How to Calculate Landed Cost for Linen Imports from India
FOB price, freight, insurance, customs duty, and broker fees - a complete step-by-step landed cost calculation guide with worked examples
Step 1: Start with FOB Price from Supplier
What FOB price includes
FOB (Free On Board) is the price at which the supplier delivers goods to the port of loading - in India, this is typically Cochin (Kochi), Chennai, Nhava Sheva (Mumbai), or Tuticorin. The FOB price covers raw materials, manufacturing, packing, inland transport to the port, and the supplier's export documentation. It does NOT include international freight, insurance, or destination country costs.
Typical FOB benchmarks for Indian linen
Bath towels (550 GSM): $2.80–$4.20 FOB Cochin per piece Bed sheets (200 TC percale): $3.50–$5.00 FOB per set Pillow covers (200 TC): $0.80–$1.40 FOB per pair Hand towels (400 GSM): $1.00–$1.80 FOB per piece Prices vary with yarn quality (combed vs ring-spun), GSM, colour (white is cheapest, reactive dye adds 10–15%), and certifications (GOTS adds 15–20%).
Step 2: Add International Freight
Sea freight - the standard for bulk linen
For volumes above 1 CBM (approximately 800–1,200 kg of folded towels), sea freight is the default. FCL (Full Container Load) rates for a 20-foot container from Cochin to major ports: Rotterdam $900–1,400, UK ports £900–1,300, New York $1,200–1,800, Dubai $350–600. LCL (Less than Container Load) costs more per CBM but avoids the minimum container commitment.
Air freight - for urgent or small shipments
Air freight from India costs $4–8 per kg depending on origin airport and destination. A typical 100-kg bath towel shipment (approximately 200 pieces) costs $400–800 by air vs $120–200 by sea LCL. Air freight is 5–8× more expensive than sea but delivers in 3–5 days vs 18–35 days. Use air only for samples, urgency top-ups, or orders under 200 kg where sea LCL handling fees would dominate.
Freight forwarder quotes
Always get 3 freight quotes: from the supplier's recommended forwarder, your own freight broker, and a platform like Freightos or Flexport. Freight rates are volatile - always quote fresh within 2 weeks of booking. Rates from India to Europe were particularly compressed in 2025 following Red Sea routing surcharges.
Step 3: Add Insurance
Marine cargo insurance rate
Marine cargo insurance for textile shipments typically costs 0.3–0.5% of the CIF value (Cost + Insurance + Freight). For a $10,000 shipment, insurance adds $30–50. While technically optional under FOB terms (where the buyer arranges insurance), it is strongly recommended and often required by your bank if financing the shipment.
All-risk vs restricted coverage
All-risk marine cargo insurance covers physical loss or damage from any external cause. Restricted coverage (Free from Particular Average, FPA) is cheaper but excludes partial losses. For linen shipments where water damage or container moisture is a realistic risk, all-risk coverage is the correct choice. Add 10% to invoice value to cover freight costs in the insured sum.
Step 4: Calculate CIF Value
The CIF formula
CIF Value = FOB Price + Freight + Insurance Example: 5,000 bath towels at $3.50 FOB each = $17,500 FOB. Sea freight to Rotterdam = $1,100. Insurance at 0.4% of ($17,500 + $1,100) = $74. CIF = $18,674. CIF is the customs value on which import duty is calculated in most countries. Getting this figure right is critical for accurate duty cost estimates before committing to an order.
Why CIF matters for duty calculation
Most countries (EU, UK, Australia, India itself for imports) calculate import duty as a percentage of CIF value. The USA is an exception - US Customs calculates duty on FOB value only. This difference matters: a $1,000 freight cost adds $120 in EU duty (at 12% rate) but adds nothing to US duty. Always confirm the duty calculation basis with your customs broker for your specific destination country.
Step 5: Apply Customs Duty Rate by HS Code
Finding the correct HS code
Home textiles fall under HS Chapter 63. Common codes: • Bath towels (terry): HS 6302.60 • Bed linen (cotton): HS 6302.21 (printed) or 6302.31 (other) • Table linen: HS 6302.91 • Kitchen towels: HS 6302.51 Verify codes using your country's customs tariff tool: UK Global Tariff, EU TARIC database, or USITC for the US.
