Which item is not included in landed costs?

Which item is not included in landed costs?

• A. Packaging
• B. Original price
• C. Transportation fees
• D. Insurance

Answer: (A)

Landed cost is the total expense to bring goods to your facility and have them ready to use or sell. It includes the purchase price, international transport, insurance, and import charges like duties, taxes, and customs clearance. Packaging isn’t counted as a separate landed-cost item because it’s typically part of the supplier’s price or the production cost, not an additional import-related charge. So, the packaging cost isn’t added as its own line in the landed-cost calculation. For example, if the goods cost $1,000, freight is $200, insurance $20, and duties $50, the landed cost is $1,270, with packaging not added separately.

Landed cost is the total expense to bring goods to your facility and have them ready to use or sell. It includes the purchase price, international transport, insurance, and import charges like duties, taxes, and customs clearance. Packaging isn’t counted as a separate landed-cost item because it’s typically part of the supplier’s price or the production cost, not an additional import-related charge. So, the packaging cost isn’t added as its own line in the landed-cost calculation. For example, if the goods cost $1,000, freight is $200, insurance $20, and duties $50, the landed cost is $1,270, with packaging not added separately.