How to calculate the Landed Price of imported goods from China, multiple products with differnt purchase prices - The Book-keepers Forum (UK)

Darren Lawler · Newbie

How to calculate the Landed Price of imported goods from China, multiple products with differnt purchase prices

Zoorbing · Member

You need to apply relevant rules of management accounting to your calculations. Shipping costs can very per widget (weight/volume) as can duty (tariffs ); shipment methods (CIF etc); discounts and lots of other things. You are looking too simplistically. Plus not supplying anywhere near enough information. Dont know what your role is in the business, but perhaps you should have a word with your supervisor or at the very least the external accountant.

-- Edited by Zoorbing on Wednesday 22nd of September 2021 06:11:44 PM

Darren Lawler · Newbie

Hello Zoorbing, sorry for the vagueness but I thin I have worked it out. I think you get a proforma invoice from china for the goods whatever they are, they total goods were £119181.89
Freight, Duty & VAT were £38262.59
So total cost was £157,444.48

However I have two different products on order one has a Purchase price of £604.00 and the other £729.00

In order for us to find the correct "Landed Price" for both products we simply total up the none product costs which are £38262.59 and divide this against the original total of the proforma £119181.89 and we get our Daily Duty rate.

So £38262.59 / £119181.89 = £0.32

therefore the new Landed Price for both products are now £797.91 and £963.04

Hope this helps.

Zoorbing · Member

Only if they attract the same duty and you ignore all the other factors/my comments. Duty is not a daily rate.
vat is not a cost. Havent checked your calculations, CBA.

-- Edited by Zoorbing on Thursday 23rd of September 2021 03:19:49 PM