With no surprises.....
You need to have a good estimate of the landing cost before you make your order. Landing cost = cost of the goods fob + transport costs by forwarder + import duties (if any) + cost of our services (inspections, agents, etc.) + local transport costs. There are no hidden costs which are never discussed way in advance. In costing we do not accept or expect assumptions.
Nothing I mean nothing except what have been discussed will be charged. Transparency is our goal....
- Purchase price in USD x Exchange Rate ;[a]
- Freight Charges (USD80 to 120 Per Cubic Meter by Sea/By air $3 to $12) ; [b]
- Customs Duty on cost of goods [a+b] x % Tariff Rate = [c]
- Commission : 5% on [a + b + c] = [d]
- Applying Local Taxes CST/VAT (% as per tariff x d) = [e]
- Local Transport from port till your warehouse [f]
- Total Amount payable in INR [e + f]
The below example will illustrate the costing of Product A which you can relate to your product.
Product A is Costing USD 20 ordered quantity is 100pcs; Total CBM (Cubic Meter) of the material is 2 M2. Customs Duty lets say is 15% the landing cost will be as follows:
Purchase price: 20 X INR 65 (Exchange rate taken as 1USD= INR 65) = INR 1300
Freight Charges for each product: 2 M2 / 100Pcs = 0.02 (CBM/Pc) X $100 = INR 130
Customs Duty : (1300+130) X 15% = INR 215
Commission : [1300+130+215] x 5% = INR 82
Landing cost: INR 1727
Local Taxes and transport as applicable will be taken at actual.
CBM (Cubic Meter) Space taken in cubic meter i.e. 1 CBM is 1m x 1m x 1m
DRY CARGO CONTAINERS