Use this template to compare supplier quotations on a consistent basis and estimate the total cost of getting the goods to the buyer’s named destination. A factory price or FOB price is only one part of the landed-cost picture. The final calculation depends on the product classification, destination market, customs valuation rules, trade term, logistics route, tax treatment and actual shipment data.
Part A — Comparison basis
Buyer / project: ____________________ Product / SKU: ____________________
Origin city / supplier: ____________________ Destination port / place: ____________________
Order quantity: __________ Saleable units expected: __________
Quote currency: __________ Reporting currency: __________
Exchange rate and date / source: ______________________________________________
Incoterm and named place: __________ Quote validity: __________
Part B — Supplier quotation comparison
| Cost / assumption | Supplier A | Supplier B | Supplier C |
|---|---|---|---|
| Unit price and currency | ________ | ________ | ________ |
| MOQ and quoted quantity | ________ | ________ | ________ |
| Incoterm / named place | ________ | ________ | ________ |
| Packaging included / excluded | ________ | ________ | ________ |
| Sample / development charge | ________ | ________ | ________ |
| Testing / inspection charge | ________ | ________ | ________ |
| Production lead time | ________ | ________ | ________ |
| Payment terms | ________ | ________ | ________ |
Part C — Landed-cost components
| Cost component | Total amount | Currency | Basis / evidence |
|---|---|---|---|
| Purchase order product value | ________ | ________ | Supplier invoice / quote |
| Tooling / development amortised to order | ________ | ________ | Separate one-time cost |
| Origin inland transport | ________ | ________ | Route / provider quote |
| Origin handling / export charges | ________ | ________ | Invoice / forwarder quote |
| International freight | ________ | ________ | Mode / route / validity |
| Insurance | ________ | ________ | Policy / quote |
| Customs duty and import levies | ________ | ________ | Broker / tariff source |
| Import taxes (recoverable / non-recoverable split) | ________ | ________ | Tax advice / tax treatment |
| Customs clearance / destination handling | ________ | ________ | Broker / terminal quote |
| Destination inland delivery | ________ | ________ | Delivery quote |
| Other allocable cost / contingency | ________ | ________ | State the assumption |
Part D — Calculation method
1. Convert quote amounts: amount in reporting currency = source-currency amount × the documented exchange rate used for the estimate. Record the rate source and date.
2. Calculate the landed-cost total: add the applicable purchase and allocable order costs, origin charges, freight, insurance, duty, non-recoverable taxes, destination charges and delivery. Avoid double-counting services already included in the quoted Incoterm.
3. Calculate cost per saleable unit: total costs included in the selected landed-cost definition ÷ expected saleable units. If you include expected damages, shortages or inspection losses, state how the saleable-unit figure was estimated.
4. Separate recoverable taxes: do not automatically treat recoverable VAT/GST or other input taxes as a permanent product cost. Record cash-flow impact separately and confirm treatment with the buyer’s tax adviser or finance team.
Part E — Commercial assumptions and risk
- ☐ Supplier quotation is based on the same specification and quantity for every comparison.
- ☐ Incoterm version and named place are clearly stated.
- ☐ Freight quote includes route, mode, equipment, surcharge assumptions and validity.
- ☐ Customs classification and origin have been reviewed for the specific goods.
- ☐ Duty, levy and tax assumptions are validated for the import date.
- ☐ Recoverable taxes are separated from non-recoverable landed costs.
- ☐ Packaging and carton measurements are realistic for freight calculations.
- ☐ Currency rate, payment terms and contingency assumptions are documented.
Important customs and tax note
Do not estimate duty by applying a generic percentage to the supplier’s unit price. Customs valuation, tariff classification, country of origin, trade remedies, valuation adjustments and tax bases differ by jurisdiction and may change. Have the importer’s customs broker or qualified adviser confirm the correct tariff code, customs value and applicable charges for the specific shipment. State whether the landed-cost figure is at port, at warehouse or at the buyer’s final delivery location.
Related resources
See How to Compare Landed Cost When Sourcing from India, China and Vietnam, India vs China for Home Textiles and RFQ Management and Cost Negotiation.
For supplier quote coordination and order-cost clarification in India, contact connect@vanguard-sourcing.com. Freight, duty, tax and customs figures must be validated for the specific shipment and destination market.
For more India sourcing guidance, visit the International Buyer Sourcing Resources hub or browse the International Sourcing Knowledge Centre. Practical buyer tools are available in the India Sourcing Buyer Toolkit.