Calculating import costs in advance: what consultancy delivers

The structure of import costs is hard to change once the contract is signed: the delivery term and the price are already agreed. The calculation belongs to the negotiation stage, where customs consultancy is most useful.

Import cost is more than the figure on the invoice

The landed cost is made up of several items:

the contract price of the goods
international carriage and cargo insurance
customs duty, clearance fees, VAT and excise
expenses for certificates and permits
storage, warehousing and terminal handling
broker services, delivery to the address, bank charges and conversion

The delivery term decides who pays

The Incoterms 2020 rules divide costs and risks between seller and buyer; they do not govern title or payment terms.

EXW — most of the costs, export clearance included, sit with the buyer
FCA — the seller clears the goods for export, the buyer arranges carriage
FOB — risk passes once the goods are on board, freight is the buyer's
CFR — the seller pays freight but not insurance, risk passes at the port of loading
CIF — the seller pays freight and insures the cargo, risk still passes at loading
DAP — the goods are delivered at the destination, import clearance is the buyer's
DDP — import payments are the seller's too

The term also affects the customs value

Carriage, insurance and loading are added to the customs value to the extent the legislation sets, while inland carriage is not — so EXW and DDP prices are not declared alike.

What we need in order to prepare an estimate

a technical description of the goods and their intended use
the country of origin and the means of proving it
the contract price, the currency and the delivery term
gross and net weight, volume, number of packages
the route and the mode of transport

Where the commodity code or the origin looks open to dispute, an electronic application to the State Customs Committee can secure an advance ruling that binds the customs authorities.

When consultancy pays for itself

a document that arrives late turns into storage and demurrage charges
an error in the commodity code brings an additional assessment of duties
a certificate requirement found too late holds the cargo at the post
with repeat imports, a well-built supply process saves on every consignment

Send us the description of the goods, the draft invoice and the route: we will set out the cost items and say which documents to prepare in advance. Preparing the customs declaration continues that groundwork.