The cost of importing office furniture is often quoted as the factory FOB price alone — yet the total cash needed until the goods stand on your office floor can be 15–30% higher. For importers, distributors and fit-out contractors, mastering the landed cost calculation separates profitable projects from leaking ones. This guide breaks down every cost component with a worked 40HQ mixed-container example.
What is landed cost and why it matters
Landed cost is the total cost of moving goods from the seller's factory to your warehouse or office: product price, ocean freight, insurance, import duty, import taxes, port charges, trucking and on-site assembly. Without it, wholesale pricing becomes guesswork — and project margins erode through hidden costs such as demurrage and port storage.
7 cost components for office furniture imports from China
1. Factory FOB price
The value of the goods up to the Shenzhen or Guangzhou terminal. For office furniture, FOB price depends on size, finish and order volume. A factory that issues the ACFTA Form E gives a double advantage: factory pricing plus preferential duty treatment.
2. Ocean freight (LCL vs FCL)
Small shipments move as LCL, priced per cubic metre; once volume passes roughly 15 m³, a full container (FCL) is almost always cheaper per unit. See our LCL vs FCL breakdown.
3. Cargo insurance
Typically 0.2–0.5% of CIF value. Cheap, but essential — one container damaged in bad weather can wipe out a year's margin.
4. Import duty & ACFTA Form E
Furniture (HS 9403) carries a standard import duty; with a valid, consistent Form E the ACFTA preferential rate drops to 0%. Make sure product names, quantities and ports on the Form E exactly match the other documents — even small mismatches void the preference.
5. Import VAT (PPN) 11%
VAT is calculated on the import value (CIF + duty). Registered PKP importers can credit this VAT as input tax — keep the documents tidy.
6. Income tax article 22 (PPh 22)
Generally 2.5% of import value for importers with a tax number (NPWP); also creditable when reported.
7. Port, trucking and installation costs
THC, DO, storage if container pick-up is late, trucking of the 40ft container from port to warehouse, unloading, and knock-down assembly on site. Outside Java, add inter-island shipping.
Worked example: a mixed 40HQ container
The illustration below assumes a 40HQ mixed container of executive desks, workstations and cabinets with a FOB value of USD 18,000 (illustrative figures; actual rates vary by route, exchange rate and forwarder):
| Component | Basis | USD |
|---|---|---|
| FOB price | — | 18,000 |
| Freight Shenzhen–Jakarta | 40HQ | 1,200 |
| Insurance | ~0.5% of CIF | 110 |
| CIF value | FOB+freight+insurance | 19,310 |
| Import duty (Form E) | 0% | 0 |
| Import VAT | 11% × CIF | 2,124 |
| PPh 22 | 2.5% × CIF | 483 |
| THC, DO, documents | package | 400 |
| Trucking + unloading | Jakarta area | 600 |
| Total landed | ~22,917 |
That is roughly a 27% add-on over FOB — and most of it (VAT + PPh 22) is creditable tax. Pair this with the container loading guide to work out your per-desk landed cost.
5 ways to cut import costs without cutting quality
- Mixed containers. Combine desks, workstations, cabinets and meeting tables from one factory in a single container — freight per unit drops sharply.
- Maximise Form E. Choose suppliers who issue Form E and keep documents consistent.
- Knock-down packing. KD furniture loads 30–50% more units per FCL than assembled goods.
- Supplier consolidation. One container from one factory = one document set, fewer middleman fees.
- Plan container release. Avoid demurrage and storage by preparing documents before vessel arrival.
Common costing mistakes
The three mistakes we see most in new importers: (1) forgetting VAT and income tax so retail prices come out too low; (2) budgeting LCL freight when the volume already warrants FCL; and (3) ignoring trucking and on-site assembly. Cost everything from day one so project margins stay safe.
One more line item that is rarely budgeted: exchange rates. Purchases from China are usually in USD while sales are in Rupiah; a 3–5% currency swing across the project cycle can change your margin. Many importers lock the rate with a forward contract or build a currency buffer into their selling price.
Quick FAQ
How much on top of FOB should I budget? Typically 18–30% depending on route, container type and the importer's tax status.
Is furniture duty really 0%? With a valid Form E, the ACFTA preferential rate for most HS 9403 furniture is 0%; verify the HS code with your forwarder.
When should I switch from LCL to FCL? Around 13–15 m³; above that, FCL is almost always cheaper.
Does the FOB price include installation? No. On-site knock-down assembly is quoted separately depending on access and building floors; ask for an estimate with your quotation.
Need a landed-cost estimate for your procurement plan? Send your product list and target budget via the contact page, or explore 381 models in the BG Office Furniture catalogue — FOB/CIF quotations with landed-cost estimates within one working day.