The formula
Landed cost = FOB price of the engines + sea freight + marine insurance + import duty + import taxes (VAT or equivalent) + pre-shipment inspection and certificates + port, clearing and agency charges + inland transport to your warehouse. Divide by the number of engines to get the landed cost per unit — the only number to compare with your selling price.
Duty and VAT are usually calculated on the CIF value (FOB + freight + insurance), not on the FOB price alone, so freight raises your tax bill as well as your freight bill. Check how your country values imports with your clearing agent.
| Component | Who sets it | Where to get the figure |
|---|---|---|
| FOB price | The supplier | Written quotation / proforma invoice |
| Sea freight | The shipping line, via a forwarder | Live quote for your lane and booking date |
| Insurance | Your insurer | Usually a small percentage of the cargo value |
| Import duty | Your country's tariff | HS 8407 / 8408 rate from your customs schedule |
| VAT / import taxes | Your country's tax rules | Clearing agent |
| Certificates and inspection | Destination programme (PVoC, SONCAP, SABER…) | Inspection body or agent |
| Port, clearing and agency | Port and your agent | Clearing agent's tariff |
| Inland transport | Your trucker | Local quote |
A worked example
Take a 20-ft container of 90 Toyota 1NZ-FE engines at our published price of US$ 780 each: the FOB value is US$ 70,200. Suppose, only for the arithmetic, that freight to your port is US$ 4,000, insurance US$ 350, duty 10 % and VAT 16 % on the CIF value, certificates US$ 600, clearing and port charges US$ 1,500 and inland transport US$ 800.
CIF value: 70,200 + 4,000 + 350 = US$ 74,550. Duty at 10 %: US$ 7,455. VAT at 16 % on CIF + duty (82,005): US$ 13,121. Add certificates, clearing and trucking (US$ 2,900) and the landed cost is about US$ 98,026 — about US$ 1,089 per engine. The freight, duty, tax and charge figures here are assumptions for illustration, not quotes; replace them with your own. Where VAT is recoverable for your business, your real cost is lower.
What moves the landed cost most
Freight per unit falls as the container fills: the same freight spread over 130 engines in a 40-ft costs less per engine than over 90 in a 20-ft. But a 40-ft you cannot sell through in reasonable time ties up money, which is also a cost — see how to plan a container mix.
Freight has also been unusually volatile in 2026, particularly into the Gulf. Never plan with last year's rate: get a live quote for your lane before ordering. The container quoter gives you the FOB total for any mix in a minute; your forwarder adds the rest, and the landed cost calculator turns all of it into a cost per engine.
Price a container yourself
Build the mix you want in the online quoter — 90 engines in a 20-ft or 130 in a 40-ft, or 45 + 45 / 65 + 65 with gearboxes — and the FOB total reaches your inbox the same minute, at our published per-unit prices, every engine Grade A. Prefer to ask? Tell us the destination country and the models you need and we reply within one business day, usually within hours.
Frequently asked
What is landed cost?
The total cost of goods once they reach your warehouse: FOB price plus freight, insurance, duty, taxes, certificates, clearing and inland transport.
Is import duty charged on the FOB or CIF value?
In most countries on the CIF value (goods + freight + insurance), so freight also increases the duty and VAT. Confirm how your country values imports with your clearing agent.
Are ENGICOR prices FOB or CIF?
FOB. Freight is quoted separately per lane and booking, and route and Incoterm are confirmed in each quotation.