What is Landed Cost? Import Decision Guide
Landed cost is the true all-in cost to get goods to your warehouse/door — product, freight, duty, taxes, and local charges. Never decide on FOB unit price alone.
Structured trade knowledge covering terms, processes, regulations, and practice.
Landed cost is the true all-in cost to get goods to your warehouse/door — product, freight, duty, taxes, and local charges. Never decide on FOB unit price alone.
Calculate landed cost in a fixed sequence: commercial value → freight → duty base → taxes → local charges → inland.
FOB is a delivery term price point; landed cost is a business decision metric. Use both — never substitute one for the other.
Duty can dominate landed cost. HS classification errors create both cost and compliance risk.
Total cost of import extends landed cost with QC, payment financing, inventory carry, and risk buffers.
Import licensing is government permission to import controlled goods. Gate POs on license readiness.
Bonded warehouses let you store imports with duty deferred until release. Useful for uncertain sell-through.
A customs bond guarantees payment of duties/fees to customs. Continuous bonds suit frequent importers.
Import timelines fail when teams only track factory lead time. Add booking, transit, clearance, and inland buffers.
De minimis is a value threshold below which formal duty/entry may be simplified or waived — rules vary by country and change.