Duty rates by destination
Typical MFN (Most Favoured Nation) rates for Indian linen: • USA: 9.1% on towels (HS 6302.60), 6.5% on bed sheets • EU: 12% on most cotton linen (HS 6302.xx) • UK (post-Brexit): 12% standard, 0% under DCTS developing country preferential • Australia: 5% general rate • Canada: 18% MFN, but 0% under CPTPP for eligible goods • UAE: 5% standard VAT on import India enjoys preferential duty access in many markets - confirm with your broker whether your specific product qualifies.
Step 6: Add Customs Broker Fee
What a customs broker does
A licensed customs broker (also called customs agent or freight forwarder with customs authority) files your import declaration, classifies goods under the correct HS code, calculates and pays duty on your behalf, and clears goods from the port. They are not optional - customs clearance requires a licensed agent in most countries.
Typical brokerage fees
Standard customs clearance fees: $150–300 for simple single-commodity shipments in the USA; £100–250 in the UK; €120–280 in EU countries. Add ISF (Importer Security Filing) in the USA at $25–50. Some brokers charge a percentage of CIF value (0.5–1.5%) rather than a flat fee - compare total cost for your shipment size.
Step 7: Add Domestic Delivery to Warehouse
Port to warehouse delivery cost
After customs clearance, goods move from the container freight station (CFS) or port terminal to your warehouse. Costs vary by distance and volume: $150–400 for drayage from a major US port (Los Angeles, New York) to a nearby warehouse; £100–300 in the UK; €120–350 in major EU ports. For inland destinations, add $0.08–0.15 per tonne-km.
The complete landed cost formula
Landed Cost = FOB Price + Freight + Insurance + Customs Duty + Broker Fee + Port Handling + Domestic Delivery Worked example for 5,000 bath towels to New York: FOB: $17,500 Sea freight: $1,500 Insurance: $76 US Customs duty (9.1% of FOB $17,500): $1,593 Broker + ISF: $325 Drayage to NJ warehouse: $350 Total landed: $21,344 → $4.27 per towel Compare to EU equivalent at ~$5.50–6.00 landed per towel to understand why Indian sourcing is competitive.
Frequently Asked Questions
What does landed cost include for linen imports?
Landed cost is the total cost to get goods from the supplier's factory to your warehouse door. It includes: FOB price (product + export packing), international freight (sea or air), marine insurance, import customs duty, customs broker fee, port handling charges, and domestic delivery from port to warehouse. It does NOT include your internal storage, processing, or distribution costs.
Can I claim duty drawback on imported linen?
Duty drawback allows you to recover customs duty paid on imported goods that are subsequently re-exported or used in manufacturing for export. In the USA, Section 1313 drawback applies to linen importers who re-export the goods or manufacture products that are exported. In the UK and EU, similar inward processing relief schemes exist. The paperwork is complex - consult a specialist broker if you re-export more than $50,000 annually.
What is the difference between FOB, CIF, and DDP?
FOB (Free On Board): Supplier delivers to the port of export; buyer arranges and pays for international freight, insurance, and all destination costs. CIF (Cost, Insurance & Freight): Supplier arranges and pays freight and insurance to destination port; buyer pays import duty and onward delivery. DDP (Delivered Duty Paid): Supplier delivers to your door, paying all costs including duty. DDP is simplest for buyers but usually 15–25% more expensive per unit than FOB because the supplier builds in margin for logistics risk.
Can you give a real calculation example for UK linen imports?
Example: 3,000 bath towels, FOB price $3.80 each = $11,400 FOB. Sea freight Cochin to Felixstowe = £850 ≈ $1,060. Insurance (0.4%): $50. CIF value = $12,510. UK duty at 12% of CIF = $1,501. Broker fee = £180 ≈ $225. Drayage to warehouse = £150 ≈ $188. Total landed = ~$15,524 → $5.17 per towel. Compare to wholesale EU-sourced equivalent at €7–9 per piece.
What tools can I use to calculate import duty rates?
