Pharma Import Shipping & Landed Cost Calculator
Estimate what a pharmaceutical shipment really costs when it reaches your warehouse: freight, insurance, customs duty, VAT or GST, and the landed cost per unit. Works for air freight, express courier and sea freight.
The form opens with example figures. Replace them with your supplier's price, your forwarder's freight quote and your country's duty and tax rates. Nothing you enter is stored or sent anywhere.
How landed cost is calculated
- Goods value on your supplier's invoice, on the Incoterm agreed.
- Origin charges if you buy EXW or FCA: pickup, export clearance and handling at origin.
- Freight to your country, unless the supplier's price already includes it (CFR, CIF, CPT, CIP, DAP, DDP).
- Insurance, usually a small percentage of goods plus freight, often on 110% of the value.
- Customs value: goods + freight + insurance (CIF) in most countries, or the FOB value in some.
- Duty and levies as a percentage of the customs value.
- VAT or GST, normally on the customs value plus duty and levies.
- Destination charges: customs brokerage, terminal handling, storage and delivery, plus any permits or testing.
Chargeable weight
Carriers charge on whichever is greater: the actual weight or the space the shipment takes up.
- Air freight: 1 cubic metre counts as 167 kg (dimensions in cm ÷ 6,000).
- Express courier: 1 cubic metre counts as 200 kg (dimensions in cm ÷ 5,000).
- Sea freight LCL: charged per "weight or measure", where 1 cubic metre or 1,000 kg is one freight unit, whichever is greater.
- Sea freight FCL: a fixed rate per 20-foot or 40-foot container.
Light, bulky goods such as tablets in cartons or cold chain boxes often pay on volume rather than weight, so packing efficiently can cut freight noticeably.
Incoterms: who pays what
| Term | Seller pays to | Buyer still pays |
|---|---|---|
| EXW | Goods ready at seller's premises | Origin charges, freight, insurance, import costs |
| FCA / FOB | Handed to carrier or loaded on vessel | Freight, insurance, import costs |
| CFR / CPT | Freight to destination port or place | Insurance, import costs |
| CIF / CIP | Freight and insurance to destination | Import costs |
| DAP | Delivery to named place, not cleared | Duty, taxes, clearance |
| DDP | Delivery, cleared and duty paid | Usually nothing further |
Duties and taxes on medicines
Finished medicines are usually classified in chapter 30 of the Harmonized System, and APIs in chapters 28 and 29. Many countries apply zero or low customs duty to medicines, and some apply reduced VAT or GST, but clearance fees, permits and laboratory testing can add significant cost. Always confirm the tariff line and any exemptions with your customs broker before you price a tender.
Cold chain shipments
Vaccines, insulin, biologics and many injectables travel at 2–8 °C or frozen. Validated passive packaging or active containers, temperature loggers and priority handling add to freight. Ask your forwarder to quote these separately and enter them in the cold chain field.
Frequently asked questions
What is landed cost?
The total cost of getting goods to your warehouse: the price of the goods plus freight, insurance, origin and destination charges, customs duty and import taxes such as VAT or GST.
Is customs duty charged on the CIF or FOB value?
Most countries charge duty on the CIF value. Some, including the United States, Canada and Australia, use the FOB or transaction value. Choose the basis in section 3.
Should I include VAT or GST in landed cost?
If your company is registered and can reclaim import VAT or GST, it is not a real cost, so tick the recovery box. Hospitals and many non-registered buyers cannot reclaim it.
Do medicines pay import duty?
It depends on the country and product. Many markets apply zero or reduced duty to medicines, but VAT or GST, fees and clearance charges usually still apply.
Related: pharma tender calendar · drug shortage radar · smart drug and API sourcing · verify a supplier
This calculator gives estimates for planning only. It is not customs, tax or legal advice.
