This tool converts Chinese-side pricing logic into a transparent estimate so you know what to ask and what to expect.
This guide is not a blog article.
It is a working reference used to break down supplier quotes, identify hidden costs, and detect compliance risks before shipping.
This guide is for informational purposes only and does not constitute legal, tax, or customs advice.
Landed cost is the total price of a product once it has arrived at your destination. It includes the product cost, shipping, insurance, duties, taxes, and all other fees associated with getting the product from the factory to your door.
Reference images from industry training materials; actual fees vary. Source: Publicly circulated training charts.
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→ Calculate your landed cost in 30 secondsIncoterms define who pays for what and who is responsible for the goods at each stage of shipping. Understanding these terms helps you know what's included in a quote and what additional costs you might face.
Version note: All definitions refer to Incoterms® 2020 unless otherwise specified.
Seller makes goods available at their premises
How it affects quotes: EXW quotes show only factory price. You must add all shipping, duties, and fees to get landed cost.
Note: EXW gives buyers maximum logistics control, but also requires handling origin operations and export process details.
👉 Not sure which term your supplier is actually quoting? Use the calculator to break it down automatically.
Seller delivers goods to port, loaded on vessel
How it affects quotes: FOB includes origin costs. Add freight, insurance, duties, and destination fees to get landed cost.
Note: FOB is designed for sea freight. For air shipments, FCA is typically used.
⚠️ Critical Detail: Risk transfers when goods are loaded onto the vessel at the port of shipment (i.e., once the goods are loaded on board the vessel). This is the core principle of FOB and CIF. Once loaded, any damage or loss becomes the buyer's responsibility, even if the goods haven't left the port yet.
👉 Not sure which term your supplier is actually quoting? Use the calculator to break it down automatically.
Seller pays freight and insurance to destination port
How it affects quotes: CIF includes freight and insurance. Add duties, taxes, and destination fees to get landed cost.
⚠️ Insurance Details: The insurance provided under CIF is minimum coverage only (typically Institute Cargo Clauses C or similar). This covers basic risks but may not be sufficient for high-value goods. Buyers often need to purchase additional insurance coverage based on their cargo value and risk tolerance.
Note: CIF is designed for sea freight. For air shipments, CIP is typically used.
👉 Not sure which term your supplier is actually quoting? Use the calculator to break it down automatically.
Seller delivers to destination, all costs included
How it affects quotes: DDP is generally all-inclusive. The quoted price is usually your landed cost (but verify what's included).
Nuance: In some countries, the buyer may still need to act as importer of record or provide customs documentation.
⚠️ Important Reminder: Under DDP, the seller handles all paperwork and customs clearance. While this provides convenience, especially for buyers unfamiliar with destination country customs rules, it also means you have less control over the logistics process. Ensure you trust your supplier to handle customs correctly, as mistakes can delay delivery or result in penalties.
⚠️ High-Risk Pattern to Watch: If a DDP seller under-declares value (for example, declaring a much lower invoice value than your actual payment) or uses incorrect HS codes, customs can treat this as false declaration. If you confirm mismatched documents, liability can shift to you (fines, penalties, delays, or seizure).
Note: DDP can simplify operations, but you should verify declaration accuracy and importer-of-record responsibilities in writing.
👉 Not sure which term your supplier is actually quoting? Use the calculator to break it down automatically.
In the calculator, warning cards highlight customs/compliance risks when specific input patterns appear. Treat warnings as action prompts, not legal advice.
Triggered when seller controls customs declaration (commonly DDP or similar arrangements). Verify invoice value, HS code, and importer-of-record setup before release.
Very low per-unit freight can indicate under-declaration or non-compliant routing. Request a line-by-line freight + customs basis.
Do not confirm customs paperwork unless declared value, product description, and HS code match the real transaction.
⚠️ These risks are automatically flagged in the calculator based on your inputs.
→ Try it with your current supplier quoteThese fees are real and common, but they vary too much between forwarders and shipment types. We list them so first-time importers can budget and ask the right questions.
Important Note: These ranges are experience-based estimates. Actual amounts vary significantly based on origin/destination ports, forwarder company, shipment volume, season, and market conditions. The value of this list is to help you understand what fees to budget for and what questions to ask when getting quotes from forwarders.
港杂费
Port handling and terminal charges
报关费
Fee for filing customs declaration
文件费
Documentation and paperwork processing
操作费
Warehouse and handling operations
入仓费
Fee for receiving goods at warehouse
拖车费
Trucking from port to warehouse
保险费
Optional cargo insurance coverage
Note: Insurance is typically calculated on 110% of CIF value (goods + freight + insurance). The rate also depends on shipping route, cargo type, and risk factors. Always confirm the insured value and coverage level.
