📚 China import course

One of the most common mistakes new importers make is counting only the price of the goods and ignoring the other costs, which can double the price.

The components of the full import cost

1. Price of the goods (FOB or EXW)
The price the supplier quotes. Make sure you know the delivery terms (Incoterms).

2. International freight
- Sea freight FCL (full container): rates vary widely with global market conditions and timing — the figures in this lesson are teaching examples only and do not reflect today's rates
- Sea freight LCL (shared container, per cubic metre): USD 80–150/CBM
- Air freight: USD 3–8/kg depending on weight and destination

3. Cargo insurance
Usually 0.3–0.5% of the value of the goods. Never skip it.

4. Import duty
Depends on your country and the type of goods. In Saudi Arabia most goods are 5–15%. Check your country's customs tariff.

5. Value-added tax (VAT)
In most Arab countries: 5–15% of the value of the goods + freight.

6. Customs clearance fees
A clearance agent usually charges USD 200–500 per shipment.

7. Port and handling charges
USD 200–500 depending on the port and container.

8. Inland transport
From the port to your warehouse.

Worked example:
A product with an FOB price of USD 5,000:
- Sea freight: [varies with timing and route — teaching example]
- Insurance: USD 20
- Customs 10%: USD 650
- VAT 15%: USD 975
- Clearance + port: USD 400
- Inland transport: USD 200
Total cost: USD 8,745 (175% of the price of the goods alone!)

Summary: always calculate the full unit cost = (sum of all costs) ÷ number of pieces.