Import Duties & Landed Cost: Project RFQ Calculator
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 most jurisdictions, including the EU and UK, duty is charged on the CIF value and VAT is charged on CIF plus duty plus fees, so the tax compounds. The uplift varies with HS code, origin, trade agreements and freight, so confirm rates with a licensed customs broker.
- Line
- Invoice (FOB)
- Amount (USD)
- 200,000
- Line
- Freight
- Amount (USD)
- 12,000
- Line
- Insurance
- Amount (USD)
- 1,500
- Line
- CIF value
- Amount (USD)
- 213,500
- Line
- Duty base (CIF)
- Amount (USD)
- 213,500
- Line
- Customs duty @ 6%
- Amount (USD)
- 12,810
- Line
- Other clearance fees
- Amount (USD)
- 1,000
- Line
- VAT / GST @ 20% (on CIF + duty + fees)
- Amount (USD)
- 45,462
- Line
- Total landed cost
- Amount (USD)
- 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. A negative ex-works price is rejected as invalid input.
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.
Carry this landed-cost basis into the RFQ
Your inputs already define most of an RFQ brief. Add the project country and sector to identify if you are early-stage (planning) or financing-ready (submission). Every request from USD 250,000 receives a human review before any supplier outreach.
Meets the USD 250,000 value minimum only; scope and buyer authority still require human review.
Screening outputs only. Final scope, pricing and financing terms depend on technical specification, supplier quotations and lender approval.
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.
How do I calculate import VAT?+
Import VAT is usually charged on the customs value plus duty and certain import costs, not on the invoice alone. In the EU, the taxable amount includes the customs value, duties and incidental costs such as transport to the first place of destination (VAT Directive 2006/112/EC, Article 86). Enter the VAT rate and choose the CIF-plus-duty base in the calculator; confirm the rate and base with your customs broker.
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.
How do I compare supplier quotes with different Incoterms?+
Bring every offer to the same delivered basis before comparing. An EXW or FOB quote needs freight, insurance, duty, clearance and VAT/GST added; a DAP quote already includes freight to site but not duty or import taxes; a DDP quote should include them, so check what the supplier assumed. Run each offer through this calculator with its own freight and insurance figures, then compare the total landed cost rather than the invoice price.
What does the default example show?+
With the default inputs — USD 200,000 FOB invoice, USD 12,000 freight, USD 1,500 insurance, 6% duty on CIF, USD 1,000 clearance fees and 20% VAT on CIF plus duty and fees — the CIF value is USD 213,500, duty is USD 12,810, VAT is USD 45,462 and total landed cost is USD 272,772, about 36% above the invoice. These are illustrative inputs, not rates for any specific country or HS code.
Complete project workflow
From first estimate to reviewed project decision
Use the stages that fit your project. Calculator results can feed the editable RFQ; the saved RFQ becomes the baseline for readiness and proposal comparison.
- 1. PlanScope, capacity, utilities, CAPEX and lifecycle cost.
- 2. Test financeDebt capacity, DSCR and independent-provider pathways.
- 3. Define FATWrite measurable acceptance and release criteria.
- 4. Build RFQTurn assumptions into one editable procurement brief.
- 5. Check readinessFind missing scope before the RFQ is reviewed.
- 6. CompareEqualize proposals against the approved RFQ baseline.
- 7. Human reviewGlobal B2B Group reviews the project before any approved introduction.
No supplier contact, specialist-platform routing, financing decision or introduction happens automatically. Final action requires Global B2B Group and authorized-team approval.