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

Landed cost of spices from India: what to budget for

The cost to import spices from India is more than the supplier's price. This page lists every layer of landed cost, from FOB to your warehouse, without figures.

· 3 min read · Creston & Co

The landed cost of spices from India is the supplier's price plus everything it takes to get the goods into your warehouse, cleared and ready to sell. A container price for spices or a bulk spice price from India is only the first layer. This page lists the others so you can budget for the whole chain; it gives no figures, because every layer depends on your product, route and terms.

Ask for a quote on a defined basis, then add the layers that basis leaves out.

What is included in the supplier's price?

The first layer is the product itself, to your specification. It covers raw material, cleaning, grading, any treatment, packing and testing at the plant. What happens after that depends on the trade term. Under FOB the supplier delivers the goods on board at the Indian port; under CIF it also pays freight and insurance to your port. FOB, CIF or DAP sets out the difference.

What costs come before the ship?

Several items sit between the plant and the vessel, and some may be charged separately:

  • Third-party testing and inspection, including loading supervision.
  • Fumigation or phytosanitary certification where the destination requires it.
  • Export documents and certificates, such as origin and health certificates.
  • Trucking to the port and port handling charges.
  • Container hire, if it is not included in the supplier's price.

What costs come on the voyage?

Sea freight depends on the route, the container size, the season and the shipping line, and it changes often. Typical freight costs for a 20 ft container from India explains what drives it. Marine cargo insurance is a separate line, usually a small percentage of the cargo value, and you should insure even if the term does not require it.

What costs come at your end?

Arrival costs are the ones buyers most often forget:

  • Customs duty and import VAT or sales tax, which depend on your country and the commodity code. Check them with your customs broker or the tariff database of your authority.
  • Port and terminal charges, container detention and demurrage if clearance is slow.
  • Customs broker fees and any inspection or sampling by food authorities.
  • Haulage to your warehouse and unloading.
  • Currency conversion and the cost of the payment method.

How do you build a landed-cost sheet?

Make one row for each layer and fill it from written quotes, not estimates. Add a margin for delays and currency. Rerun the sheet when a layer changes. The document pack your broker will ask for shows what to prepare so clearance does not add cost.

A real landed-cost figure for your product comes from a sourcing review, because it depends on your specification and route. See also how to import spices from India, step by step.

Where do budgets most often go wrong?

The two usual gaps are delay and rejection. A container held at the port for lack of one document attracts storage and container charges every day. A lot that fails a border test can mean re-export, destruction or re-testing. Neither is in the supplier's price, so set aside a contingency and prepare the documents early.

Next step

To get a landed-cost sheet built from real quotes, book a free sourcing review. We agree one written fee in advance, so there are no surprise charges from us.

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