滞箱费 / 滞港费
Late fees for delayed container return or port storage
目的港费用
Fees charged at destination port
清关费
Customs clearance at destination
末端派送
Final delivery to destination address
💡 These fees are often hidden inside "all-in" quotes. The calculator helps you separate and estimate them.
→ Break down your current quote nowSupplier quote
What buyer still pays
👉 Real landed cost: $7,000 total ($7/unit)
Common terms you'll encounter when importing from China. Each term includes a definition, why it matters, and what to ask.
Definition: Minimum Order Quantity — lowest units a factory will produce/sell per order.
Why it matters: Factories set MOQs to make production runs economical. Ordering below MOQ may result in higher per-unit prices or order rejection.
What to ask: "What is your MOQ for this product? Can you offer a lower MOQ for a higher price?"
Definition: OEM (Original Equipment Manufacturer) = you provide design, they manufacture. ODM (Original Design Manufacturer) = they provide design and manufacturing.
Why it matters: Determines who owns the design and intellectual property. ODM products may be sold to multiple buyers.
What to ask: "Is this OEM or ODM? Will you sell this design to other customers?"
Definition: Harmonized System Code — international product classification used for customs and duty calculation.
Why it matters: HS code determines duty rate. Wrong code = wrong duty rate = customs delays or penalties. This is the core of import compliance.
What to ask: "What HS code will be used for customs declaration? Is this confirmed or estimated? Can you verify this with a customs broker?"
Definition: Value-Added Tax — consumption tax applied by destination country on imports (EU/UK) or sales (some countries).
Why it matters: VAT is typically calculated on the import value (goods + freight + duty), though the exact base varies by country. Rates vary: 0% (US federal), 7-21% (EU), 10% (AU/JP). The explanation of VAT handling across different countries (US, EU, Australia) is accurate.
What to ask: "What VAT rate applies? Is VAT included in the quote or separate? How is VAT calculated in my destination country?"
Definition: Import duty — tax levied by destination country on imported goods, based on HS code and origin country.
Why it matters: Duty rates vary by product (0-20% typical). Free trade agreements can reduce or eliminate duties.
What to ask: "What is the confirmed duty rate? Are there any free trade agreement benefits?"
Definition: LCL (Less than Container Load) = shared container. FCL (Full Container Load) = dedicated container.
Why it matters: LCL is cost-effective for small volumes but slower. FCL is faster and cheaper per unit for large volumes.
What to ask: "Is this LCL or FCL? What is the minimum volume for FCL pricing?"
Definition: Cubic Meter — unit of volume used for sea freight pricing (LCL).
Why it matters: LCL freight is charged per CBM. Calculate: (Length × Width × Height in meters).
What to ask: "What is the CBM calculation? Is there a minimum CBM charge?"
Definition: Weight used for freight pricing — actual weight or volumetric weight, whichever is higher.
Why it matters: Light but bulky items pay by volume. Heavy but compact items pay by weight. Carrier charges the higher amount. This "whichever is higher" rule is the standard for international air freight and express shipping.
What to ask: "Is shipping quoted by gross weight or volumetric weight? What divisor is used (5000 or 6000)?"
Definition: Demurrage = port storage fees. Detention = container holding fees beyond free time.
Why it matters: Late pickup or container return results in daily fees ($50-200/day). Plan logistics to avoid these charges. Note: "Free time" is not fixed—it's set by shipping lines or terminals and can change based on market conditions (peak seasons may have shorter free time).
What to ask: "What is the current free time limit? What are the demurrage/detention rates? Could free time change during peak season?"
Definition: Licensed professional who handles customs clearance and import documentation on your behalf.
Why it matters: Required for most imports. They file paperwork, pay duties, and ensure compliance. Fees: $75-200 typically.
What to ask: "Is customs brokerage included? What documentation do you need from me?"
Definition: Freight forwarder — company that arranges shipping, documentation, and logistics for international shipments.
Why it matters: Forwarders coordinate carriers, handle paperwork, and manage the shipping process. They charge various fees (see Common Fees above).
What to ask: "What fees are included in your quote? What additional fees might apply?"
This guide provides a reliable reference framework to help you understand cost structures and industry terminology, enabling more professional and effective communication with suppliers and forwarders.
💡 Remember: This guide is designed for education and framework-building. In practice, always confirm specific rates, fees, and terms directly with your forwarder, customs broker, and supplier before committing to orders.
Use our calculator to get a transparent estimate of all costs from factory to your door.
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