ELC (Estimated Landed Cost)

Estimated Landed Cost is an estimated total cost of a product once it has arrived at the buyer?s door. This list of components that are needed to determine landed costs include the original cost of the item, all brokerage and logistics fees, complete shipping costs, customs duties, tariffs, taxes, insurance, currency conversion, crating costs, and handling fees. Not all of these components are present in every shipment, but included items must be considered part of the estimated landed cost. This is to predict the total landed cost of materials so as to avoid taking risk of losing money due to hidden costs incurred.