Import & Export
Total Cost of Import Explained
Beyond duty: freight, insurance, VAT, brokerage, inland haulage, and hidden fees in total import cost.
Total import cost equals landed cost — every cash outflow from supplier payment to warehouse receipt.
Cost Map
Group costs: (1) supplier invoice, (2) international logistics, (3) customs & taxes, (4) post-clearance logistics, (5) finance charges.
Each group has multiple vendors — total import cost is the sum of all paid invoices.
International Leg
Freight, insurance, origin THC, export docs, currency hedging. Mode choice (LCL vs FCL, air vs sea) shifts total cost more than small FOB discounts.
Customs Stack
Duty, VAT, brokerage, inspection, port storage. Delay days add demurrage — model worst case for new lanes.
Inland and Last Mile
Port to DC transport, unloading, warehousing, inventory carrying cost until sold.
Periodic Review
Reconcile estimated vs actual total import cost per shipment. Feed variances back to supplier scorecards and pricing.
Examples
Hidden fee
Document fee USD 75 + inspection USD 200 not in freight quote → 3% uplift on small shipments.
Finance
90-day LC vs TT in advance changes total cost via interest and bank charges.
FAQ
- Include MOQ tooling?
- Amortize molds/setup into unit total import cost for new products.
- Returns and scrap?
- Quality loss increases effective total cost — track separately.
- Related party pricing?
- Customs may adjust value — affects duty and total cost.
- Consolidation savings?
- Shared containers lower per-SKU freight — recalculate total cost.
- Reporting currency?
- Finance often standardizes to functional currency monthly average.
Conclusion
Total import cost = landed cost. Start from What is Landed Cost? and calculate with our tools.