AI agents for business finance: what they can and can't do
What AI agents can do in bookkeeping, close, collections and compliance today, where a person must stay in charge, and how to judge a product.
The short answer
Landed cost is everything you pay to get imported goods into your store: the CIF value (goods, freight, insurance), customs duty at the rate for the HS code, a 7% surcharge on duty, CISS (1% of FOB), the ETLS levy (0.5% of CIF), VAT at 7.5% on the total, then port, clearing and haulage costs. In the worked example below, goods with a CIF value of ₦3.45 million land at about ₦5.07 million.
Importers who price from the supplier’s invoice alone lose money. The factory price is often well under three-quarters of what the goods really cost by the time they reach your shelf. Calculating landed cost properly, before you place the order, tells you whether the deal works at your selling price.
The building blocks
- FOB
- Free on board: the price of the goods loaded at the port of export.
- CIF
- Cost, insurance and freight: FOB plus sea or air freight plus insurance. Customs duty is calculated on CIF, converted to naira at the CBN rate at the time of assessment (DHL Nigeria, June 2026).
- HS code
- The international classification of your product. It sets the duty rate, and a wrong code can mean a higher rate or an inspection.
- Import duty
- A percentage of CIF set by the tariff for your HS code. The 20% used below is an example rate; check yours.
- Surcharge
- 7% of the import duty, not of CIF.
- CISS
- Comprehensive Import Supervision Scheme charge: 1% of FOB.
- ETLS
- ECOWAS Trade Liberalisation Scheme levy: 0.5% of CIF.
- VAT
- 7.5% of CIF plus duty, surcharge and levies.
These rates are as described by DHL Nigeria in June 2026. A Legit.ng report of August 2026 notes that some importers have been charged a 4% FOB levy in place of the 1% CISS, and that application has been inconsistent since 2025. Ask your licensed clearing agent which applies to your shipment before you order, and check the duty rate for your HS code on the current tariff.
A worked example
The customs part uses DHL’s own illustration; the port, clearing and haulage figures are examples only.
| Line | Basis | Amount (₦) |
|---|---|---|
| FOB value of goods | Supplier invoice | 3,000,000 |
| Freight | Shipping quote | 400,000 |
| Insurance | Policy | 50,000 |
| CIF | Sum of above | 3,450,000 |
| Import duty | 20% of CIF (example rate) | 690,000 |
| Surcharge | 7% of duty | 48,300 |
| CISS | 1% of FOB | 30,000 |
| ETLS | 0.5% of CIF | 17,250 |
| VAT | 7.5% of ₦4,235,550 | 317,666.25 |
| Customs total | 1,103,216.25 | |
| Terminal and shipping line charges | Example | 250,000 |
| Clearing agent fee | Example | 150,000 |
| Haulage to warehouse | Example | 120,000 |
| Landed cost | 5,073,216.25 |
The VAT base is CIF plus duty, surcharge, CISS and ETLS: ₦3,450,000 + ₦690,000 + ₦48,300 + ₦30,000 + ₦17,250 = ₦4,235,550. If the shipment is 100 units, each unit has landed at about ₦50,732, against a factory price of ₦30,000. The supplier price is under 60% of the landed cost here.
Costs people forget
- Demurrage and storage if the container sits at the port beyond the free days.
- Bank charges on the foreign payment and any difference between the rate you paid the supplier and the rate customs used.
- Inspection, examination and documentation charges on the clearing agent’s invoice; ask for an itemised quote.
- Breakage, shortages and goods that fail inspection.
- The cost of money tied up for weeks between paying the supplier and selling the goods.
A useful habit is to compare each landed cost sheet with what the shipment actually cost once it is in the warehouse. The gap between your estimate and the real figure, shipment after shipment, tells you how big your buffer needs to be and which lines you keep underestimating. Importers who track this for three or four shipments price with far more confidence.
What VAT and duty mean for your books
Under IAS 2, the cost of inventory includes import duties and other taxes that are not recoverable, plus transport and handling. Duty, surcharge, CISS and ETLS are therefore part of the stock cost. Import VAT is different: if your business is VAT-registered and can claim it as input VAT, it is a recoverable tax and sits outside stock cost. A small business with turnover up to ₦100 million (and fixed assets up to ₦250 million) is exempt from VAT registration under the 2025 tax law, as Forvis Mazars explains, so for many small importers the VAT is a real cost to include. Our companion guide on bookkeeping for an import business shows the entries.
Steps: building your landed cost sheet
- Get the HS code confirmed and the duty rate checked before you pay a deposit.
- Collect written quotes for freight, insurance, clearing, terminal charges and haulage.
- Calculate CIF and the customs lines at a cautious exchange rate, not the best one you have seen this month.
- Add a buffer for demurrage and delays.
- Divide by units to get landed cost per unit, then set your price. Our guide to pricing when costs keep rising covers the markup side.
Where Pryme fits
A Pryme Business Account holds USD, GBP and EUR alongside naira, so you can keep supplier funds in the currency you will pay in. Swap shows the rate first and the fee on its own line before you approve, which gives you the exact figure for your landed cost sheet.
Questions people ask
How is import duty calculated in Nigeria?
Duty is a percentage of the CIF value set by your product’s HS code, converted to naira at the CBN rate at assessment. A 7% surcharge applies to the duty, then CISS, ETLS and VAT are added.
Is VAT on imports calculated on CIF alone?
No. DHL Nigeria’s June 2026 guide says VAT at 7.5% is charged on CIF plus duty, surcharge and levies.
What is the difference between CISS and the 4% FOB levy?
CISS is 1% of FOB. Legit.ng reported in August 2026 that some importers face a 4% FOB levy instead and that application has been inconsistent since 2025. Ask your clearing agent.
What is a good markup on imported goods?
There is no standard. Work out landed cost per unit first, then add your overheads and margin, and test the price against what buyers will pay.
Sources
- DHL Nigeria: How to calculate import duties in Nigeria · accessed Oct 2026
- Legit.ng: Full breakdown of duties, taxes and levies to import cars in 2026 · accessed Oct 2026
- IFRS Foundation: IAS 2 Inventories · accessed Oct 2026
- Forvis Mazars: 2025 NTA VAT key business changes · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.