The cost to import textiles from India is the supplier's price plus everything needed to get the goods into your warehouse: freight, insurance, duty, taxes, port and clearance charges, inland transport, and testing and inspection. The total is the textile landed cost. It is usually well above the FOB figure, and buyers who compare only FOB prices are surprised by it.
We give no amounts. Every line below depends on the route, the product and the month, and a real figure comes from quotes you collect for your own order.
Which lines make up landed cost?
Searching for the textile landed cost from India usually turns up percentages that do not fit your product. Build a table with one row for each of these, and fill it with real quotes:
- Product cost: the FOB price from the supplier, including packing and export clearance.
- Sea or air freight from the Indian port to your destination port, plus fuel and other surcharges.
- Marine cargo insurance, usually a percentage of the insured value.
- Import duty, calculated on the customs value of the goods.
- Value-added or sales tax, where it applies and is not recoverable.
- Port, terminal handling, customs broker and documentation charges at destination.
- Inland transport to your warehouse.
- Testing, inspection and certification costs.
Why the Incoterm changes the arithmetic
The supplier's quote covers different lines depending on the Incoterm. FOB stops at the Indian port. CIF adds freight and insurance to the destination port. DAP adds delivery to your address, but not import duty. Read FOB, CIF or DAP before you compare quotes, and convert them all to the same basis.
A CIF quote can look expensive next to an FOB one until you add your own freight and insurance to the FOB figure.
How is duty worked out?
Duty depends on the classification of the goods, the country of origin and the trade agreement that applies, and it is charged on the customs value. It differs between the US, UK and EU, and it changes. The basics are in how Indian textile import duty is set in the US, UK and EU.
Ask your customs broker to confirm the classification and the current rate for your product before you quote your own customer. The classification of a garment depends on the fibre, the knit or woven construction and the type of garment, so a small spec change can change the duty.
Costs buyers forget
Charges at destination are often left out. They include terminal handling, demurrage if the container is held, and the broker's fee. A delay at the port can add storage charges quickly.
Quality failures also have a cost. A lot that fails on arrival means a claim, a delay or a discount. The cost of testing and inspection before shipment is usually smaller than the cost of one failed container. See what to check on arrival.
Finally, add the cost of money. If you pay in advance and the goods take weeks to arrive, that is capital tied up.
Next step
A reliable landed-cost figure needs real quotes for freight, duty and clearance on your route. We help you collect them and compare suppliers on the same basis. Book a free sourcing review with your product and destination.