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Why We Don't Quote China Imports Only by CBM

Understand why a low CBM rate is not the same as a true landed cost. See how HS code, customs duty, freight and documentation affect China-to-India imports.

3 min readLCL Sourcing Team
Container ship carrying commercial cargo across ocean shipping routes

A CBM rate tells you space. It does not tell you the full import cost. We are asked this almost every day: “What is your CBM rate from China to India?” It is a fair question, but it is not enough to understand a commercial import. A formal landed cost can include the actual goods value, HS/CTH classification, applicable customs duties, freight, clearance-related charges, handling and delivery. At LCL Global Trading Group, we prefer to show the calculation rather than hide everything inside one number. ## Start with the HS code, not a shortcut multiplier Our landed-cost approach starts with the product and its HS/CTH classification. The applicable duty structure can then be checked, followed by freight and other logistics costs. The exact components depend on the product, origin, notifications and current law. This is also how the official Indian Customs systems are structured: the ICEGATE Trade Guide lets users search by tariff heading, description and country of origin, and displays applicable duties and policy information.

True Landed Cost Breakdown vs Space CBM Rate
True Landed Cost Breakdown vs Space CBM Rate

A simple commercial example

Assume, only for illustration, that the assessable value is ₹10,00,000 and the applicable BCD is 20%. BCD alone would be ₹2,00,000. Other applicable duties or taxes and the actual logistics cost may then need to be added. So if somebody offers an all-inclusive carrying or CBM number that appears lower than the statutory duty itself, the right response is not to accuse anybody. Just ask for the breakup: What value is being declared? Which HS code is being used? What duty is being paid? What exactly is included? ## We do not use under-invoicing as a business model Our approach is straightforward. We do not artificially reduce the commercial value simply to make the landed cost look cheaper. If we want to save a client money, we would rather work on factory price, supplier negotiation, consolidation, packing, shipment planning and the right freight method. ## Who we are built for We are best suited to businesses that want a repeatable China-to-India supply chain: clear costing, proper documentation, compliance-focused execution and one accountable team from sourcing to delivery. If the only requirement is the lowest possible informal CBM number, we may not be the right fit. If the requirement is to understand the numbers before committing money, that is exactly the conversation we prefer. > [!TIP] > **Action Step**: Planning a China order? Share the product, value or supplier PI with LCL Global Trading Group. We can review the sourcing and import route before you commit. ## Helpful Resources & Official Links - ICEGATE Import Trade Guide - ICEGATE Customs Duty Calculator - LCL Global Sourcing & Import Services

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