Landed Cost

Landed Cost refers to the total cost actually borne by the importer after goods are shipped from the exporting country, arrive at the destination in the importing country (such as a port or warehouse), and complete customs clearance, payment of tariffs, and various taxes and fees. It typically includes: FOB price, international freight, insurance, import tariffs, value-added tax, customs clearance fees, port miscellaneous charges, inland transportation fees, and possible agency fees. Usage scenarios: importers calculating true procurement costs, setting sales prices, evaluating supplier quotations, conducting cost control and profit analysis. Notes: The composition of landed cost varies under different trade terms (such as FOB, CIF, DDP); tariffs and taxes must be accurately estimated to avoid omitting hidden costs such as demurrage and exchange rate fluctuations. Difference from CIF: CIF only covers cost, insurance, and freight to the destination port, excluding import customs clearance, tariffs, and subsequent costs; landed cost is a more comprehensive total landed cost. Difference from DDP: Under DDP, the seller bears the entire landed cost, and the buyer only needs to receive the goods; landed cost is usually used for the buyer's own calculation.