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.
How should a business apply Total Landed Cost?
Calculate by route, shipment profile, Incoterm, classification, origin and currency. Allocate shared shipment charges using a documented basis.
What records support Total Landed Cost?
Retain supplier price, freight quotation, customs inputs, exchange rate, fees, allocation and actual-versus-estimate review.
Total Landed Cost: control and evidence
| 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. |
What should buyers verify about Total Landed Cost?
A landed-cost estimate ages quickly when freight, duty or FX changes. Date the model and refresh it before award or reorder.
