Determine the true final cost of your goods delivered to your warehouse door — factoring in procurement, freight, customs duties, surcharges, clearing fees, and local logistics.
Components of Landed Cost in India
Landed cost represents the comprehensive end-to-end expenditure required to bring a manufactured or imported product into your warehouse inventory:
Assessable Value (CIF): FOB / Ex-Factory Price + International Freight + Marine Insurance
Basic Customs Duty (BCD): Applied on Assessable Value (e.g., 7.5%, 10%, 20%)
Social Welfare Surcharge (SWS): 10% on Basic Customs Duty
Integrated GST (IGST): Applied on (CIF + BCD + SWS)
Clearing & Port Handling: CHA fees, terminal handling (THC), CFS charges
Last-Mile Domestic Freight: Port to warehouse trucking
Formula
Assessable Value = FOB + Freight + Insurance Customs Duties = BCD + (10% × BCD) + IGST Total Landed Cost = Assessable Value + Customs Duties + Port & CHA Fees + Domestic Freight Landed Cost Per Unit = Total Landed Cost / Quantity
Frequently Asked Questions
Relying solely on factory or FOB quote leads to severe underpricing. Port charges, customs duties, IGST, and freight can increase unit costs by 30% to 70%.
\n
Yes, if you have a regular GST registration and use imported goods for business furtherance, IGST paid under Bill of Entry is eligible for 100% Input Tax Credit (ITC).
\n
SWS is a 10% cess levied on the Basic Customs Duty (BCD) component of imports under the Indian Customs Act.