Landed cost
Also called: total landed cost · duty-paid cost
The full cost of a product delivered to the buyer's premises, including purchase price, freight, insurance, customs duty, additional duties, import taxes, fees and handling. It is a commercial calculation rather than a customs term, but it depends on customs value and tariff classification.
In practice
Pricing decisions based on factory price alone can miss double-digit percentages once trade-remedy duties and non-recoverable taxes are added.
EU
Türkiye
USA
UKRelated terms
- Customs value
- The value of imported goods on which ad valorem duties are calculated. Almost all countries follow the WTO Customs Valuation Agreement, under which…
- Customs duty
- A tax levied on goods when they cross a customs border, most often on import. It is calculated from the tariff classification, the origin and either…
- Import VAT
- Value added tax charged on goods when they enter a VAT territory, collected by customs together with duty. Its base is normally the customs value…
- Incoterms
- A set of standard three-letter trade terms published by the International Chamber of Commerce that allocate delivery point, risk, costs and customs…