Calculate Landed Cost

Landed cost is the quoted or invoiced cost of a commodity, plus any inbound transportation charges including duties, international freight, insurance, etc.

The landed cost calculated by Tradeflow's wizard provides an estimation of the costs involved in trading goods across borders. A landed cost calculation is comprised of four main elements:

Merchandise value
Transportation charges
Insurance charges
Duties, Value Added Taxes (VAT), Excise and other fees assessed on the goods

Once you provide the required inputs, the Wizard returns the total cost of importing the selected commodity to a specified destination country.

You can also click the calculator icon, in the Charges section to use the choose rates specific to your shipment. You must first upload rate data in the Trade Reference Center before using this function.

Choose the Product Type for instructions on how to calculate landed cost.

Page Outline

Single

Choice

Set

Single - Product Type

To calculate landed cost for product type Single:

1 Click Add Product from the left navigation panel. Fill in the required data. The product Type must be Single. Click Save.

2 Click Landed Cost; the Landed Cost Estimate page appears (See Figure 1). Enter the required data in this page. See the field definitions below for more information.

3 Click Submit to view the results of landed cost estimate. See Figure 2. For more information on the field definitions of the landed cost result, see View Landed Cost.

Landed Cost - Single

Figure 1: Landed Cost Estimate Page - Product Type Single

Landed Cost Results for Product Type Single

Figure 2: Landed Cost Estimate Results - Product Type Single

A list of the fields that appear in the Product Type Single Landed Cost Estimate window:

Field	Description
Country of Import	Country that imported the product.
Country of Manufacture	Country that manufactured the product.
Country of Export	Country that is exporting the product.
Incoterms	(International Commercial terms) Incoterms decided by the Trading partners. For example, Ex-works, CIF, FOB etc.
Mode of Transport	Mode of transportation. Whether Air, Land or Sea.
HS Code	Harmonized Schedule code of the product. Click Verify to verify its accuracy.
Customs Description	Description of the product as would be used at Customs.
Date of Export	Date of Exporting the product.
Response level	Different duty and tax rates may be applicable depending on preferential trade agreements. The response level selects which scenarios of duty rates are displayed in the result. View all tax rates: All different duty & tax rate scenarios and their resulting landed costs are displayed. You can switch from one to another. View default tax rates: Calculates landed cost for default tax (also the maximum tax) only. View minimum tax rates: Calculates landed cost for the lowest among the possible tax & duty rates.
Incoterm Value	Enter the value of your transaction for the Incoterm you selected.
Incoterm Currency	Select a currency for the Incoterm value you entered in the previous step.
Currency of Results	Select the currency in which the landed cost results should appear.
Quantity
Commercial Unit	Unit of measurement.
Commercial Quantity	Quantity imported.
Reporting Quantity in "UNIT"	Quantity in the product's UOM (Unit of Measure) as defined the basic details of the Product Management Centre.
Charges (Choose the currency for each charge using the drop-down list) Click the calculator icon, to find rates specific to the shipment
Origin Freight	Cost of freight at the origin. Depending on the Incoterm, this field may be disabled.
Origin Charges	Charges at the origin. Depending on the Incoterm, this field may be disabled.
International Freight	International freight charges.
Insurance	Insurance value.
Destination Freight	Destination freight charges.
Destination Charges	Charges as applicable at the port of destination.

Choice - Product Type

The wizard allows you enter the quantity and percentage value of child components.

To calculate landed cost for product type Choice:

1 Click Add Product from the left navigation panel. Fill in the required data. The product Type must be Choice. Click Save.

2 Click Landed Cost; the Landed Cost Estimate page appears (See Figure 3). Enter the required data in this page. See the field definitions below for more information.

Note: If your Landed Cost Estimate page does not look similar to Figure 3, you may need to add components to your product. See Components for more information.

3 Click Submit to view the results of landed cost estimate. See Figure 4. For more information on the field definitions of the landed cost result, see View Landed Cost.

