IMPORT COMPLIANCE FAQs
What is Landed Cost?
Landed cost is the total cost that must be paid for a good or item being imported into the country. It includes the cost of shipping, as well as compliance-related costs such as duties, taxes, and fees. Other charges may also be included in the total landed cost, such as antidumping and countervailing duties, foreign exchange conversion fees, license fees, as well as miscellaneous charges, such as insurance and fraud protection fees.
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How do you calculate tariffs on imports?
Import tariffs are calculated by correctly identifying the product being imported against government lists and schedules (i.e., accurately classifying the product ), and then determining the taxes and duties associated with imports for that product. Once these taxes and duties have been determined, they can be applied to the total value of the shipment, and then paid to the relevant customs authorities.
How do you calculate landed cost?
Since landed cost is a superset comprising import duties and taxes, as well as other charges and costs, including shipment fees, insurance and fraud protection costs, and foreign trade exchange and conversion fees, the landed cost for a shipment is simply the sum total of all these charges for that shipment.
In other words,
Landed Cost = import tariffs and duties + customs fees + shipping costs + other overhead expenses
Using import data and compliance solutions can help organizations accurately assess landed costs too.