Calculating Import Costs from China in Full

Import costs are all expenses until the saleable goods are available at the agreed destination. Landed cost is the reliable basis for comparison. A FOB or ex-works price alone leaves freight, inspection, duty and delivery open. Duty and import VAT depend on the country of import; different rules apply in EU countries and in Switzerland.

The full landed cost formula

The basic structure is: goods and packaging plus one-off set-up plus samples plus quality inspection plus transport in China plus main freight plus insurance plus duty and import handling plus onward delivery to the delivery address. The total is divided by the quantity actually saleable, not automatically by the gross quantity ordered.

• Product price based on the approved specification
• Samples, tooling and set-up shown separately
• Final packing data as the basis for freight
• Project-specific tariff classification instead of a flat duty rate
• Named delivery location for onward delivery

Why packing data changes the freight price

Freight is not calculated from the product photo. Packed dimensions, gross and net weight, number of packages, pick-up location and destination determine the route. If the individual packaging or carton split changes, the transport volume and therefore the calculation can change.

Checking customs treatment per project

All goods imported into the EU must be classified under the customs tariff. The code depends on objective product characteristics and affects the duty rate and possible further measures. TARIC brings together the measures of the Common Customs Tariff but, by its own explanation, does not include national charges such as VAT. The tax position therefore belongs in the calculation as a separate item; how import VAT and input tax deduction work is covered in a separate article.

Incoterm and quote must fit together

A price is only understandable together with the delivery term and a named place. Under DDP, the seller bears far-reaching obligations under Incoterms® 2020 up to making the import-cleared goods available at the destination. This does not automatically mean unloading or any additional services; the specific contract remains decisive.

Template for your own calculation

The landed cost template as CSV lists all cost items. DS Trading prepares quotes for the agreed article and destination and combines sourcing with shipping and customs clearance.