How to Calculate the True Landed Cost of Imports in Nigeria

For importers, the supplier’s FOB price is only the starting point. Add ocean freight and marine insurance to arrive at the CIF value. At the port, costs may include import duty based on the HS code, VAT calculated on the applicable assessable value, CISS, ETLS, the Nigeria Customs Service surcharge, terminal charges, clearing and inland haulage. Delayed documentation can also lead to demurrage. Two common pricing mistakes are using CIF as the final product cost and calculating VAT on the wrong value. Your selling price should be based on the full landed cost to your warehouse or gate, not the FOB price. Do you prepare a complete landed-cost sheet before placing an order? Would a simple template help?

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