Landed Cost - Choice

Figure 3: Landed Cost Estimate Page - Product Type Choice

Landed Cost Results for Product Type Choice

Figure 4: Landed Cost Estimate Results - Product Type Choice

A list of the fields that appear in the Product Type Choice Landed Cost Estimate window:

Field	Description
Country of Import	Country that imported the product.
Country of Manufacture	Country that manufactured the product.
Country of Export	Country that is exporting the product.
Incoterms	(International Commercial terms) Incoterms decided by the Trading partners. For example, Ex-works, CIF, FOB etc.
Mode of Transport	Mode of transportation. Whether Air, Land or Sea.
Classification Tree	Displays HS codes of component products in a tree structure.
Date of Export	Date of Exporting the product.
Response level	Different duty and tax rates may be applicable depending on preferential trade agreements. The response level selects which scenarios of duty rates are displayed in the result. View all tax rates: All different duty & tax rate scenarios and their resulting landed costs are displayed. You can switch from one to another. View default tax rates: Calculates landed cost for default tax (also the maximum tax) only. View minimum tax rates: Calculates landed cost for the lowest among the possible tax & duty rates.
Incoterm Value	Enter the value of your transaction for the Incoterm you selected.
Incoterm Currency	Select a currency for the Incoterm value you entered in the previous step.
Currency of Results	Select the currency in which the landed cost results should appear.
Quantity (Enter the quantity of each child component separately)
Commercial Unit	Unit of measurement.
Commercial Quantity	Quantity imported.
Reporting Quantity in "UNIT"	Quantity in the child component UOM (Unit of Measure).
Charges (Choose the currency for each charge using the drop-down list) Click the calculator icon, to find rates specific to the shipment
Merchandise Value	Enter the merchandise value or value in percentage for each component.
Origin Freight	Cost of freight at the origin. Depending on the Incoterm, this field may be disabled.
Origin Charges	Charges at the origin. Depending on the Incoterm, this field may be disabled
International Freight	International freight charges.
Insurance	Insurance value.
Destination Freight	Destination freight charges.
Destination Charges	Charges as applicable at the port of destination.

Set - Product Type

The wizard allows you enter the quantity and percentage value of child components.

To calculate landed cost for product type Set:

1 Click Add Product from the left navigation panel. Fill in the required data. The product Type must be Set. Click Save.

2 Click Landed Cost; the Landed Cost Estimate page appears (See Figure 5). Enter the required data in this page. See the field definitions below for more information.

Note: If your Landed Cost Estimate page does not look similar to Figure 5, you may need to add components to your product. See Components for more information.

3 Click Submit to view the results of landed cost estimate. See Figure 6. For more information on the field definitions of the landed cost result, see View Landed Cost.

Landed Cost - Set

Figure 5: Landed Cost Estimate Page - Product Type Set

Landed Cost Results for Product Type Set

Figure 6: Landed Cost Estimate Results - Product Type Set

A list of the fields that appear in the Product Type Set Landed Cost Estimate window:

Field	Description
Country of Import	Name of the country that imported the product.
Set Type	Type of the Set
Country of Manufacture	Country that manufactured the product.
Country of Export	Country that is exporting the product.
Incoterms	(International Commercial terms) Incoterms decided by the Trading partners. For example, Ex-works, CIF, FOB etc.
Mode of Transport	Mode of transportation. Whether Air, Land or Sea.
Classification Tree	Displays HS codes of component products in a tree structure.
Date of Export	Date of Exporting the product.
Response level	Different duty and tax rates may be applicable depending on preferential trade agreements. The response level selects which scenarios of duty rates are displayed in the result. View all tax rates: All different duty & tax rate scenarios and their resulting landed costs are displayed. You can switch from one to another. View default tax rates: Calculates landed cost for default tax (also the maximum tax) only. View minimum tax rates: Calculates landed cost for the lowest among the possible tax & duty rates.
Incoterm Value	Enter the value of your transaction for the Incoterm you selected.
Incoterm Currency	Select a currency for the Incoterm value you entered in the previous step.
Currency of Results	Select the currency in which the landed cost results should appear.
Quantity (Enter the quantity of each child component separately)
Commercial Unit	Unit of measurement.
Commercial Quantity	Quantity imported.
Reporting Quantity in "UNIT"	Quantity in the child component UOM (Unit of Measure).
Charges (Choose the currency for each charge using the drop-down list) Click the calculator icon, to find rates specific to the shipment
Merchandise Value	Enter the merchandise value or value in percentage for each component.
Origin Freight	Cost of freight at the origin. Depending on the Incoterm, this field may be disabled.
Origin Charges	Charges at the origin. Depending on the Incoterm, this field may be disabled
International Freight	International freight charges.
Insurance	Insurance value.
Destination Freight	Destination freight charges.
Destination Charges	Charges as applicable at the port of destination.

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- Created by: Expeditors Technical Communications Department -