Use these free government tools: USA - USITC Tariff Database (usitc.gov) and CBP duty calculator. EU - TARIC database (ec.europa.eu/taxation_customs). UK - UK Global Tariff (gov.uk/trade-tariff). Australia - ABF Working Tariff (abf.gov.au). Always confirm your HS code with your customs broker before using these tools, as misclassification is a common (and costly) error.
What is your minimum order — can I buy just one carton?
Our standard minimum is 500 pcs / SKU for towels, 200 sets / spec for bed linen, and 200 pcs / style for bathrobes. "Per SKU" means per size and colour combination. We can run 300 pcs (trial run, small premium) for a genuine first trial. Below roughly 300 pieces we are honestly the wrong supplier — a loom set-up and a dye lot cost the same whether you order 100 towels or 1,000, so the per-piece price stops making sense for you. At that size a local wholesaler will serve you better, and we would rather tell you that than waste your week.
How much does a sample cost and how fast do I get it?
2 free pcs per spec — you pay courier only. Courier from Kerala to most countries runs $35–$60 via DHL or FedEx and arrives in 7–14 days. We recommend asking for two GSM weights side by side — most buyers change their mind about weight once they hold both. Sample cost is credited back against your first bulk order.
How do I pay, and what protects me if the goods are wrong?
30% advance, 70% against B/L copy — so 70% of your money is still with you when the goods leave the port. You get photos of the actual production run before the balance is due. You can also appoint a third-party inspector (SGS, Bureau Veritas or Intertek, roughly $300–$500 for a single inspection) to check the goods at our factory before you release the balance; we will schedule it and give them access. If a shipment does not match the approved sample, we remake or credit it.
Do I need an import licence to buy this?
In most countries, no — not for commercial quantities of ordinary cotton textiles. In the US, UK, EU, UAE, Australia and Canada, a business tax or VAT registration number is normally all that is required, and your freight forwarder or customs broker files the entry for you. Some markets do require an importer registration (Saudi Arabia and Egypt among them). Tell us your country and we will tell you plainly what you need before you commit any money.
What does it cost delivered to my door, not FOB?
FOB means the price to get goods loaded onto the ship at Cochin port — freight, duty and local delivery are on top. As a rough guide, sea freight adds $0.15–$0.45 per towel on a shared container and less on a full one; import duty is typically 6–12% depending on your country. We quote CIF (freight included) or DDP (everything included, delivered to your address) on request, so you can compare one final number instead of guessing. Our landed-cost calculator does the arithmetic for you.
Can I order without any certification requirement?
Yes, absolutely. Certification is not a hoop we make you jump through — it is simply how we already manufacture. Every piece is made under OEKO-TEX Standard 100 whether you ask for the certificate or not, and it costs you nothing extra. If you do not need the paperwork, do not ask for it and nothing about your order or price changes. Buyers who supply hotel groups or EU retailers usually want the documents; an Airbnb host or a salon owner almost never does.
How long from order to goods in my hands?
30–45 days for production, plus shipping. Sea freight is 10–16 days to the Gulf, 22–30 days to Europe and the UK, 28–38 days to the US east coast, and 18–25 days to Australia. Air freight cuts that to 3–5 days but costs roughly 6–8× more per kilo, so it is worth it for samples and rarely worth it for bulk. Plan on about 8–10 weeks door to door for a first sea shipment.
How do I know you are a real factory and not a middleman?
Fair question, and one you should ask everyone. We are a manufacturer in Kerala, India — you can video-call the floor during Indian working hours with no notice, and we will walk the looms and the dye house for you. We will also give you our IEC (Import Export Code) and GST registration to verify independently. A trading company will usually decline a live unscheduled video call, which is the cheapest test you can run on any supplier.
Can you put my brand on it?
Yes. Woven labels, printed care labels, embroidered logos, custom packaging and retail barcodes are all standard. Logo embroidery adds about $0.30–$0.60 per piece; a custom woven label adds about $0.06–$0.12. Private-label MOQ is 2,000 pieces per SKU rather than 500, because the label and packaging themselves carry a minimum run.
Get an All-In Landed Cost Quote
Anabyn provides CIF and DDP pricing options so you know your total landed cost before committing to an order. Request a quote with your destination country and we will calculate your full cost breakdown.
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