To calculate landed cost of imported goods

1. Landing charges @ 1% is to be added to CIF Value.

2. Education cess on CVD has been removed. E.cess is applicable on Customs + CVD.

3. Education Cess is 2% and SHEC is 1%. 

 

Basic		100.00
Other Charges		26.00
CIF		126.00
Landing Charges (1%)		1.26
Assessable Value		127.26
Exchange Rate (to be taken as notified by CBEC)		57.75
Assesable Value INR		7,349.27
Basic Customs	7.50%	551.19
Total for CVD		7,900.46
CVD	10%	790.05
E Cess and SHEC (on customs and CVD)	3%	40.24
Total for Additional duty u/s 3(5)		8,730.74
ADC	4%	349.23
		9,079.97
Clearance	3%	220.48
Octroi	4%	293.97
Local Transpor	3%	220.48
Total Cost		9,814.90
Less Landing Charges		-72.77
Total Landed Cost		9,742.13

 

Gentlemen, There's much to agree and so much to agree... but no offense meant. Per se, the commodity of imports and the corresponding value will govern the cost / expenses for the following: 1. Packing Charges 2. Inland Freight upto nearest port of exit 3. FOB/FCA charges 4. Clearance Cost 5. Octroi (wherever applicable) 6. Domestic / Local Freight You can't apply a general rule of add-on percentage... it's highly misleading to say the least. To substantiate this logic, it surprised me a bit to see that cost of air-freight and sea-freight has been assumed as same. How can that ever be??? Let's say you are importing any instrument of the size of a mobile-phone or laptop vis-a-vis a length of 6Mtr long steel tube of comparable values. Would your landed costs be same (based on percentage formula)? Sure, they will go haywire. Further, for the cost heads mentioned above; charges (as percent) look so jacked up. Wonder if we are living times of blissful luxury? CBEC notified rate for Customs (Imports) will have to be applied is correct. This post / thread got initiated about 24 hours back. I am not sure what is the basis of exchange rates considered. Is it not INR 56.85/USD currently?? My own opinion is that instead of "fine-tuning", you are making it broader. To fine tune, please classify 3 or 4 major commodities / categories of your import (f that is the case), their weight per shipment lot, corresponding value and the mode of shipment. Are you importing everything in EXW basis?? If not, classify your imports corresponding to INCOTERMS being offered by your shipper.

Mr Bhattacharya,

I had applied 57.75 (55+5%) which was the rate used by querist with a rider that CBEC rate has to be applied so that he can make out a comparision with his calculation.

 

If in question , landing charges are given Rs 1000. What should i do ,should i take Rs1000 or 1% on CIF?

This 1% landing charge is calculated for duty calculation...... If you get 1000 as landing charge in customs duty calculation by that you can get the cif charge.1000/1*100 = 100,000.

CIF = 100,000

LANDING COST = 1 OF CIF = 1000

ASSESSABLE VALUE = CIF + Landing Cost = 101,000/-
 

Hi Suraj,

would like the Landing cost calculation in excel sheet, please share.

 

Regd. Deepak

my email id is drastogi76 @ gmail.com

why u have less landing charges ie -72 and how u have calculated it?

why landing charges 72 is deducted ? & how u have calculated that

Please give the landing cost calculation of import shipment in excel

Please give in excel sheet

Dear Sir,

Good Morning

I would like request to you Can you please send me Landed Costing formula on my below email.

laxmanparmar41 @ gmail.com

Thanks

Laxman Parmar