- 8 min read
- Intermediate
- Updated: Oct 2, 2026
Landed cost of importing from China: step-by-step guide
Freight, insurance, customs duty, VAT and local costs: work out what the goods really cost once they reach your warehouse.
The price a factory quotes is only part of what the goods cost once they reach your warehouse. Freight, insurance, taxes, customs and local costs add up, and the gap can be large. Below is the landed cost calculation step by step.
What makes up the cost
| Item | What it includes |
|---|---|
| Product price | Unit price × quantity; plus tooling, printing and packaging extras if any |
| Freight | Transport from the Chinese origin to a Turkish port or airport (sea, air or road) |
| Insurance | Cargo insurance, which is often forgotten |
| Customs duty | Rate depends on the tariff code (GTİP) and origin; the base is the customs value |
| Additional taxes | Depending on product and origin, items such as additional customs duty may apply |
| VAT | Paid on import, calculated on a base that includes customs duty (rate varies by product) |
| Broker and port costs | Broker fee, terminal handling, storage, containers and any demurrage |
| Domestic transport | From port or customs area to your warehouse |
| Compliance costs | Test reports, inspections and labelling specific to the product |
| Finance and FX | Payment fees, exchange-rate changes and the cost of stock waiting to be sold |
Which delivery term is the price based on?
You can only compare two quotes for the same product if the delivery term (Incoterms) is the same. The most common:
- EXW: goods are handed over at the factory gate; transport inside China, export formalities and everything after are yours.
- FOB: the seller is responsible until the goods are loaded on the ship at the Chinese port; freight and everything after are yours.
- CIF: the price includes freight and insurance up to the Turkish port.
The customs value for imports is generally based on the CIF value. If you got an FOB quote, you cannot find the tax base without adding freight and insurance.
Step-by-step calculation
- Multiply the unit price by the quantity: the product cost.
- Add freight and insurance: the CIF value (for an FOB quote).
- Find the product’s tariff code (GTİP); duty and any additional taxes depend on it.
- Calculate customs duty on the CIF value.
- Find the VAT base: CIF value + customs duty + any other taxes and charges. Calculate VAT on that amount.
- Add broker, port, storage and domestic transport.
- Divide the total by the quantity: the unit landed cost.
A simple example (hypothetical figures)
The table only shows the logic. The rates are not for a real product; recalculate with current rates for your own product’s tariff code.
| Line | Amount (USD) |
|---|---|
| Product price (FOB) | 10,000 |
| Freight + insurance | 1,300 |
| CIF value | 11,300 |
| Customs duty (example 10%) | 1,130 |
| VAT base (11,300 + 1,130) | 12,430 |
| VAT (example 20%) | 2,486 |
| Broker, port, domestic transport (estimate) | 900 |
VAT may later be recoverable depending on your situation, so treat it separately when you plan cash flow and pricing. Notice how far the unit cost rises once taxes and costs are added to a 10,000 USD product price.
Costs people miss
- Demurrage and storage: if documents are incomplete and the container waits at port, daily charges apply.
- Samples and tooling: payments made before mass production should be spread into the unit cost.
- Volumetric weight: air freight is charged on the greater of weight and volume.
- Currency risk: the dollar rate can move during production and shipping.
- Returns and loss: if you sell on marketplaces, include commission, returns and damage in the price.
- Changes in tax and compliance rules: additional taxes and inspection rules can change between order and arrival.
How Ahenza Global helps
For marketplace sellers we build freight, tax and commission into total cost before the order; see e-commerce product sourcing, and customs clearance and logistics for the customs side. To verify a supplier first, read our factory verification checklist.
Frequently asked questions
How is customs duty calculated?
By the product’s tariff code (GTİP), its origin and its customs value. Two products in the same category can fall under different codes, so confirm the rate with your broker before ordering instead of guessing.
Should I choose FOB or CIF?
Either can work. With FOB you manage freight yourself and can compare more transparently; with CIF the seller arranges it, but freight may be buried in the price. What matters is converting quotes to the same delivery term before comparing.
Air freight or sea freight?
Sea usually lowers unit cost for bulky, non-urgent loads; air suits small, valuable or urgent loads. The choice depends on product value, volume and your season calendar.
Who does the cost calculation?
You can do it yourself, but the tariff code and tax rates should be confirmed by a customs broker. Running the numbers before ordering is far cheaper than a surprise afterwards.
Written by: the Ahenza Global team, an Antalya-based import and export company · Published: 1 October 2026
Related service: Customs clearance and logistics · Current duty rates: Turkish Ministry of Trade tariff search (TARA, in Turkish)
Note: This guide is general information. Regulations, tax rates and procedures change; check current texts and your customs broker before importing.
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