Import Landed Cost Calculator for Machinery

What the calculator adds up

The tool follows the same sequence a customs broker and freight forwarder use, because each component is charged on the previous one — which is why the total is always more than the sum of the headline figures.

• Goods value (FOB) — unit price × quantity. This is the only line a supplier quotes you.
• Ocean freight — charged per container, so the per-unit cost falls as you fill the box.
• Marine insurance — normally a small percentage of goods plus freight.
• Import duty — assessed on the CIF value (goods + freight + insurance), not on the factory price alone.
• VAT or sales tax — charged on the duty-paid value, so duty increases tax as well.
• Clearance, port handling and inland delivery — brokerage, terminal charges and trucking to your site.

Two compounding effects are worth understanding. First, because duty is charged on freight too, expensive freight raises your duty bill. Second, because tax is charged on the duty-paid value, duty raises your tax bill. That is why the extras percentage is consistently higher than buyers expect.

Why FOB and CIF give different answers

Under FOB the supplier delivers to the port of loading and you arrange freight. The calculator suits this best, because you enter the real freight figure you were quoted.

Under CIF the supplier arranges freight and insurance, so the freight is inside the unit price and the calculator will understate the split. If you only have a CIF price, ask the supplier for the freight component — most will provide it, and it lets you compare their freight against your own forwarder’s rate.

What the calculator cannot know

Duty rates and tax treatment are country- and product-specific, so the tool uses whatever percentage you enter. To get those right:

• Ask your customs broker to classify the machine under the harmonised system (HS) code before you order. The code determines the duty rate.
• Check whether a trade agreement gives your country a preferential rate, and what proof of origin that requires.
• Confirm whether you can reclaim the VAT or sales tax as a registered business — if you can, exclude it from your true cost.
• Add antidumping or safeguard duties if they apply to your product category and origin.

How to use the result

The per-unit landed cost is the only figure that lets you compare two suppliers fairly. A supplier quoting a lower unit price with poor container utilisation can cost more per machine than a slightly dearer supplier who loads efficiently — and the calculator makes that visible in one screen.

It is also the number to compare against a local dealer’s delivered price. On small orders, freight and clearance frequently account for a third of the total, which is exactly the gap a dealer charges for.

Frequently asked questions

Is import duty calculated on the goods value or on freight too?

Normally on the CIF value — goods plus freight plus insurance. Higher freight therefore increases your duty, which is one more reason to fill the container.

Why is my landed cost so much higher than the quotation?

Because the quotation usually covers only the goods, or goods plus freight. Duty, tax, insurance and clearance are charged on top, and each is calculated on the previous line, so they compound.

Should I include VAT in the landed cost?

Only if you cannot reclaim it. A registered business that recovers input VAT should exclude it, because it is a cash-flow item rather than a true cost.

How do I find the right duty rate?

Ask a customs broker to classify the machine using its harmonised system code. Classification determines the rate, and correcting a wrong code after arrival is expensive.

Can you quote CIF or DDP instead of FOB?

Yes. We quote FOB, CIF and DDP and will show the freight component separately, so you can compare it with your own forwarder’s rate.

Want a landed-cost estimate for a specific order? Send us the models, quantity and destination port, or read the full landed cost guide and use the container loading calculator to see how many units fit.