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Prior to importing goods from China to the United States, I believe most US importers are concerned about the final price per unit when the goods are distributed in the local market, with everything considered. What’s the total cost of imports from China to the USA? What’s the price of a locally made product? Is made-in-China more competitive or shall I just buy from local?We are introducing a new term “landed cost” here.
What is landed cost?
A “landed cost” is the final cost of product plus all associated shipping and logistics costs for delivering the goods to its destination, with insurance and import duty paid.The formula can be simplified as: product cost + shipping cost+ insurance + import duty
For more info about shipping, click Door to door shipping from China to the USA
For cost shipping cost illustration, click Cost structure of shipping a 40ft container from China to the US door to door
How to calculate landed cost under different incoterms? (sea)
Actually incoterm doesn’t change the cost structure, it only decides who pays what.EXW
Product cost + door to door shipping + insurance + import duty
FOB (the price you pay seller includes origin logistics services, and supplier will cover all risks and costs until container is loaded on vessel at port of loading)
Procut cost + port to door shipping + insurance + import duty
CIF (product cost include shipping to your port and insurance)
Product cost + port do door shipping + import duty
You’ll need to find a broker to clear the shipment, pay duty on your behalf, arrange delivery from port to your warehouse.
FCA (seller is responsible for export clearance and delivery of goods to the carrier at the named place)
Product cost + port to door shipping + import duty + origin loading/offloading/warehouse/trucking services, etc
If you are interested in UCS, feel free to contact us, we are available on several messenger platforms.
To start working with UCS on your next shipment from China to the USA, simply get a shipping solution & freight quote from China.
