One of the most common mistakes in international trade is relying solely on the supplier's invoice price when budgeting for imported goods. In reality, the true cost of an item is only clear after adding all logistics, customs, and administrative expenses. In business economics, this is known as the Landed Cost (the final cost of the product delivered to your warehouse).
In this guide, we break down step-by-step how to calculate the total landed import cost in Armenia.
1. Product Purchase Price (Invoice Value)
This is the amount paid to the foreign supplier. The scope of expenses included in this price depends on the Incoterms agreed upon:

• EXW (Ex Works): You pay for the product only; pickup, shipping, and export clearance are your responsibility.
  
• FOB (Free on Board): The supplier covers costs up to loading the shipment onto the vessel/aircraft.
  
• CIF (Cost, Insurance, and Freight): The invoice price includes international transport and insurance to the destination port or border.
  

2. Logistics and Transportation Costs
Freight charges to deliver goods into Armenia constitute a significant portion of the landed cost:

• International Freight: Sea, air, rail, or road transportation fees.
  
• Cargo Insurance: Coverage for potential loss or damage during transit.
  
• Local Delivery: Transport from the Armenian border or customs terminal to your final warehouse.
  

3. Customs Value and Import Taxes
Customs authorities calculate taxes based on the customs value, which equals the invoice price plus international freight and insurance costs to the border.

1. Customs Duty (0% – 20%): Assessed on the customs value according to the product's 10-digit HS Code.
   
2. Value Added Tax (VAT / 20%): Calculated using the formula:
   
   

$\text{VAT} = (\text{Customs Value} + \text{Customs Duty} + \text{Excise Tax}) \times 20\%$

2. Excise Tax: Applies only to specific excisable categories (alcohol, tobacco, fuel, lubricants).
   

4. Terminal and Administrative Fees
Beyond core taxes, operational fees at the destination must be factored in:

• State Customs Fees: Administrative processing fees starting from AMD 3,500.
  
• Customs Terminal Charges: Handling, storage, and weighing fees at private terminals (e.g., Apaven, ULS, Metexim, Alliance).
  
• Certificates & Permits: Expenses for sanitary, phytosanitary, or healthcare inspections and certifications.
  

Summary
Calculating the exact landed cost allows businesses to protect profit margins and prevent unexpected operational deficits.
In many cases, consulting a customs broker is essential for accurate clearance and cost estimation. You can submit your request for free on brokers.am to receive multiple competitive offers from experienced customs brokers and choose the option that best fits your business needs.