Global Supply Network

Landed cost, quick answers

What is landed cost?
Landed cost is the total cost of a product delivered to your Australian warehouse, including the factory ex-works price, export packing, inland freight in the origin country, ocean or air freight, marine insurance, Australian customs duty, GST, brokerage, terminal handling and final-mile delivery.
How much does freight typically add?
For CNC parts sourced from Asia to Sydney, sea freight in a shared container (LCL) adds roughly 8 to 15% on top of ex-works. Full container load (FCL) is cheaper per kilo but only makes sense above ~5 cubic metres. Air freight adds 40 to 80% but cuts weeks off the lead time.
Is GST refundable?
GST-registered Australian businesses can generally claim import GST back through their next BAS. It is a cash-flow cost, not a P&L cost. Import duty is not refundable and depends on the tariff code.
What is a realistic landed cost multiplier?
As a rough rule of thumb for CNC parts from Asia by sea, landed cost sits at 1.20x to 1.35x ex-works once freight, duty, GST, brokerage and delivery are included. Air freight pushes it to 1.50x or higher. Programs with tooling amortisation push it higher again for the first order.

/ Guides & Insights

The true landed cost of importing machined parts into Australia

By Chris Perfetti9 min

Ex-works price is the number that goes on the quote. Landed cost is the number that goes on your P&L. They are rarely the same, and the gap is where offshore programs quietly bleed margin.

The line items you actually pay

  • • Ex-works price (the factory number).
  • • Export packing, palletising, fumigation.
  • • Inland freight to the origin port.
  • • Ocean freight (LCL or FCL) or air freight.
  • • Marine insurance.
  • • Australian customs duty (tariff code dependent).
  • • GST (refundable if registered).
  • • Customs brokerage and quarantine.
  • • Terminal handling and de-vanning.
  • • Final-mile freight to your workshop.

A realistic multiplier

For CNC parts from Asia by sea, expect landed cost to sit at 1.20x to 1.35x the ex-works price. Air freight pushes it to 1.50x. On first orders, tooling amortisation makes the first shipment look worse than steady-state.

Where hidden cost lives

Rework, scrap, expedite freight, holding stock to cover long lead times, currency swings, and the cost of the person managing the program. If you do not model these, offshore savings evaporate.

How GSN prices programs

We quote landed cost, not ex-works. Duty, GST, brokerage and final-mile are on one Australian invoice. See overseas manufacturing for the full program shape.

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