Worldwide Exporter Original Guide
Import from India: Landed Cost Checklist for International Buyers
The lowest factory price is not always the lowest delivered cost. Buyers importing from India should compare quotations on the same delivery basis and estimate the complete landed cost before selecting a supplier.
Start with the correct product price basis
Record whether the supplier price is EXW, FCA, FOB, CIF or another agreed basis, including the named place or port. Without this, quotations are not directly comparable.
Add origin costs not included by the supplier
Depending on the Incoterm, these may include pickup, export packing, documentation, terminal handling, customs brokerage and port charges.
Estimate international freight and insurance
Obtain current freight estimates using realistic packed dimensions and weight. Freight markets move, so consider quotation validity and likely shipping date.
Calculate destination charges
Ask your broker or forwarder about destination terminal charges, customs clearance, delivery orders, storage risk and inland transport.
Estimate duty and tax correctly
Use the importing country's tariff classification, customs value rules, origin treatment and applicable taxes. Do not rely only on a supplier's estimate.
Include quality and compliance costs
Samples, inspection, testing, certification, labelling changes and compliance work can be part of the true procurement cost.
Consider inventory and lead-time cost
A lower unit price with a much higher MOQ or longer lead time may increase inventory carrying cost and working-capital requirements.
Compare risk-adjusted value
Factor in supplier reliability, defect risk, documentation quality and delay history. The cheapest initial quotation can become expensive if operational performance is weak.
Frequently asked questions
What is landed cost?
The total cost of acquiring and delivering goods to the intended location, including product price and relevant logistics, border and handling costs.
Can I compare an EXW quote directly with a CIF quote?
Not fairly. Convert quotations to a common landed-cost basis.
Does the supplier determine import duty?
The importer should verify classification and destination-country duty treatment with official sources or a qualified customs professional.
Continue on Worldwide Exporter
Use this guide as a planning resource, then browse products, discover suppliers and companies, explore B2B categories or read the official Worldwide Exporter platform guide. For regulated, legal, customs or banking decisions, verify current requirements with the relevant official authority or qualified professional.