What is landed cost, and how do you calculate it for Egypt?
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Landed cost is the total cost of getting a product into your buyer's country and ready to sell: the product price plus freight, insurance, customs duty, import taxes and fees. In Egypt duty is charged on the CIF value and VAT on CIF plus duty, so USD 20,000 CIF of syringes from China carries about USD 1,000 duty (5%) and USD 2,940 VAT (14%) before fees, while the same goods from Italy with a EUR.1 carry no duty and USD 2,800 VAT. Most of the VAT is recoverable for a VAT-registered importer; the duty is not.
Which Egyptian rules drive landed cost?
| Fact | Value | Source | As of |
|---|---|---|---|
| Duty base | CIF value, converted at the Central Bank rate on the declaration date | kadmar.com | 2020 |
| Syringes (HS 9018.31), MFN duty | 5% (official tariff, national line 9018.31.00.00) | nafeza.gov.eg | |
| Gloves (HS 4015.12), MFN duty | 10% (official tariff, national line 4015.12.00.00) | nafeza.gov.eg | |
| FTA origins | 0% with valid proof of origin for EU, EFTA, UK and Turkish goods (shown on the official medical tariff lines); MERCOSUR, AfCFTA and Serbia reductions vary by line; COMESA, GAFTA and Agadir are not shown on the medical lines checked | nafeza.gov.eg | |
| VAT | 14% on the duty-paid value; 5% for medical devices used to produce goods or provide services since 29 July 2026 | vatupdate.com | |
| Refund window for unsold stock | Duty and taxes refunded only if goods lacking similar local products are re-exported in kind within 1 year | kadmar.com | 2020 |
| Search demand we measured | 'landed cost' 4,400 searches a month; 'landed cost calculator' 1,000 a month, worldwide (Google Keyword Planner, UltraTeb measurement) | ads.google.com |
Duty rates from Egypt's official tariff (NAFEZA), read 2026-09-25; your customs broker confirms the 10-digit line. Last verified 2026-09-25.
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What is the landed-cost formula, step by step?
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Product cost
The price on your invoice (EXW or FOB).
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Add freight and insurance = CIF
Everything up to the port of arrival. Egypt's customs value is CIF.
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Add customs duty
CIF × the duty rate of your HS line (0% with FTA origin proof).
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Add import VAT
(CIF + duty) × the VAT rate — 14%, or 5% for qualifying devices.
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Add fees
EDA import approval, clearance and handling, the bank's Form 4 fee, any lab testing, inland transport and storage.
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That total is your cash out
What must be paid before the goods can be sold.
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Subtract recoverable VAT
For a VAT-registered importer, import VAT is credited against VAT on sales. The result is the net landed cost.
What does a worked example look like?
| Line | Syringes from China | Syringes from Italy (EUR.1) | Exam gloves from China |
|---|---|---|---|
| CIF value | USD 20,000 | USD 20,000 | USD 20,000 |
| Duty rate (official tariff) | 5% | 0% | 10% |
| Customs duty | USD 1,000 | USD 0 | USD 2,000 |
| VAT base (CIF + duty) | USD 21,000 | USD 20,000 | USD 22,000 |
| VAT at 14% | USD 2,940 | USD 2,800 | USD 3,080 |
| Fees (illustrative assumption) | USD 1,000 | USD 800 | USD 1,200 + annual lab test |
| Cash out before sale | USD 24,940 | USD 23,600 | USD 26,280 |
| Recoverable input VAT | USD 2,940 | USD 2,800 | USD 3,080 |
| Net landed cost | USD 22,000 | USD 20,800 | USD 23,200 |
Which costs does each Incoterm leave to the buyer?
| Incoterm | Seller pays up to | Buyer adds to reach landed cost |
|---|---|---|
| EXW | Goods ready at the factory | Export clearance, freight, insurance, duty, VAT, fees |
| FOB | Goods loaded on the vessel at origin | Freight, insurance, duty, VAT, fees |
| CIF | Freight and insurance to the destination port | Duty, VAT, fees |
| DDP | Delivered with duty paid | Nothing — the seller carries it all |
Why is landed cost not the selling price?
Landed cost is the floor. The price a hospital or lab pays must also cover selling, storage, credit and risk. In Egypt public buyers can pay slowly — suppliers' unpaid bills reached EGP 43 billion in August 2025 (Egypt Independent) — and tender prices are fixed in Egyptian pounds.
Which landed-cost mistakes are most common?
- Charging VAT on CIF only, instead of on CIF plus duty.
- Using the wrong exchange rate: Egyptian customs converts at the Central Bank rate on the declaration date.
- Forgetting that duty on unsold stock is refunded only if the goods are re-exported within 1 year.
- Leaving out waiting time and storage while EDA samples are tested.
“Landed cost is not the price — it is the floor. Everything a hospital pays above it has to cover selling, credit and risk.” — Mohamed Dabees, founder, UltraTeb
UltraTeb Market Access is a zero-upfront-fee route into Egypt's medical market: UltraTeb registers, imports, markets, stores and sells your product, shares the risk, and pays you when it sells.
How does UltraTeb Market Access take landed cost off your books?
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We fund the landing
Duty, VAT, clearance and storage are paid by us, not by you.
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Real numbers in the free market study
A landed-cost breakdown for your product and a realistic Egyptian price.
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FTA origin used
We tell you which origin document removes duty.
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Paid when it sells
You receive the agreed price per unit sold, on a monthly statement.
Frequently asked questions
What is landed cost?
The full cost of getting goods into the destination country and ready to sell: product price, freight, insurance, customs duty, import taxes and fees.
What is the landed-cost formula?
Product cost + freight + insurance (= CIF) + duty + import VAT + fees. For a VAT-registered importer, subtract the recoverable import VAT to get the net landed cost.
Is VAT part of landed cost?
It is part of the cash you pay at import. For a VAT-registered importer it is recovered against VAT on sales, so it is mostly a timing cost.
What duty rate should I use for Egypt?
0% for EU, EFTA, UK and Turkish goods with proof of origin; otherwise the MFN rate of your 10-digit line in Egypt's official tariff — for example 5% on syringes and reagent kits and 10% on gloves and lab glassware. Confirm with a customs broker.
Why is VAT charged on duty as well?
Egypt charges import VAT on the duty-paid value, so duty increases the VAT base.
Which exchange rate does Egyptian customs use?
The Central Bank of Egypt rate on the date of the customs declaration (Customs Law 207/2020, Art. 16).
Who pays landed cost on the UltraTeb Market Access model?
We do. We pay duty, VAT, clearance and storage and are repaid from sales; you're paid when your goods sell.
Your landed cost, paid by us.
Zero upfront fees. We pay duty and VAT and fund the launch; you're paid when we sell.