Short answer
Compare food processing equipment offers on total landed cost, not supplier price. First make every offer cover the same scope, Incoterm and currency. Then add each cost layer the supplier did not include until all offers reach the same point: equipment installed, commissioned and accepted at your site.
This article gives the cost layers and a checklist. It contains no price figures; use your own quotes, your official customs tariff and your broker's advice.
The cost layers
| Layer | What it covers | Where the number comes from |
|---|---|---|
| Supplier price | Equipment in the stated scope | The offer, at its Incoterm and currency |
| Packing & export crating | Seaworthy packing, documentation | Offer or supplier confirmation |
| Main freight & insurance | Port-to-port or door-to-door | Depends on Incoterm (ICC Incoterms® 2020) |
| Import duties & taxes | Customs duty, VAT/IVA or equivalents | Official tariff by HS code; confirmed by your broker |
| Clearance & inland transport | Broker, port charges, trucking to site | Forwarder quote |
| Rigging & installation | Cranes, mechanical/electrical installation | Offer or local contractor |
| Commissioning & FAT/SAT | Supplier engineers on site, travel, test materials | Offer: days included and day rate beyond |
| Training & first spares | Operator/maintenance training, commissioning and 2-year spares | Offer or recommended spares list |
| Payment terms & currency | Advance payments, guarantees, exchange exposure | Your finance team |
| Contingency | Undefined items and risk | Your CAPEX policy |
Bid-normalization checklist
- Same scope: compare each offer line by line against your URS; list missing items as questions.
- Same delivery point: convert every offer to one Incoterm before adding freight and duties.
- Same currency and date: fix one exchange rate and note it.
- Same capacity basis: guaranteed capacity at your product spec, not nominal maximum.
- Same commissioning support: number of supplier days included, and the rate beyond.
- Same acceptance: FAT/SAT tests and the penalty or remedy if performance is missed.
- Same spares and training: a defined list, not 'as required'.
- Exclusions signed by each bidder.
Once normalized, the supplier proposal comparison tool records the comparison and the landed-cost calculator structures the totals.
Sources
- International Chamber of Commerce — Incoterms® rules (checked 17 Oct 2026)
- World Customs Organization — the Harmonized System (checked 17 Oct 2026)
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Frequently asked questions
What is total landed cost for processing equipment?
The full cost to have the equipment installed, commissioned and accepted at your site: the supplier price plus packing, freight, insurance, import duties and taxes, customs clearance, inland transport, rigging, installation, commissioning, training, first spares and the cost of the payment terms.
Why do two quotes for the same line differ so much?
Usually because they are not quoting the same thing: different Incoterms, currencies, scope boundaries, commissioning support or spares. Normalizing scope and terms first often explains most of the gap.
Where do I find the import duty rate?
From your country's official customs tariff, using the HS code of each machine. Ask your customs broker to confirm the classification; do not rely on a supplier's estimate.
Does Global B2B Group calculate landed cost for me?
Our free landed-cost calculator gives a structured estimate from your own inputs. For projects from USD 250,000, our team can also request offers on a common basis so the comparison is like-for-like.
