Landed cost estimates the total cost of bringing a product to its destination, not just the supplier’s quoted price. A realistic calculation supports pricing and helps prevent margin surprises.
Start with the requirements
Start with the purchase price and add applicable freight, insurance, handling, customs duties, clearance charges, inspection, local delivery and other transaction-specific costs. Record the currency and exchange rate used. Separate recoverable taxes from true costs where appropriate, with guidance from your accountant.
Build a repeatable process
Calculate cost per sellable unit after accounting for damaged goods, shortages or other expected losses. Compare quotes using the same delivery terms and assumptions. Keep the supplier quotation, freight quote, customs documents and invoices together so actual landed cost can be compared with the estimate after delivery.
Check the latest guidance
Duty, VAT and documentation depend on the product classification, origin, destination and current rules. Verify tariff treatment and tax recovery with UAE Customs, the FTA or a qualified customs broker before finalising prices.