In short: the price quoted by the factory is only part of the final cost. To know what an imported product really costs, you need to add up the factory price, packaging, freight, insurance, any customs duties, import VAT, clearance and delivery fees, and the cost of service (agent, quality control). This is your landed cost in store.
The cost items to plan for
1. The factory price
The unit price negotiated with the manufacturer. It depends mainly on quantity, materials, level of finish and customisation. As a rule, the higher the quantity, the lower the unit price.
2. Packaging and customisation
Labels, individual packaging, branded boxes, shipping cartons: these are sometimes included, sometimes charged separately. Always check the quote.
3. International freight
The cost depends on the mode (sea, air, rail), the volume, the weight and the time of year. Sea freight is usually the most economical for large volumes; air is the fastest but the most expensive.
4. Insurance
It covers the goods against loss or damage in transit. Depending on the Incoterm, it is paid by the seller or the buyer.
5. Customs duties
They depend on the product's customs code (HS code) and its origin. Some products carry no duty, others do. The applicable rate can be checked in the European Union's official database (TARIC).
6. Import VAT
When goods enter the European Union, VAT generally applies to the value of the goods plus freight and duties. For a VAT-registered business it is usually recoverable, depending on your country's rules. Your accountant will confirm your situation.
7. Customs clearance and final delivery
Customs declaration fees, handling at the port or airport, then delivery to your address.
8. Service and quality control
The sourcing agent's commission or fee, pre-shipment inspection, samples: these costs are an investment that prevents far bigger losses.
How to calculate your landed cost
Add up all the items above for the whole order, then divide by the number of units. Then compare this landed cost in store with your selling price to see your real margin. It is this figure, not the factory price alone, that you should compare with a wholesaler's price.
Pitfalls to avoid
- comparing factory prices only between suppliers;
- forgetting the costs on arrival (port, clearance, delivery);
- ignoring the impact of exchange rates;
- leaving no margin for the unexpected.
Frequently asked questions
Why does a DDP quote look more expensive? Because it includes everything up to your door (freight, customs, taxes). It is often easier to compare with a wholesaler's price.
Is the customs duty rate the same for every product? No, it depends on each product's HS code. Check the TARIC database or ask us to identify it with you.
Sources and useful links
- EU TARIC database: ec.europa.eu/taxation_customs
- Access2Markets (European Commission tool): trade.ec.europa.eu/access-to-markets
- Belgian customs: finances.belgium.be — French customs: douane.gouv.fr
General information, for guidance only. The rates and rules that apply to your situation should be checked with official sources or a professional.
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