First define the quantity, destination warehouse and services included in the quotation for the same shipment. Add the merchandise price, transport and insurance not already included, clearance, non-recoverable duties and taxes, and other costs to the warehouse. Separately list taxes and deposits that must be paid upfront but may be legally recovered, together with the expected recovery dates, to forecast cash flow. Divide the confirmed final cost by the agreed number of pieces received at the warehouse to obtain a comparable estimate per piece. Recovery eligibility, timing and the final amount payable must be checked for the actual destination, importing entity and documents; do not automatically deduct a tax simply because it appears on an invoice.
This guide helps brands and buyers budget for finished garments; it does not replace customs valuation, tax filing or accounting. The US International Trade Administration describes landed cost as the total price when goods reach the buyer, including product price, insurance, freight, duties, taxes and other fees; see its landed cost explanation. This guide sets the comparison endpoint more specifically at the buyer's warehouse and shows recoverable amounts and cash timing separately. Each company's finance team must determine inventory cost accounting under the applicable rules.
First align the endpoint and quantity
Record the product, currency, quantity, complete destination warehouse address and delivery terms, including the named place and Incoterms version. Two quotes may both say “freight included” while one ends at the destination port and the other at the warehouse; their quoted unit prices cannot be compared directly. Confirm which transport, insurance, export formalities, destination charges and unloading are covered by the seller's quote. Ask the forwarder to list remaining charges and the quote validity period. Fill the gaps to the same place, quantity and service scope and count each item only once.
The International Chamber of Commerce's Incoterms 2020 guide explains that under DAP the buyer handles import clearance and duties, and the seller is not required to unload at destination. Under DDP the seller handles import clearance, although practical obstacles may arise. This is a summary of responsibilities under those rules; it does not prove that a particular quote includes every warehouse surcharge or that any supplier can import into the destination country. Check the contract, applicable rules and local arrangements before filling in the cost sheet.
Define the piece count as well. Ordered, shipped and actually received quantities may differ. At budget stage, use the expected warehouse receipt quantity provisionally; at settlement replace it with the actual figure and record why it changed. Do not treat an expected reimbursement for unresolved damage, shortage or claims as money already received. If you need cost per saleable piece, list saleable quantity and any impairment assessment separately; do not confuse it with the number received at the warehouse.
Build a cost list without double counting
For each item, record the payee, payment date, currency, basis of the amount and whether it is already included in the quote. Mark an unquoted item “to be confirmed”, not zero. Depending on the agreed scope, the budget can include inspections needed before receipt, destination terminal handling, customs brokerage and warehouse appointments. If comparing selling expenses, costs during storage or finance costs, show them separately and use the same scope for both options.
| Item | What to check | Budget treatment |
|---|---|---|
| Merchandise and included services | Quantity, unit price, currency, delivery place and inclusions | Calculate from the order; do not add included transport or services again |
| Transport and insurance | Each route segment, carrier, insurance scope, endpoint and quote validity | Add only amounts paid separately by the buyer within the warehouse-delivery scope |
| Import process | Classification, origin, declared value, duty, import taxes and broker fees | Confirm rules, tax bases and quotations with the customs broker; do not assume a rate |
| Destination and warehouse | Terminal or airport charges, delivery, appointment, unloading and documentation fees | Verify contractual responsibility, charging conditions and inclusions |
| Recoverable amounts | Eligibility, evidence and expected recovery time for taxes or deposits | Show separately; do not treat as recovered before confirmation |
| Uncertain charges | Exchange rates, inspection, demurrage or additional delivery | Show scenarios and their basis, not as costs already incurred |
Declared value cannot be replaced with one universal “goods plus freight” formula. Under the US customs valuation rules (2025 edition), when transaction value is used it starts with the price actually paid or payable, plus applicable additions; one example excludes ocean freight and insurance from transaction value. Therefore a quote including freight and insurance should not be used as the declared value without checking. This explanation concerns US rules only; confirm the applicable valuation method and adjustments for the actual declaration. Other destinations may use different rules. Put transport in the commercial budget and the customs declaration tax base in separate columns rather than substituting one number for the other.
Separate cash needs from final cost
Keep two reconciled tables: one for expected and actual payment dates, payment amounts and expected recovery dates; the other for expenses ultimately borne by the business within the agreed scope. Even money expected to be recovered may tie up cash first. If eligibility or timing is unconfirmed, show it separately rather than treating it as cash already received. Include amounts expected to be irrecoverable in cost according to the company's chosen basis.
For UK import VAT, HM Revenue & Customs' return guidance says postponed import VAT must still be accounted for in the relevant return period; normal rules apply to reclaiming it as input tax, with information in the monthly statement supporting the claim. This does not establish that every buyer may postpone or reclaim VAT, and it cannot be applied to other countries. The importer and tax adviser should verify the entity, use of the goods, documents, timing and recoverable proportion. Keep customs, payment and tax documents for reconciliation.
Illustrative calculation: a batch of 500 pieces
The figures illustrate the calculation only. The assumed currency is US dollars; they are not a WTBF quote, an actual tax rate or a tax result in any jurisdiction. Assume merchandise costs $10000; the buyer separately pays $1000 for international and domestic transport and insurance, $300 for customs and warehouse-related services, and $700 in non-recoverable duty. A further $1200 in import tax must be paid upfront. Assume applicable rules and evidence confirm that all $1200 is later recovered, all 500 pieces arrive at the warehouse, and none of the items overlap.
| Perspective | Calculation | Assumed result |
|---|---|---|
| Cumulative cash outflow before recovery | 10000 + 1000 + 300 + 700 + 1200 | $13200 |
| Final net outlay after tax recovery | 13200 − 1200 | $12000 |
| Estimated landed cost per piece | 12000 ÷ 500 pieces | $24 per piece |
If the amount actually recoverable is zero and all other assumptions remain unchanged, final net outlay is $13200, or $26.40 per piece. If eligibility or timing is unconfirmed, retain both scenarios rather than claiming recovery is certain. The $13200 is cumulative outflow before recovery; when payment dates differ, it cannot automatically be called the cash peak at any one time. To calculate a peak, accumulate payments and actual receipts by date and consider other funding sources.
Turn the budget into a traceable decision
Keep each quote's source and date, convert consistently into a base currency, and record the planned and actual settlement exchange rates. Update currency conversion differences, new charges and refunds received separately; do not mix costs already incurred with future price increases or contingency provisions. You can model base, higher-freight and non-recoverable-tax scenarios, but these are planning assumptions, not actual quotes or compliance conclusions.
When comparing two suppliers, calculate each to the same warehouse and quantity, then put unit price, included services, separately paid charges, recoverable amounts, expected payment dates and unresolved items side by side. A lower goods price may no longer be lowest after adding charges; a higher budget may also buy a different scope of service. This table does not replace assessment of quality, product suitability, samples, contract or timing. For the merchandise quote itself, use the sweater quotation comparison guide. For delivery places and responsibilities, consult the FCA, FOB and DAP guide and check the applicable contract and trade terms.
What to include in an inquiry
Use the WTBF inquiry page to provide style and yarn requirements, size range, quantity per style and colour, destination country and warehouse address, desired warehouse arrival date, proposed delivery terms, services to include in the quote and known packing and documentation requirements. Browse knit pullovers for style references. Ask the supplier to state the quote currency, validity, delivery place and included charges; separately ask the forwarder, customs broker and tax adviser to verify transport, import and recoverable items. Actual prices, service scope, taxes and timing depend on terms confirmed by the parties.