buying-guide

First Import Order: Landed Cost and Buying Steps

A step-by-step guide for first-time importers on calculating landed cost and managing enquiry, inspection, payment, loading, documents and customs.

Start with a complete enquiry

Begin your first import order by sending a detailed enquiry to your chosen exporter. Include the make, model, year, preferred mileage range, transmission, fuel type, and any specific features you need. Also state your destination port and country, because these affect shipping and customs. A complete enquiry helps the exporter confirm availability and prepare an accurate quotation. Without these details, you may receive generic offers that do not match your market or budget.

When you receive a quotation, ask for a breakdown of the vehicle price, inland transport to the port of loading, export documentation, and ocean freight if the exporter arranges it. Request the currency and validity period of the quote. This breakdown is the foundation for calculating your landed cost. If any line is unclear, ask the exporter to explain what is included and what you must pay separately at destination.

Inspection before you commit

Before paying, arrange an inspection of the vehicle. You can ask the exporter for a condition report with photos and videos, or hire a third-party inspector in the country of export. The inspection should cover the exterior, interior, engine, transmission, chassis, and odometer. Confirm that the vehicle identification number matches the documents. This step reduces the risk of receiving a vehicle that does not match the description or has hidden damage.

If you cannot inspect in person, ask for specific photos: all four corners, the dashboard with mileage, the engine bay, the trunk floor, and the undercarriage. Request a short video of the engine starting and idling. Review these materials carefully. If the seller cannot provide them, consider another vehicle. A thorough inspection now prevents costly surprises after the vehicle arrives at your port.

Payment terms and loading

Agree on payment terms in writing before you send money. Common methods include bank transfer, letter of credit, or escrow services. For a first order, a letter of credit or escrow can protect both parties. Never pay the full amount without a contract that states the vehicle details, price, payment schedule, and responsibilities for shipping and documents. Keep records of every payment. The exporter should confirm receipt and provide a payment receipt.

After payment, the exporter arranges loading onto the vessel. Ask for the loading date, the vessel name, and the estimated departure and arrival dates. Request photos of the vehicle being loaded and the bill of lading details. The bill of lading is a key document for customs clearance. Confirm whether the shipment is roll-on roll-off or containerized, as this affects cost and handling. Keep in touch with the exporter until the vessel departs.

Documents you must receive

The exporter must provide a set of documents for customs clearance. These typically include the bill of lading, commercial invoice, packing list, certificate of origin, and export certificate or deregistration document. For some destinations, you may also need a fumigation certificate or a pre-shipment inspection certificate. Ask the exporter which documents are required for your country. Missing or incorrect documents can delay clearance and incur storage fees at the port.

Check that the vehicle identification number on all documents matches the vehicle. The invoice should show the purchase price, which customs may use to assess duty. The bill of lading must name the consignee correctly. If you are unsure, ask a customs broker in your country to review the documents before the vessel arrives. This early review helps you correct errors while the vehicle is still in transit.

How to calculate landed cost

Landed cost is the total amount you pay to bring the vehicle to your destination and clear it for use. Start with the vehicle purchase price. Add inland transport to the port of loading, export documentation fees, and ocean freight. Then add marine insurance if you choose it. These costs are usually paid to the exporter or freight forwarder. Keep every receipt to verify your calculation.

At destination, add import duty, value added tax or sales tax, port charges, terminal handling, customs broker fees, and inland transport to your final location. Duty and tax rates vary by country and are often based on the vehicle's customs value, engine size, and age. To find the exact rates, contact your local customs authority or a licensed customs broker. They can provide the current percentages and any exemptions. Add all these amounts to get your landed cost per vehicle.

Frequently asked questions

What costs are included in landed cost for an imported used car?
Landed cost includes the vehicle price, inland transport to the port of loading, export documentation, ocean freight, marine insurance, import duty, value added tax or sales tax, port charges, customs broker fees, and inland transport to your final location. Ask your exporter and customs broker for a full breakdown to avoid missing any item.
How do I find the import duty rate for my country?
Contact your local customs authority or a licensed customs broker. They can provide the current duty and tax rates based on the vehicle's customs value, engine size, and age. Do not rely on general estimates, because rates change and vary by destination.
What documents should I receive after payment?
You should receive the bill of lading, commercial invoice, packing list, certificate of origin, and export certificate or deregistration document. Depending on your country, you may also need a fumigation certificate or pre-shipment inspection certificate. Confirm the exact list with your customs broker before the vessel arrives.
All guides

Featured Vehicles

View all inventory