Your supplier quotes FOB €10,000. Your actual cost is €11,500+. This guide walks through every component of landed cost, with worked examples for common Asia-to-EU manufacturing import scenarios.
Get an EUR-native quote →Landed cost has 7 main components. Each is explained below with typical ranges for a €10,000 FOB CNC order from China to Germany:
| Component | How it's calculated | Typical range | Example (€10k FOB) |
|---|---|---|---|
| 1. FOB price | Supplier quote, ex-factory + origin charges | — | €10,000 |
| 2. International freight | Sea LCL: €300–€900/cbm. Air: €4–€12/kg. FCL 20ft: €1,200–€2,800 | 3–9% FOB for sea | €620 |
| 3. Insurance | 0.25–0.5% of (FOB + freight) | 0.3% typical | €32 |
| 4. Import duty | % of CIF value (FOB + freight + insurance). Rate from TARIC. | 0–25% depending on HS code | €396 (3.7% HS 8466) |
| 5. Customs broker | Fixed fee per customs entry | €80–€350 | €120 |
| 6. Pre-shipment inspection | Third-party inspector fee (SGS, BV, TÜV) | €200–€450 per visit | €280 |
| 7. Last-mile delivery | Port to your warehouse (overland freight) | €80–€300 | €120 |
| Total landed cost (ex-VAT) | €11,568 (+15.7%) | ||
| VAT at import (Germany, 19%) | 19% of (CIF value + duty). Reclaimable if VAT-registered. | Cash-flow cost | €2,088 (reclaimable) |
These are indicative duty rates for common manufacturing imports from China. Always verify current rates in TARIC — rates change with trade agreements and anti-dumping measures.
| Product type | HS heading | MFN duty (China) | Anti-dumping? |
|---|---|---|---|
| CNC aluminium parts | 8466 | 3.7% | No |
| CNC steel parts | 7326 | 2.7% | Check by HS sub-heading |
| Injection-moulded plastic parts | 3926 | 6.5% | No |
| Sheet metal fabricated parts | 7308/7326 | 2.7–3.7% | Steel: check AD duties |
| Aluminium extrusions | 7604 | 3.0% + ADD 29.2% | Yes — anti-dumping |
| Stainless steel tubes/pipes | 7306 | 0% + ADD varies | Yes — check sub-heading |
Anti-dumping duties (ADD) can add 15–80% on top of MFN duties. Always check before quoting landed cost to your customer.
| Mode | Cost | Transit time (China→Germany) | Best for |
|---|---|---|---|
| Sea LCL (shared container) | €300–€900 per cbm | 25–35 days | Orders >€2,000, lead time not critical |
| Sea FCL (full container) | €1,200–€2,800 per 20ft box | 25–35 days | Large volume orders >8–10 cbm |
| Rail (China-Europe Express) | €1,500–€3,500 per cbm | 14–20 days | Time-sensitive, medium value |
| Air freight | €4–€12 per kg | 3–7 days | Urgent, high value/weight ratio, <100 kg |
The break-even between sea and air typically occurs when part value is >€500/kg and delivery urgency justifies the 4–5× freight premium. For standard CNC parts (aluminium: ~2.7 kg/L), air freight only makes economic sense for very small urgent batches.
Full sea vs rail vs air comparison →What is landed cost?
Landed cost is the total cost of a product arriving at your facility: FOB price + international freight + insurance + import duty + VAT (if not immediately reclaimable) + customs broker fee + last-mile delivery. It is always higher than the supplier's quoted price.
How do I find the EU import duty rate for my product?
Use the EU TARIC database (taxation.ec.europa.eu/taric). Enter the HS code of your product and your country of origin. The tool shows the applicable duty rate, any anti-dumping duties, and required certificates.
Is VAT a real cost on imported goods?
VAT is paid at customs import but is reclaimable on your next VAT return (if you're VAT-registered). It is a cash-flow cost (typically 6–8 weeks until reclaim) but not a permanent cost. For non-VAT-registered businesses, it is a hard cost.
What is the difference between FOB, CIF, and DDP?
FOB (Free On Board): you pay freight and insurance from the origin port. CIF (Cost, Insurance, Freight): supplier pays freight and insurance to destination port. DDP (Delivered Duty Paid): supplier delivers to your door, pays all duties and taxes. DDP sounds simple but hides the actual cost structure — use FOB with your own freight forwarder for cost transparency.