Landed Costing As Customs Brokers, the Value Added Services that we are being asked to provide is increasing every year. As Customs Brokers, the Value Added Services that we are being asked to provide is increasing every year. Landed Cost Analysis or Landed Cost Reports is one of these areas, where special attention is required. Landed Cost Analysis or Landed Cost Reports is one of these areas, where special attention is required.

Landed Cost The definition of Customs Value is defined in the Act, and calculated by the compile system in most instances. The definition of Customs Value is defined in the Act, and calculated by the compile system in most instances. Landed Costs analysis however requires further calculations that run parallel to and join the customs value calculations of goods. Landed Costs analysis however requires further calculations that run parallel to and join the customs value calculations of goods. Landed Cost of goods involves the calculation of all costs and expenses in arriving at a unit value of goods generally at the importers warehouse. Landed Cost of goods involves the calculation of all costs and expenses in arriving at a unit value of goods generally at the importers warehouse.

Landed Cost When considering the requirements of a landed costing, the inclusion or exclusion of GST must be established. Where the importer is entitled to an input tax credit for the GST, it will be excluded from the unit Landed Cost. When considering the requirements of a landed costing, the inclusion or exclusion of GST must be established. Where the importer is entitled to an input tax credit for the GST, it will be excluded from the unit Landed Cost. Where the importer is not entitled to an input tax credit, the GST must be included in the calculation of the landed cost, as it forms part of the cost of goods. Where the importer is not entitled to an input tax credit, the GST must be included in the calculation of the landed cost, as it forms part of the cost of goods. As a separate exercise, the VOTI must be calculated, and used to establish the GST of the line unit price, where the importer is not entitled to an Input Tax Credit. As a separate exercise, the VOTI must be calculated, and used to establish the GST of the line unit price, where the importer is not entitled to an Input Tax Credit. Generally the compile entry factor is used as the basis of customs value within the landed cost report. Generally the compile entry factor is used as the basis of customs value within the landed cost report. The Duty is calculated on the Customs Value on a per item basis, and then the duty figure is included in the Landing Charges for that particular line. The Duty is calculated on the Customs Value on a per item basis, and then the duty figure is included in the Landing Charges for that particular line.

Landed Cost All charges that are excluded from Customs Value and are part of the cost of landing the goods must be included in the landed cost unit price. All charges that are excluded from Customs Value and are part of the cost of landing the goods must be included in the landed cost unit price. Be aware of any discounts or commissions that are not allowable or do not form part of the Customs Value for landed cost purposes. Be aware of any discounts or commissions that are not allowable or do not form part of the Customs Value for landed cost purposes. In generating the Landed Cost, the actual Customs Duty must be included, as a figure based on the Customs Value. In generating the Landed Cost, the actual Customs Duty must be included, as a figure based on the Customs Value.

Landed Cost Some importers may require the apportionment of freight or other landing charges other than by value. E.g. Cubic area or weight of individual item. This requires that each product have their dimensions or weight available on a per unit basis. Some importers may require the apportionment of freight or other landing charges other than by value. E.g. Cubic area or weight of individual item. This requires that each product have their dimensions or weight available on a per unit basis. The rate of exchange to be used for the calculation of the costs of goods may be based on a Forward Exchange Contract, or other financial or commercial rate available to the importer. The rate of exchange to be used for the calculation of the costs of goods may be based on a Forward Exchange Contract, or other financial or commercial rate available to the importer.

Summary Calculation of a Landed Cost is a commercial exercise, and therefore the basis of calculation of CV must only be used to establish the Customs Duty payable per item. Calculation of a Landed Cost is a commercial exercise, and therefore the basis of calculation of CV must only be used to establish the Customs Duty payable per item. Apportionment of freight charges and other landing costs can be conducted by different methods, not just by reference to the value. Apportionment of freight charges and other landing costs can be conducted by different methods, not just by reference to the value. The Landed cost unit may vary between commodities due to the nature of the goods. The Landed cost unit may vary between commodities due to the nature of the goods. All landed costs should include a variance mechanism to ensure that the input figures have been apportioned correctly. All landed costs should include a variance mechanism to ensure that the input figures have been apportioned correctly.