A cheap FOB price is not a cheap import. Landed cost is what you actually pay to put goods in your warehouse. Importers who skip the full stack discover margin after the container arrives.

Core Landed Cost Stack

Typical components:

1. Product cost (as per Incoterm) 2. International freight (air or sea) 3. Insurance (if not included) 4. Destination terminal / THC and documentation 5. Customs duty, taxes, and levies on the assessment basis 6. Broker and examination-related costs 7. Inland haulage to warehouse 8. Buffer for demurrage / storage if clearance slips

Miss item 8 and one delayed GD can erase the “savings” from a cheap ocean rate.

Incoterms Change Who Pays What

Under FOB, you control freight but own destination surprises. Under CIF/CFR, freight may be prepaid — still verify what is excluded at destination. “Seller arranged shipping” does not mean “no Pakistani charges.”

Duty Is Not a Flat Guess

Duty depends on HS classification and assessment value. Related-party pricing and incomplete freight/insurance additions create WeBOC queries. Build duty estimates with your broker using the intended HS code — not a competitor’s rumour.

Freight Quote Traps

Compare quotes on equal scope:

Door-to-port vs port-to-port
THC included?
VGM, seal, documentation line items
Free demurrage days stated?

A lower ocean rate with three free days vs a slightly higher rate with seven free days can reverse the landed outcome if clearance is slow.

Simple Pre-PO Checklist

Confirm Incoterm and named place
Get freight estimate for actual weight/volume
Broker duty estimate for HS + origin
Inland haul quote to your city
Add a contingency % for exam/storage on first-time suppliers

MTX Help

We quote freight clearly and flag destination cost categories we know will appear. We do not replace your customs broker on duty calculation — we make sure freight and timeline assumptions in your landed cost are realistic.

Calculate landed cost before you negotiate the last cent of product price. That is where import margin is won or lost.