Shipping from China sounds simple. But the fees? Not so much. Many business owners get surprised when their “cheap quote” turns into a nightmare of extra costs.
You must count all costs, not just the shipping quote, to know your true import expenses. Our calculator helps you get a full picture.
What are the main components of international shipping costs?
You get a low quote. Sounds great. But suddenly, the invoice grows bigger. Why?
International shipping costs include many parts: freight, customs, local delivery, and more. Ignoring any of them means underestimating your real cost.
The breakdown of shipping fees
Let’s break down what actually makes up your international shipping cost:
| Component | Description |
|---|---|
| Freight Cost | The price to move goods from China to the Philippines, by sea or air |
| Export Handling | Origin charges like export declaration, loading fees |
| Import Duties & Taxes | Philippines customs duties, VAT, and possible excise |
| Customs Clearance | Cost for documentation and releasing cargo from customs |
| Local Delivery | Fees to bring cargo from port to your warehouse or address |
| Warehousing (if needed) | Charges if goods are stored before delivery |
| DDP Service Fee | If using DDP, this includes all-in-one charges up to final destination |
These pieces vary based on volume, weight, product category, and your chosen Incoterms (FOB, EXW, DDP). I always recommend clients to go for DDP when they want a full-cost picture upfront.
How do I calculate the total landed cost for a shipment?
A client once asked me, “Why does your quote look higher than others?” I showed them the math. My quote included everything. Theirs didn’t.
Your total landed cost includes the product price, shipping fees, taxes, and all local delivery costs. That’s what really matters.
What’s in a landed cost?
Here’s a basic formula to help you understand:
If you only look at the freight, you’re missing half the picture. I’ve had clients who thought they got a “$60/CBM” deal, only to end up paying hundreds more in customs and last-mile delivery.
| Example | Amount (USD) |
|---|---|
| Product Cost | $2,000 |
| Sea Freight (DDP) | $500 |
| Duties and Taxes | $300 |
| Local Delivery | Included in DDP |
| Total Landed Cost | $2,800 |
Compare that with a “cheap freight” quote that didn’t include taxes and customs:
| Example | Amount (USD) |
|---|---|
| Product Cost | $2,000 |
| Freight (port to port) | $350 |
| Customs Broker Fees | $150 |
| Duties and Taxes | $300 |
| Local Trucking | $200 |
| Total Landed Cost | $3,000 |
That’s why I always help my clients use the calculator I provide to estimate real costs, not just guesswork.
What factors affect the DDP shipping fees?
People ask me, “Why is my DDP quote higher than my friend’s?” The answer usually comes down to product type, size, and sensitivity.
DDP shipping fees depend on product category (ordinary, sensitive, special), cargo size, and weight. Customs classification determines the risk—and the rate.
Understanding the categories and cost logic
Philippine customs classify goods based on how “risky” they are to import. Our DDP fee structure follows this same logic:
| Category | Examples | Risk Level | Rate Level |
|---|---|---|---|
| Ordinary Goods | Towels, unbranded clothes, plastics | Low | Lowest Rate |
| Sensitive Goods | Electronics, batteries, speakers | Medium | Medium Rate |
| Special Goods | Powders, chemicals, liquids | High | Highest Rate |
For example:
- A shipment of towels costs much less per CBM than the same size shipment of Bluetooth speakers.
- A box of chemical powder, even if small, costs more because of the inspection and paperwork involved.
Besides type, we also look at size and weight. Bigger or heavier items naturally cost more. The key is accurate declaration. Mislabeling a speaker as a “toy” might save money upfront, but it risks customs trouble later.
I guide every client on this during quote preparation, so they avoid costly corrections later.
You plan everything. Then your goods are stuck in customs. Days pass. Fees rise. This is more common than you think.
Incorrect paperwork, random customs checks, or miscommunication can cause unexpected fees like inspection charges, document correction, or storage penalties.
Let me share a personal experience. One of my clients shipped some food processing tools. But the declared HS code didn’t match the product. Customs flagged it for inspection.
We had to pay for:
- Inspection Fee: PHP 3,000
- Amendment Fee: PHP 1,500
- Storage Fee (3 days): PHP 2,000
All of that could have been avoided with accurate declarations.
Here are common hidden charges you should check:
| Hidden Fee Type | Reason |
|---|---|
| Customs Inspection Fee | Random checks or product mismatch |
| Amendment Fee | Mistakes in declaration, wrong HS code |
| Demurrage/Storage Fees | Delayed pickup at port |
| Broker Rush Fee | Last-minute clearances |
| Local Delivery Surcharge | Extra fees for remote areas or poor access roads |
Always double-check your documents. Or better, use a DDP provider like us, so you don’t face these alone.
Conclusion
Always count the total landed cost—not just shipping rates—so you can import with peace of mind and zero surprises.
