Total landed cost is the complete cost of bringing imported goods to the stated destination and condition. It normally combines product value with freight, insurance, duties, taxes and destination charges, subject to the chosen boundary.
The operating decision
Calculate by route, shipment profile, Incoterm, classification, origin and currency. Allocate shared shipment charges using a documented basis.
What to keep
Retain supplier price, freight quotation, customs inputs, exchange rate, fees, allocation and actual-versus-estimate review.
| Area | What the record should show |
|---|---|
| Control | Calculate by route, shipment profile, Incoterm, classification, origin and currency. Allocate shared shipment charges using a documented basis. |
| Evidence | Retain supplier price, freight quotation, customs inputs, exchange rate, fees, allocation and actual-versus-estimate review. |
| Tradeoff | A landed-cost estimate ages quickly when freight, duty or FX changes. Date the model and refresh it before award or reorder. |
A practical limitation
A landed-cost estimate ages quickly when freight, duty or FX changes. Date the model and refresh it before award or reorder.
Related definitions: landed cost, freight quote, currency adjustment clause.
