What is "landed cost" in importing?

Landed cost is the total cost of getting a product from the supplier to your warehouse or customer. Landed Cost = Product cost + Freight + Insurance + Import duty + VAT/GST + Other fees Component breakdown: Product cost: Price you pay the supplier (commercial invoice value). Freight: Air ($4–8/kg internationally, fast), Sea ($1,500–5,000/container, 4–6 weeks, cheap for volume). Insurance: Typically 0.5–1% of cargo value. Import duty: Tariff based on HS code, CIF value, and origin. VAT/GST: Applied on CIF + duty. Reclaimable by VAT-registered businesses. Other fees: Customs broker ($75–$250), port handling ($100–400), delivery ($100–500). Example — Laptop from China to Portugal: - Product: $800 - Air freight: $120, Insurance: $9 - CIF: $929 - Duty (0% ITA): $0 - IVA 23%: $213.67 - Broker: $150, Port handling: $80 - Total landed cost: $1,372.67 Knowing your landed cost is essential for correct pricing and accurate supplier comparison.