What goes into the price of a part from China delivered to you

The plant's price is only the first line. On the way to your warehouse it is joined by packing for the road, transport with transshipments, insurance, lot inspection, customs payments, certification and clearance, and delivery from customs to the warehouse. One important detail: customs payments in Uzbekistan are calculated not from the plant's price but from the customs value. That value includes the freight to the point of entry. So expensive transport raises the payments too. Below are all the items in order and what each depends on. There are no figures here on purpose: they change faster than an article.

Cost items along the cargo's way

Who pays for what: terms of delivery

The contract decides who pays for each stage. For this the Incoterms rules of the International Chamber of Commerce are usually used: a set of eleven terms of three letters. They split costs, risks and duties between seller and buyer. A rule applies only if it is written into the contract.

One thing matters for the buyer: a price "ex works" and a price "delivered to the place" are different prices, and they cannot be compared directly.

• Under "ex works" (EXW) the seller only prepares the goods at his premises. Transport and costs beyond that are the buyer's.
• Under "free carrier" (FCA) the seller hands the cargo to the carrier; from that moment the risk is the buyer's.
• Under "delivered at place" (DAP) the seller carries the cargo to the named place and is responsible for it until arrival.
• Under "delivered duty paid" (DDP) the seller takes on everything, including import.

When you are quoted a price, ask under which term and to which place.

Customs payments

Under the Customs Code of Uzbekistan, import is subject to customs duty, value added tax, excise tax and customs fees. Excise tax is paid only on goods for which it is set. Duty rates are set by the President and they change. So the rate for a particular item is looked up on the day of import, by its goods code.

What is included in the customs value

The basis of the customs value is the transaction price. If something was not included in the price, customs adds it. The Code names:

• transport to the point of import;
• loading, unloading, handling and transshipment;
• insurance;
• commission and brokerage fees, except a buying commission;
• the cost of packing and reusable containers.

The same approach is built into the international WTO Agreement on Customs Valuation. Each country decides whether to include transport, loading and insurance up to the point of import; Uzbekistan includes them.

What changes the payments

• HS code. The duty rate and the need for certification depend on it. The same part sometimes fits different codes. Choosing the code is not a formality.
• Country of origin and certificate of origin. If there is no certificate, the Code allows an additional duty to be applied.
• Exchange rate. The contract price is in yuan or dollars, while payments are calculated in soums. The conversion procedure is set by the Customs Code, so the total depends on the rate on the date of clearance.

What else affects the total

• Lot size. Delivery, clearance and inspection cost about the same for one part as for ten. For a single item their share is higher.
• Weight and size. A light, expensive unit is worth moving by fast transport. A heavy, inexpensive one goes by slow, cheap transport.
• Urgency. The faster you need it, the narrower the choice of route.
• Packing. Saving on the crate turns into damage on the road and another round of delivery.
• A mistake in sourcing. The most expensive item is the second delivery, if the first arrived wrong.

Why we do not publish prices

In supply, the price depends on the lot, the delivery terms and the exchange rate on the contract date. A number on a website would already be untrue by the time you read it. Duty rates and carrier tariffs change too. So an honest price is calculated for your item and your lot.

How we do it

• We calculate the price for your lot: plant, packing, road, clearance, delivery to the warehouse.
• We choose the route by the value of the lot and how urgently it is needed.
• We take a single-item order from the plant. The share of logistics in it is higher, and we say so before the calculation.
• Clearance for import into Uzbekistan (HS code, certificate of conformity, declaration) is on TAMINOTA's side.