expensive, while sea freight is generally cheaper but takes longer.

Q: How do I estimate shipping costs for importing goods from China to India?

A: Shipping costs depend on factors such as shipment weight, volume, mode of transport, distance, and additional services required. Requesting quotes from shipping companies or freight forwarders can provide a more accurate estimate.

Q: Can I negotiate shipping rates when importing from China to India?

A: Yes, negotiation with shipping companies or freight forwarders is possible. It is advisable to compare quotes from multiple providers and discuss potential discounts or cost-saving options.

Q: What are Incoterms, and how do they impact the import costs?

A: Incoterms are internationally recognized terms that define the responsibilities and costs between the buyer and seller during shipping. The chosen Incoterm affects who bears the transportation costs and insurance, which impacts the overall import costs.

Q: Are there any hidden costs or charges to be aware of when importing from China to India?

A: Hidden costs may include storage fees, demurrage charges, port handling charges, customs examination fees, and administrative fees. It is important to clarify these potential costs before finalizing the import process.

Our Costing Incl All the Hidden Charges.

Q: Are there any exemptions or reduced rates for customs duties and taxes when importing from China to India?

A: Certain products may qualify for exemptions or reduced rates under free trade agreements, preferential trade agreements, or special schemes such as duty drawbacks. Researching and complying with specific requirements can help reduce costs.

Q: How does the currency exchange rate impact the cost of importing from China to India?

A: Fluctuations in the currency exchange rate between the Indian rupee and the Chinese yuan can affect the cost of importing. It is advisable to monitor exchange rates and consider hedging strategies to manage currency risks.

Q: Are there any cost-saving measures I can take when importing from China to India?

A: Yes, you can consider options such as consolidating shipments, optimizing packaging to reduce volume, exploring different transportation routes, and leveraging trade agreements or schemes to minimize

Q: Can I opt for insurance coverage for my imported goods?

A: Yes, it’s recommended to have insurance coverage for your imported goods to protect against loss or damage during transit. Insurance costs can vary based on the value and nature of the goods.

ONE STOP SERVICES

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  • Warehousing and mixed container services
  • Prepare Exportation Documents
  • Cheapest Shipping of Products by Air or by Sea
  • Assisting in Customs Clearance of Goods in Chennai, Mumbai, Delhi, Pune, Kolkata, Cochin, Bangalore, Hyderabad, Ahmedabad, and Jaipur.
  • Also Assisting in Customs Clearing of Goods from cities: Agra, Ajmer, Aligarh, Allahabad, Amravati, Amritsar, Asansol, Aurangabad, Bareilly, Belgaum, Bhavnagar, Bhiwandi, Bhopal, Bhubaneswar, Bikaner, Chandigarh, Coimbatore, Cuttack, Dehradun, Dhanbad, Durgapur, Erode, Faridabad, Firozabad, Ghaziabad, Gorakhpur, Gulbarga, Guntur, Gurgaon, Guwahati, Gwalior, Hubli-Dharwad, Indore, Jabalpur, Jaipur, Jalandhar, Jammu, Jamnagar, Jamshedpur, Jhansi, Jodhpur, Kannur, Kanpur, Kakinada, Kochi, Kottayam, Kolhapur, Kollam, Kota, Kozhikode, Kurnool, Lucknow, Ludhiana, Madurai, Malappuram, Malegaon, Mangalore, Meerut, Moradabad, Mysore, Nagpur, Nashik, Nellore, Noida, Patna, Pondicherry, Raipur, Rajkot, Rajahmundry, Ranchi, Rourkela, Salem, Sangli, Siliguri, Solapur, Srinagar, Surat, Thiruvananthapuram, Palakkad, Thrissur, Tiruchirappalli, Tiruppur, Ujjain, Vadodara, Varanasi, Vijayawada, Visakhapatnam, Warangal
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