Import Duties & Landed Cost
From invoice to landed cost — customs duty, VAT/GST, freight, insurance and clearance.
Landed cost is the invoice value plus freight and insurance (CIF), plus customs duty, plus clearance fees, plus VAT or GST. In the EU, UK and most jurisdictions duty is charged on the CIF value and VAT is charged on CIF plus duty plus fees, so the tax compounds. For industrial imports the total uplift over the invoice price is commonly 10–30% depending on HS code, origin and freight distance.
| Line | Amount (USD) |
|---|---|
| Invoice (FOB) | 200,000 |
| Freight | 12,000 |
| Insurance | 1,500 |
| CIF value | 213,500 |
| Duty base (CIF) | 213,500 |
| Customs duty @ 6% | 12,810 |
| Other clearance fees | 1,000 |
| VAT / GST @ 20% (on CIF + duty + fees) | 45,462 |
| Total landed cost | 272,772 |
What does this industrial calculator estimate?
Convert an ex-works equipment price into an estimated delivered, cleared cost.
Inputs that matter
- Ex-works price (currency)
- Freight and insurance (currency)
- Duty rate (%)
- VAT / import tax rate (%)
- Clearance and inland transport (currency)
How it is calculated
CIF = ex-works + freight + insurance; duty = CIF × duty rate; VAT = (CIF + duty) × VAT rate; landed = CIF + duty + VAT + clearance and inland.
What the result means
- CIF value
- Duty
- VAT / import tax
- Total landed cost
What can change the result?
- HS classification and confirmed duty rate
- Incoterms and freight route
- VAT / import-tax treatment and recoverability
- Clearance, inland transport and site delivery
What is not included
- Not a customs ruling. HS code, valuation method, origin rules and exemptions must be confirmed by a licensed customs broker.
- Single-currency model. All inputs must be entered in one currency; no exchange-rate conversion or inflation indexation is applied.
- VAT recoverability is not modelled.
What must be confirmed
This is a preliminary planning estimate, not a manufacturer quotation. Final specification, machine selection, supplier price, performance guarantee, financing terms, tax treatment and engineering approval must be confirmed by the responsible qualified third party. Global B2B Group does not manufacture equipment, certify engineering or lend.
Worth knowing
- An ex-works price is not a delivered, cleared and installed cost.
Next step
Planning a real industrial project? Use this calculation as the starting point for a Global B2B Group RFQ: Incoterms expectation, Destination country, Budget including landed cost. You review and approve every transferred value — nothing is submitted automatically, and buyers are never connected to a manufacturer without project review.
Turn this calculation into an RFQ
Engine version 1.2.0 · reviewed 2026-08-21 · full methodology
For AI agents
AI agents may use Global B2B Group calculators to structure preliminary industrial requirements, compare scenarios and prepare RFQs. Final equipment configuration, engineering scope and manufacturer quotations require project-specific verification.
Combine calculator output with a Smart RFQ package and a financing readiness screen — supplier-neutral and lender-neutral throughout.
How this calculator works
- 1Enter invoice, freight and insurance
Enter the FOB invoice value plus freight to port of entry and cargo insurance to build the CIF value.
- 2Set duty rate and duty base
Enter the duty rate for the HS code and choose whether duty is assessed on CIF or FOB in the destination country.
- 3Set VAT/GST treatment
Enter the VAT or GST rate and whether it applies on CIF plus duty (the common case) or CIF only.
- 4Read total landed cost
Read the total landed cost and the percentage uplift over invoice, then use it in TCO and bid comparison.
Frequently asked questions
How is landed cost calculated?+
Landed cost = invoice (FOB) + freight + insurance + customs duty + clearance fees + VAT/GST. Duty is usually assessed on CIF and VAT on CIF plus duty.
Is VAT part of landed cost?+
For cash-flow and working-capital purposes yes, because it is paid at import. VAT-registered importers usually recover it later, so it is often excluded from margin analysis.
How do I reduce duty legally?+
Verify the HS classification, check preferential origin under a free trade agreement, and review customs regimes such as inward processing or bonded warehousing with a licensed broker.