Have you ever considered the importance of a landed cost calculator when determining how much it costs to send a package to its rightful owner? Putting a shipping sticker on a box or having stock on hand isn’t enough. This cost is more complicated than just the cost of products and storage.
In fact, there is a complex web of possible fees and charges that come into play as your goods move from your sellers to your customers’ homes. We call the total amount of money you spend on your supply chain the “landing cost.” A landing cost calculator is one of the best tools you can use to get a full picture of this financial situation.
This blog outshines the methodology of how the landed cost calculator works and helps in the CDS (Customs Declaration Service). To illustrate its processing, we further investigate the iCalculator’s core purposes, advantages, and a working length scenario-based example.
Landed cost is the total cost of getting a product from its manufacturing stage to its dispatch or destination point. Shipping and freight costs, taxes, customs duties, insurance premiums, and handling fees are all included in the landed cost.
A landed cost calculator is used to evaluate the landed cost of a product. It takes data on taxes, fees, etc., as input information, processes it, and generates accurate cost values. It is an instant source of solution for UK merchants.
The elements of the overall landed cost calculator are derived directly from the landed cost components. This calculator delivers comprehensive outcomes by factoring in the following key elements:
iCustoms is a leading customs management software fully integrated with AI technology. It provides advanced customs declaration services with many features, such as product classification, document management, an iCalculator and smart document automation.
Here, we are specifically talking about iCustom’s duty and VAT calculator. It is a powerful tool for UK supply chain businesses. Because it speeds up the tax evaluation process, makes it more accurate, and gives sellers and brokers more confidence in trading.
iCustoms landed cost definition is similar to the standard meaning of landed price. But iCalculator calculates all levies, duties, and charges for a trader’s consignment to avoid any sudden additional costs. It helps to improve transparency, reliability, and cost efficiency by providing accurate and precise evaluations.
iCustoms duty and VAT calculator has the following characteristics:
iCalculator is a complete package and covers all aspects of estimating the correct tax values. The process starts with getting the exact commodity code and description with respect to products.
iCustoms product classification tool is integrated with HMRC and provides an accurate harmonised code when the goods are described. It fetches the correct code with complete details in a matter of seconds.
After getting the commodity code, finding the country where the goods are imported is important. However, the trader also needs the exact duty rate for the country. The iCustoms tariff database gives merchants and customs brokers country-specific VAT percentages to estimate landed costs.
In order to calculate the duties, iCustoms uses its built-in formulas from HMRC to calculate the duties and other relevant taxes. It uses predefined mathematical formulas or algorithms in systems. This formula calculates customs duty or tax for an imported or exported item.
Finally, the iCalculator provides the landing estimates for imported cargo with complete details. It differs from other cost calculators because its fundamental structure is subject to the HMRC Tariff API. Hence, the iCustoms’ landing cost calculator is an AI-driven calculator that improves cost transparency.
This clarity helps you budget and prevent surprises. It also reduces product returns by reducing errors and inconsistencies, ensuring consumers receive predictable shipments. This improves client happiness, loyalty, and brand value.
This is the user interface of the iCalculator for calculating the landing fee after filling out the following details in the relevant sections. Before demonstration, let’s understand the things that are part of this calculator;
| Required Details | Description |
|---|---|
| Goods dispatch country | The country from which goods are arriving |
| Goods destination country | Country where goods are delivered, For now, the destination country is the UK |
| Currency | The type of currency, most commonly it is in GBP |
| Total invoiced price | Total amount of invoice of goods |
| Transportation cost | Shipment costs either by air, land, or water |
| Insurance cost | The fees for the protection of the consignment |
| Other additional costs | Other relevant fees paid in form of duties or taxes |
| FOB | FOB stands for “Free on board”. It includes the cost of goods, loading costs, arrival at the port, export duties and taxes, port handling charges, overseas freight, and export customs clearance cost. |
| CIF | CIF stands for “Cost, insurance, and freight”. The seller pays for shipping, insures the products, and arranges and pays for their delivery to the agreed-upon port. Commonly, CIF covers the FOB cost. |
| Product description | Enter the main keyword of the product and select the relevant description that matches the product. |
Suppose a UK merchant wants to import vanity, trunk, and other types of bags from the USA. He wants to calculate the total landed cost of the products. Here is the list of prices he paid in USD:
Total invoice Price = £10,000
Transport cost = £2000
Insurance cost = £500
Other additional costs = £750
Currency exchange
In order to calculate the total landed cost through iCalculator, here is the output of the results obtained in the image below:
Duty = 2%
VAT rate = 20%
Duty payable = £250
VAT payable = £2550
Total landed cost = £16,050
rate (USD to GBP) = 0.79 (1USD = £0.79)
With the iCustoms Landed Cost Calculator, you can improve the efficiency of your imports and exports. This tool simplifies complicated calculations for a clear and cost-effective supply chain. Here are the most common benefits of using iCalculator:
It is understandable for traders that UK customs trade is becoming more complicated. Therefore, they must go ahead, and the iCustoms Landed Cost Calculator is a perfect solution that transforms your customs management experience. The AI-powered iCustoms Landed Cost Calculator simplifies tax assessment.
This technology improves accuracy, transparency, dependability, and cost-effectiveness by effortlessly linking with HMRC and providing real-time harmonised code data. Reduces mistakes and surprise costs, improving customer happiness with accurate results.
So, why wait? Switch to iCustoms for more accurate and reliable CDS software, as iCustoms is the future of UK customs commerce.
