- Purchase price in USD x Exchange Rate ;[a]
- Freight Charges (USD80 to 120 Per Cubic Meter by Sea/By air $3 to $12) ; [b]
- Customs Duty on cost of goods [a+b] x % Tariff Rate = [c]
- Commission : 5% on [a + b + c] = [d]
- Applying Local Taxes CST/VAT (% as per tariff x d) = [e]
- Local Transport from port till your warehouse [f]
- Total Amount payable in INR [e + f]
The below example will illustrate the costing of Product A which you can relate to your product.
Product A is Costing USD 20 ordered quantity is 100pcs; Total CBM (Cubic Meter) of the material is 2 M2. Customs Duty lets say is 15% the landing cost will be as follows:
Purchase price: 20 X INR 60 (Exchange rate taken as 1USD= INR 60) = INR 1200
Freight Charges for each product: 2 M2 / 100Pcs = 0.02 (CBM/Pc) X $100 = INR 130
Customs Duty : (1200+130) X 15% = INR 200
Commission : [1200+130+200] x 5% = INR 77
Landing cost: INR 1607
Local Taxes and transport as applicable will be taken at actual.
CBM (Cubic Meter) Space taken in cubic meter i.e. 1 CBM is 1m x 1m x 1m