Structured trade knowledge covering terms, processes, regulations, and practice.
Landed cost = purchase price + international logistics + import duty/VAT + inland delivery and fees.
Landed Cost = Product + Freight + Insurance + Duty + VAT + Local charges. Use HS code and CIF customs value.
FOB = goods on board at origin port. Landed cost = FOB + freight + duty + taxes + delivery to warehouse.
Duty is usually applied to customs value (often CIF). It is a major lever in landed cost alongside freight and VAT.
Duty = Customs value × Applicable rate. Confirm HS code, origin, and any additional tariffs.
Total import cost equals landed cost — every cash outflow from supplier payment to warehouse receipt.
An L/C is a conditional bank promise to pay the beneficiary when compliant documents are presented.
T/T moves funds bank-to-bank. Common structures: 30% deposit + 70% before shipment or against copy B/L.
L/C adds bank document control; T/T is faster/cheaper but trust-based.
Clear payment terms state method, timing, currency, bank charges, and consequences of default.
Advance payment is money sent before shipment — typically 10–30% deposit to start production.
Net 30 is open account credit — buyer pays within 30 days of invoice date without L/C.