Contents
Key points
- Think in landed cost: supplier price + transport + duties and taxes + extra fees, divided by the number of units.
- On a small order, fixed fees (paperwork, clearance, delivery) weigh heavily and can add 20 to 40% to the FOB price.
- Customs duties are calculated on the value of the goods plus transport to the EU border, not on the FOB price alone.
- Import VAT is due, but VAT-registered businesses can often account for it on their VAT return rather than pay it upfront.
The cost items of an import, from factory to warehouse
| Cost item | Billed by | Order of magnitude |
|---|---|---|
| Goods (FOB price) | Supplier | Negotiated, depending on quantity and specs |
| Samples and express shipping | Supplier, express carrier | From a few dozen to a few hundred euros |
| Pre-shipment quality control | Agent or inspection company | Often €200 to €350 per inspection day |
| Main freight, sea or air | Freight forwarder | Depends on volume, weight, route and season |
| Surcharges and port charges | Freight forwarder | Included in an all-in rate, otherwise extra |
| Cargo insurance | Forwarder or insurer | Usually under 0.5% of the insured value |
| Import customs clearance | Customs broker | Flat fee per declaration |
| Customs duties | Customs | From 0% to over 12% depending on the tariff code, plus any anti-dumping duties |
| Import VAT | Customs | Destination country rate (20% in France) |
| Final delivery | Haulier | Depends on distance and number of pallets |
| Producer responsibility fees (EPR) | Compliance scheme | Depends on category: furniture, textiles, electronics… |
| Bank and FX fees | Bank | Depends on the bank and payment currency |
How customs duties and VAT are calculated
Customs value is the price of the goods plus transport and insurance up to entry into the European Union. Duties apply to that value, at the rate attached to your product's TARIC code (10 digits).
Import VAT is charged at the destination country's rate, on the customs value plus duties and transport to the final destination. In France it is 20% for most products, and since 1 January 2022 VAT-registered businesses reverse-charge it on their VAT return. Several other EU countries and the UK offer similar postponed accounting schemes.
Some Chinese products also carry anti-dumping duties, sometimes very high ones: e-bikes, ceramic tableware and certain steel or aluminium products, for example. Check your product code before you order, not after. The customs guide explains how to find it.
Every SINVEX sourcing study includes a landed-cost estimate: freight, duties, taxes. Start with a first call, it is free.
Qualify my projectWorked example: 2,000 items shipped LCL to France
Assumptions: 2,000 items at €6 FOB, 6 CBM LCL, 4% customs duty. Figures are illustrative.
| Cost item | Calculation | Amount excl. VAT |
|---|---|---|
| Goods | 2,000 × €6.00 FOB | €12,000 |
| Pre-shipment quality control | 1 inspection day | €300 |
| All-in LCL freight excl. customs | 6 CBM × ≈ €340 | €2,040 |
| Insurance | ≈ 0.4% of value | €50 |
| Customs clearance | Broker's flat fee | €150 |
| Customs duties | 4% × ≈ €13,400 customs value | €536 |
| Delivery to your warehouse | 2 pallets | €180 |
| Total excl. VAT | €15,256 | |
| Landed cost per item | €15,256 ÷ 2,000 | ≈ €7.63 |
The landed cost is about 27% above the FOB price. Import VAT of roughly €2,820 is reverse-charged by a VAT-registered French business and does not appear in the cost. On an order twice as large, several fixed fees stay the same and the gap narrows.
Where the nasty surprises hide
- Destination charges billed on arrival when the supplier sold CIF.
- Demurrage and storage at the port when a document is missing or the balance is paid late.
- A customs inspection (scanner or physical check), billed to the importer.
- Relabelling or repacking at destination because labelling was not compliant.
- Exchange-rate movements between the deposit and the balance.
- Minimum charges on small shipments: 1 CBM billed even for 0.4 CBM.
How to make your cost price reliable
- Ask for a dated all-in freight quote, with origin and destination charges itemised.
- Check the tariff code and duty rate before confirming the order.
- Budget for quality control and samples from the start.
- Keep a contingency of around 5% on a first import.
- Pay the balance after inspection, not before.
Frequently asked questions
Add up the goods, samples, quality control, freight, insurance, clearance, customs duties and delivery, then divide by the number of units. Import VAT that a business can recover or reverse-charge is not part of the cost.
On the customs value: the price of the goods plus transport and insurance up to entry into the EU, at the rate matching the product's TARIC code.
Yes, at the destination country's rate. Many EU countries and the UK let VAT-registered businesses account for it on their VAT return instead of paying it at the border.
As a guide, a 40ft container to Europe is often negotiated between €5,500 and €8,000, excluding customs and taxes. Rates change every week: only a dated quote is binding.