Estimating landed cost for imports into Bangladesh
The building blocks of a landed-cost estimate — and which figures you must confirm with official sources.
A landed-cost estimate tells you what an imported product really costs once it is in your warehouse. It is the basis for pricing, margin and supplier comparison.
The building blocks
- Goods value in the invoice currency, converted at the rate your bank will apply.
- Freight and insurance to the port of entry, giving the CIF value.
- Assessable value — the value customs uses to calculate duties. It may differ from your invoice; your C&F agent can tell you the basis used for your goods.
- Duties and taxes — each one has a rate and a base. In Bangladesh these can include customs duty, regulatory duty, supplementary duty, VAT, advance income tax and advance tax. Which apply, and at what rate, depends on the HS code and current rules.
- Local charges — C&F agent fees, port and handling, bank or LC charges, inland transport.
Where to get the numbers
- Rates: the current customs tariff for your HS code, published by the National Board of Revenue, or confirmed by a licensed C&F agent. Rates and rules change, often with the national budget.
- HS code: confirm classification before ordering; misclassification can lead to penalties and delays.
- Exchange rate: ask your bank which rate will apply at settlement.
Cost versus cash
Some taxes paid at import may be adjustable or creditable later, depending on your business's tax position. Show them separately so you can see both the cash you need at import and the true product cost. Confirm the treatment with your accountant.
Stress-test the estimate
Check the effect of exchange-rate movement and port delays before you commit. The FX sensitivity calculator shows how cost and margin move with the rate.
This article is general guidance, not tax or customs advice.