Landed Cost Explained (Plain English)
Landed cost is what your shipment truly costs once it reaches your door — not just what you paid the supplier. This guide shows what’s included and what importers forget most often.
What “landed cost” includes
- Goods value: what you pay for the product
- Freight: shipping cost (air/ocean/ground)
- Insurance: cargo insurance (if purchased or included)
- Duties: based on HS code + origin + destination
- Taxes: GST/HST/VAT depending on the country
- Broker fees: clearance + documentation processing
- Port/terminal charges: handling, storage, admin
- Delivery: last-mile trucking or courier fees
The #1 reason landed cost surprises people
People plan around supplier price + shipping… and forget that duty/tax/brokerage can change everything. Even small fees stack fast across multiple shipments.
Common “forgotten costs” checklist
- Customs broker disbursement/advancement fees
- Warehouse storage (if customs or docs delay release)
- Exam/inspection fees (random or risk-based)
- Reweigh/re-measure charges (dimension/weight corrections)
- Special handling for batteries, liquids, chemicals, food-contact
- Incorrect HS code causing reclassification + retro charges
Fast way to sanity-check a shipment
- Confirm a realistic HS code range (don’t guess from keywords only)
- Estimate duty rate range (worst-case + best-case)
- Add taxes and 2–3 typical clearance/handling fees
- Divide by units to find true landed cost per unit
Best next step
Use a landed cost snapshot tool before you pay a supplier invoice — not after the shipment arrives. If the numbers look tight, adjust your order quantity, shipping mode, or product choice.
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The Broker-Ready Trade Pack generates one clean PDF that helps brokers quote faster: HS summary, duty snapshot, invoice draft, packing list, and compliance checklist.
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