The Price on the Invoice Is Not the Cost
By the time goods reach your warehouse, additional costs have been added: freight, insurance, customs duties, processing fees, broker fees, inland transportation, and more. Many importers either do not calculate landed cost or calculate it incorrectly.
Components of Landed Cost
Product cost (varies by Incoterms), international freight, customs duties (including Section 301, 232, IEEPA), fees and charges (MPF, HMF, broker fees), and domestic logistics.
Why Most Calculations Are Wrong
Organizational silos, variable and unpredictable costs, and currency fluctuations all conspire against accuracy. The difference between accurate and estimated landed cost can easily reach 5 to 15 percent of product cost.
Building a Reliable Model
Map every cost element. Assign costs at the SKU level. Integrate actual data rather than estimates. Build scenario capabilities to answer “what if” questions.
Ready to Take Action?
Peacock Tariff Consulting helps importers build landed cost models that capture every dollar. Contact us today.
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