Import Costs: What They Really Mean for Your Business

When you order tissue rolls or home accessories from abroad, the price you see on the supplier’s website isn’t the final bill. Shipping, taxes, and hidden fees quickly turn that quote into a surprise. Knowing exactly where those extra dollars come from lets you plan better and avoid nasty cash‑flow shocks.

What Makes Up an Import Cost

Think of an import cost as a pizza with several slices. The base price of the product is just one slice; the rest are the things most people forget about.

• Freight charges – air freight is fast but pricey; sea freight is cheap but slower. Your choice changes the total by anywhere from 5% to 30% of the product value.
• Customs duties – each country has a tariff schedule based on the HS code you use. A 10% duty on a $1,000 order adds $100 to the bill.
• Taxes and GST – India levies GST on imported goods. The rate varies by category, so a tissue product might be taxed at 18% while a metal fixture could be 28%.
• Port handling and clearance fees – terminals charge for loading, unloading, and paperwork. These fees often run between $50 and $200 per container.
• Insurance – protecting your shipment against loss or damage adds a small percentage (usually 0.5%–1% of the cargo value).

Each slice can be trimmed if you know the rules. For example, using the correct HS code can lower duty rates, and bundling several small orders into one container can spread handling fees across more units.

Practical Ways to Keep Import Costs Low

Now that you see what’s inside the price, here are five easy actions you can start today.

• Ask suppliers for FOB (Free on Board) quotes instead of CIF. FOB lets you pick the freight forwarder, often at a better rate.
• Negotiate bulk discounts on freight. Shipping lines love volume, so a 20% loading on a 40‑foot container can shave hundreds off the total.
• Use a reputable customs broker. A good broker knows which exemptions apply and can prevent costly mis‑classifications.
• Plan shipments around low‑season periods. Ports are less congested, and carriers may offer off‑peak pricing.
• Consider local sourcing for high‑turn items. Our own Innovative Tissues India plant produces high‑quality tissue locally, cutting both freight and duty expenses.

By tracking each cost slice and applying these tweaks, you’ll see a noticeable drop in the final amount you pay. Import costs don’t have to be a mystery – treat them like any other business expense, and you’ll stay ahead of the budget curve.