True cost per unit of imported goods.
Use it before you quote or reorder imported goods. Enter the shipment's freight, insurance, fees and exchange rate with each item's price and duty, and it gives the true landed cost per unit in AUD.
Freight, insurance and fees are shared across items by goods value. GST is left out because it is normally recoverable.
Duty is applied to goods plus freight plus insurance, which is a common customs value basis. Confirm the duty basis, rates and any anti-dumping duty with your customs broker before quoting.
Landed cost is the total cost of getting a product to your door, not just the supplier price.
1,000 units at US$4.00 (A$6.06 at 0.66) plus A$1,800 freight, A$60 insurance, 5% duty on the customs value, and A$450 in broker and port fees gives a landed cost of about A$8.69 per unit, 43% above the ex-works price.
Product cost, freight, insurance, duties and taxes, customs and broker fees, handling and local delivery.
Import GST is usually claimable as an input tax credit by GST-registered businesses, so many companies show it separately. Check with your accountant.
Duty is generally a percentage of the customs value under the tariff classification of the goods, and free trade agreements may reduce it. Confirm with a licensed customs broker.