Calculate the landed cost of imported goods: purchase price, freight, insurance, customs duty and local delivery, plus the cost per unit. Useful for traders, importers, and procurement managers costing purchase orders.
CIF = Purchase Price + Freight + Insurance
Duty = CIF × Customs Rate %
Total = CIF + Duty + Local Delivery
Purchase $5,000 + freight $800 + insurance $100 = CIF $5,900. Duty at 5% = $295. Local delivery $200. Total landed cost = $6,395.
CIF (Cost, Insurance, Freight) is the valuation basis used by most customs authorities worldwide to calculate import duties. It equals the supplier invoice price plus the cost of international freight and insurance to the destination port.
Landed cost is everything you pay to bring a product from the supplier's factory to your warehouse: purchase price + international freight + insurance + customs duty + local port and clearing fees + inland delivery. This calculator adds the purchase price, freight, insurance, duty and local delivery; enter port and clearing fees in the local delivery field so they are counted too.
Duty rates depend on the product's HS (Harmonized System) code, its country of origin, and the destination country. GCC countries typically apply a 5% standard tariff on most goods, with higher rates on tobacco, alcohol, and some luxury items. Always verify with your customs broker or the official customs authority tariff schedule.
Under a free trade agreement, goods that originate in a partner country may qualify for reduced or zero import duty. As a bloc, the GCC has agreements in force with Singapore and with the EFTA states (Iceland, Liechtenstein, Norway and Switzerland), and several GCC members have bilateral agreements of their own. To claim the preferential rate, you need a certificate of origin showing your goods meet the agreement's rules of origin.
FOB (Free On Board) means the seller's price only covers costs until goods are loaded onto the vessel. CIF means the seller's price includes international freight and insurance to the destination port. Most customs authorities use CIF for duty calculation; the USA is a notable exception and uses FOB.
Open the free Import Cost Calculator now, or browse the full business calculator suite.