The most common mistake first-time importers from India make is treating the ex-works or FOB price as the landed cost, then being surprised when the freight forwarder's invoice arrives after the goods do. The landed cost is the ex-works price plus seven more layers, some fixed, some proportional to cargo value, and two of them (import duty and pre-shipment inspection) manageable if you understand the structure before you commit to an order. Here is where every dollar goes on an Indian metal import, with actual numbers for three destination routes.
The 8 cost layers of an Indian metal import, in order
- 1. EX-WORKS (EXW) factory price: the manufactured product including raw material, fabrication, surface finish, testing and documentation (MTC, inspection reports). This is what appears in the Vajra quotation for goods at our Howrah factory gate.
- 2. Inland freight to port: transport from Howrah to Kolkata Port (INKOL) or Haldia Dock Complex (INHAL) by road. Approximately USD 1.50–2.50 per cbm for standard FCL containers. On a 40ft container (~67 cbm of cable tray), inland freight is USD 100–170.
- 3. Terminal Handling Charges and port levies at origin: approximately USD 100–180 per 20ft, USD 150–260 per 40ft at Kolkata/Haldia. Carrier-specific and negotiated; rates are set by the port and are not discountable by the exporter.
- 4. Pre-shipment inspection (PSI): SGS, Bureau Veritas or buyer-nominated inspector at the factory. Covers dimensional verification, MTC review and visual quality check. Cost: USD 350–600 per inspection visit regardless of container count. Per MT on a 20 MT container, this is USD 17–30 per MT, the highest ROI cost in the shipment chain.
- 5. Sea freight (origin to destination port): the largest single variable. Current approximate rates (June 2026): Kolkata–Jebel Ali 20ft USD 800–1,200 / 40ft USD 1,200–1,800. Kolkata–Felixstowe 40ft USD 1,800–2,800. Kolkata–Port Botany Sydney 40ft USD 2,200–3,200. Kolkata–Manila 40ft USD 1,400–2,000. Rates shift ±30% seasonally, use these for budget planning, not for quotation.
- 6. Marine cargo insurance: all-risks coverage is 0.10–0.25% of CIF value (= invoice + freight + 10% buffer). On a USD 30,000 FOB cable tray order to UAE (CIF approximately USD 32,000), insurance is USD 32–80.
- 7. Import duty at destination: UAE standard MFN 5% / CEPA P-CoO 0%. UK: 0% on most HS 7308 and 7407 categories under UK Global Tariff. Australia: 0% on most steel products. USA: 0–25% depending on product and Section 232 applicability. Always verify with destination customs broker.
- 8. Destination port charges, customs clearance, local delivery: port handling at Jebel Ali approximately USD 200–320 per 40ft. Customs clearance agent: USD 150–400. Local inland delivery highly variable. USD 200 within Dubai, USD 800–2,500 for Saudi Arabian inland sites.
Worked example 1. 40ft of HDG cable trays to Dubai, UAE
Scenario: 20 MT of HDG ladder and perforated cable trays, widths 300–600 mm, ASTM A123 finish. FOB Kolkata value USD 28,000. Container: 1×40ft HQ. Landed cost calculation: EXW (28,000) + inland freight (130) + THC/port charges (220) + PSI inspection (500) + sea freight Kolkata–Jebel Ali 40ft (1,500) + marine insurance 0.15% of CIF (45) + import duty WITHOUT CEPA P-CoO 5% of CIF USD 29,895 = USD 1,495 + destination port charges (280) + customs clearance (200) + local delivery Dubai Industrial City (350) = TOTAL WITHOUT CEPA: USD 32,720 → USD 1,636/MT. TOTAL WITH CEPA P-CoO (duty = USD 0): USD 31,225 → USD 1,561/MT. CEPA saving on this single shipment: USD 1,495.
Worked example 2. 40ft mix-load of cable trays + earthing to Felixstowe, UK
Scenario: 15 MT cable trays + 5 MT earthing electrodes and strips, mix-loaded in 1×40ft standard container. FOB Kolkata value USD 32,000. Landed cost: EXW (32,000) + inland freight (130) + THC/port charges (220) + PSI inspection (500) + sea freight Kolkata–Felixstowe 40ft (2,400) + marine insurance (55) + UK import duty on HS 7308 and HS 7326 under UK Global Tariff: 0% = USD 0 + Felixstowe port handling (380) + UK customs clearance (350) + local UK delivery Birmingham (600) = TOTAL: USD 36,635 → USD 1,832/MT. UK imposes zero import duty on these HS categories, the route cost is dominated by the longer sea freight leg.
Worked example 3. 40ft of cable trays + gratings to Sydney, Australia
Scenario: 12 MT HDG cable trays + 8 MT electroforged gratings. FOB Kolkata value USD 34,000. Landed cost: EXW (34,000) + inland freight (130) + THC/port charges (220) + PSI inspection (500) + sea freight Kolkata–Port Botany 40ft (2,800) + marine insurance (58) + Australian import duty on HS 7308 under MFN: 0% = USD 0 + Australian Border Force biosecurity levy ~USD 7 + Port Botany wharfage and port charges (420) + Australian customs clearance (450) + local delivery Western Sydney (800) = TOTAL: USD 39,385 → USD 1,969/MT. Australia has zero duty on structural steel and cable management, the premium vs UAE is in longer transit distance and higher local port and delivery costs.
The 3 levers that move the landed cost most
- Claim CEPA preferential duty for UAE: saves 5% of CIF value, costing you nothing to request. On a USD 30,000 FOB order, that is USD 1,500 in duty savings on a single shipment, more on larger or multi-container orders.
- Consolidate to full container loads (FCL vs LCL): an LCL consolidation adds USD 80–120 per cbm in consolidation surcharges on top of sea freight. The unit cost per MT in LCL is typically 30–50% higher than FCL at the same freight rate. If your order is less than a full container, consolidate multiple product categories into a single container rather than splitting across two LCL shipments.
- Budget PSI at the factory, not rework after delivery: pre-shipment inspection at USD 450–600 eliminates the cost of a non-conforming shipment, replacement production (weeks), repeat sea freight (thousands), customs re-export paperwork. PSI is the highest-ROI line item in the entire cost chain.
Rule of thumb for budget planning: landed cost to UAE (with CEPA) is FOB plus 12–18%. To UK: FOB plus 18–25%. To Australia: FOB plus 22–28%. These widen when freight rates spike and narrow when capacity is available. Always build a 10% contingency for port surcharges and clearance delays.
Want a FOB quotation with freight and duty estimates for your destination? We quote cable trays, earthing systems and structural metal FOB Kolkata with full export documentation included.