10 Hidden Costs You Forget While Importing From India

Many times both, the Buyer (or importer) and the Indian exporter forget these hidden costs while importing from India.

You will understand why Indian exporters want bigger shipments and why smaller shipments might make them look non-competitive.

These costs are:

⚙️ Significant, if you import LCL;

⚙️ Peanuts, if you import a Full container (FCL)

This blog shall also explain why Indian exporters are interested in higher Invoice Value shipment. 

 

For my explanation, I would segregate the two types of hidden costs as follows:

— Variable: Changes with the shipment size or CBM

— Fixed: Doesn’t change with the shipment size or cbm.

 

Let us assume you are importing 1 CBM from India. The agreed incoterms are FOB, India Port.

The exporter (or your supplier) shall TYPICALLY incur the following costs:

 

1. Transportation (moving goods from Factory to Port):— Variable

✈️ For Air Shipment: $ 30

🛳 For Sea Shipment: $ 30

—————————

2. Port Fee: — Variable

✈️ For Air Shipment: $ 0

🛳 For Sea Shipment: $ 10

—————————

3. Documentation Fee (for customs clearance):— Fixed

✈️ For Air Shipment: $ 8

🛳 For Sea Shipment: $ 8

—————————

4. Custom House Agent Fee:— Fixed

✈️ For Air Shipment: $ 65

🛳 For Sea Shipment: $ 80

—————————

5. Certification Fee (e.g. SCOMET etc.):— Fixed

✈️ For Air Shipment: $ 100

🛳 For Sea Shipment: $ 100

—————————

6. Fumigation:—Fixed

✈️ For Air Shipment: $ 25

🛳 For Sea Shipment: $ 25

—————————

7. From Dry Port to Sea Port:—Variable

✈️ For Air Shipment: $ 0

🛳 For Sea Shipment: $ 35

—————————

8. Bill of Lading Fee:— Fixed

✈️ For Air Shipment: $ 45

🛳 For Sea Shipment: $ 45

—————————

9. Sending Documents to overseas clients:— Fixed

✈️ For Air Shipment: $ 0

🛳 For Sea Shipment: $ 45

—————————

10. Bank Fee:— Fixed

✈️ For Air Shipment: $ 22

🛳 For Sea Shipment: $ 22

—————————

 

TOTAL:

✈️ For Air Shipment: $ 229

🛳 For Sea Shipment: $ 400

 

 

You will see why Indian exporters want bigger shipments and why smaller shipments might make them look non-competitive.

That’s why I call them the hidden costs you forget while importing from India.

 

 

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Rajneesh Kumar