Your eyes and hands in India · Est. 2019 · Replies within one working day

Cost to import chemicals from India: building a landed cost

The cost to import chemicals from India is the goods price plus freight, insurance, duty, taxes, handling and testing. Dangerous goods add costs that general cargo does not.

· 3 min read · Creston & Co

The cost to import chemicals from India is the landed cost: the goods price plus everything it takes to get the product to your door, including freight, insurance, duty, taxes, port and inland handling, and testing. Chemicals usually have extra lines that general cargo does not.

This article lists the line items only, with no figures. Use it to build a spreadsheet and ask your suppliers and forwarder for each line.

Line items common to most imports

  • The goods price on the agreed Incoterm, with the pack and quantity stated. See the best Incoterm for chemical imports.
  • Origin charges not in the price, such as inland transport, terminal handling and export clearance, if they are not covered by the term.
  • Ocean freight for the container or the tank, and surcharges the line applies.
  • Marine cargo insurance. See insurance for chemical shipments.
  • Customs duty and any anti-dumping duty that applies in your country. See import duties on Indian chemicals.
  • Import VAT, GST or sales tax, which you may be able to recover depending on your country.
  • Port charges, customs clearance, broker fees and inland haulage to your site.
  • Bank charges, currency conversion and the cost of money during transit.

Line items specific to chemicals

Chemicals add costs that you should check for each product:

  • Dangerous goods freight surcharges and documentation, which depend on the class and the line. See why DG freight costs more.
  • UN-approved packaging, which costs more than ordinary packaging.
  • Pre-shipment sampling, testing and inspection, including a third-party lab or loading survey.
  • Regulatory costs in your country, such as registration, notification, labelling and an authorised representative where the law requires one.
  • Storage, demurrage and detention, and tank cleaning if you use ISO tanks.
  • Losses and claims: leakage, off-spec lots and the cost of a delay.

Why the lowest goods price may not win

A low unit price can hide higher packing, freight or compliance costs, or a longer lead time that ties up cash. Another risk is a quality failure after arrival, which wipes out any saving. Read why quality drops after the first container for how that happens.

Quotes also have a shelf life. Freight, duties and exchange rates change, so rebuild the landed cost when you order, not only when you enquire.

How to build it in practice

Make one spreadsheet with the same rows for every supplier, and fill each row from a written source, such as a quote, a forwarder's offer or your customs broker's duty check. Mark which rows are estimates. Compare suppliers on landed cost per tonne of usable product, adjusted for strength or purity.

Our guide on the document pack your broker will ask for helps you avoid delays that add storage costs.

Mistakes that distort a landed cost

Common mistakes include leaving out the dangerous goods surcharge, forgetting the duty on the freight and insurance value where your country adds them to the customs value, and ignoring storage charges while you wait for clearance.

Another is using last season's freight rate. Rebuild the sheet for each order, and ask your customs broker to confirm the duty classification before you rely on the figure. See HS codes for chemicals.

Next step

We find and audit manufacturers, check samples and documents, have lots tested, and supervise loading. To build a landed cost for your product, book a free sourcing review.

More from the blog

Free · 20 minutes · No obligation

Start with a free 20-minute sourcing call.

Tell us the product, the spec and the volume. We'll tell you what it should cost from India, what to test for and where the risks are. No fee, no obligation, and you keep the notes.