FOB is the start of the story, not the end. Landed cost is what you actually pay for goods to sit in a Serbia warehouse, ready to sell or install. This example uses illustrative figures for a buy of about 50,000 EUR FOB, so you see the cost structure. Your HS codes, Incoterms and route change the result. This is not an offer and not tax advice.
Tool and logic: Landed cost.
Assumptions
Goods
generic consumer / industrial range (not dangerous goods).Value
50,000 EUR FOB Ningbo.Volume
~28 CBM (fits a 20' or part of a 40').Freight
sea plus truck last mile to Belgrade.VAT and duty
illustrative. Confirm with the broker.FTA
scenario with and without preference (FTA in force from 1 July 2024).
Landed structure
- FOB / EXW purchase
- Local China costs (if EXW)
- International freight plus insurance
- Destination costs (port / terminal)
- Duty (if any)
- VAT (on the prescribed base)
- Customs broker
- Domestic transport plus warehouse
- QC / bank / unexpected
Scenario A: no FTA preference (illustrative)
| Line | Amount (EUR) | Note |
|---|---|---|
| FOB value | 50,000 | Factory invoice |
| Sea freight plus insurance | 3,200 | Season / CBM |
| Destination plus THC / local fees | 900 | Port plus handling |
| Duty 6% on ~54,000 base | 3,240 | Illustrative rate |
| VAT 20% on (base plus duty) | ~11,500 | Illustrative. Recoverable for firms in the system |
| Broker plus declaration | 350 | |
| Transport to warehouse | 600 | |
| QC before shipment | 280 | Recommended |
| Orient landed (ex VAT as cost if recovered) | ~58,600 plus VAT cash |
For many legal entities VAT is a cash flow, not a “cost”. Duty and freight are a cost.
Scenario B: FTA preference 0% duty (illustrative)
Same setup, but valid origin proof and an HS line with 0% preference:
| Line | Amount (EUR) |
|---|---|
| FOB plus freight plus destination plus broker plus last mile plus QC | ~55,300 |
| Duty | 0 |
| VAT still on the prescribed base | (cash flow) |
Illustrative duty saving in this example: ~3,240 EUR. Not universal. Some HS codes have different rates or conditions. Always verify.
Papers: certificate of origin and FTA and Serbia-China FTA.
Where firms miss the math
- They compare FOB with a local supplier who already has VAT and delivery.
- They forget destination costs and demurrage.
- They count 0% duty “because there is an FTA” without CO.
- They ignore bank costs TT / LC.
- They skip a 2–5% buffer for rework / storage.
- LCL wait in consolidation. Time is money.
Hidden costs: Hidden import costs.
At ~28 CBM near a 20' FCL, FCL often beats LCL on unit cost and date. At 8 CBM, LCL plus consolidation may be the only sense. QC on jobs above 2,000 USD is a line, not a wish. Sea about 35–52 days.
Send HS frame, CBM and Incoterms via contact for a structure on your SKU, still illustrative until the broker confirms rates.
Next step
Send the request: category, quantity, and date. You get a reply within 24 hours, with an outline of the total cost to destination where we can price it.
