Know Your Real Import Cost
- Arne Mielken
- May 20
- 4 min read
Are you underestimating the true cost of your imports? Landed cost calculation is the key to customs compliance and profit protection.
Let’s face it—importing isn’t just about buying a product overseas and shipping it to your warehouse. That’s just the tip of the customs compliance iceberg. If you're a Customs Consultant, Compliance Officer, or Importer dealing with EU, UK, or USA trade, knowing your landed cost isn’t a nice-to-have—it's a business necessity.
Getting this wrong means eroding your margins, making poor sourcing decisions, and underestimating tax liability. So, how do you get it right?
Top tip 1: You can break down a paywall by becoming a Premium Plan subscriber.
Top tip 2: For customs updates, blog explainers, invitations to webinars and advice on how changes could affect your business, sign up for email alerts at www.customsmanager.info.
Key Questions Covered in This Blog
What is "landed cost" and why is it essential for importers?
What key components must be included in landed cost?
How do Incoterms® affect landed cost calculations?
How does customs classification impact the true import cost?
What are the most common mistakes companies make when calculating landed cost?
How can teams across finance, compliance, and sourcing collaborate more effectively?
Abbreviations Used In This Blog
EXW – Ex Works
FOB – Free on Board
FTA – Free Trade Agreement
HS Code – Harmonised System Code
BTI – Binding Tariff Information
SCDP – Simplified Customs Declaration Processes
VAT – Value Added Tax
“Landed cost isn’t just a number—it’s your truth in trade. Miscalculate it, and you're building your business on shifting sand.”– Arne Mielken, Managing Director, Customs Manager
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What is "landed cost" and why is it essential for importers?
Landed cost is the total price of a product once it has arrived at your door. Not just the product price or the freight invoice—it includes duties, VAT, customs clearance, transport, insurance, port handling fees, and every hidden penny between your supplier’s gate and your store shelf.
Think of it as the “all-in” price of doing business internationally. Calculating it correctly gives you true visibility over your margins, ensures compliance with customs regulations, and protects you from nasty surprises that derail profits or compliance standing.
What key components must be included in landed cost?
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