The above calculator can be used irrespective of mode of transport, for general purposes. However, for particulars requirements with regard to mode as well as chargeable weight, volume and freight rates, the additional calculators can be developed as per the following guidelines:
A. BY AIR WEIGHT/VOLUME CONVERSIONS
(i) CALCULATING VOLUME & VOLUMETRIC WEIGHT:
For by Air shipments, volumetric weight of the shipment can be calculated as per under:
Measure maximum Length, Width, Height of a package/parcel/carton/box in Inches or in Cms.
Multiply all three figures i.e. L x W x H with each other to get the result figure.
If there are more than one packages of the same dimensions, you can further mutiply the result figure with those no. of packages e.g.
No.1 Package has = L x W x H= 50 x 25 x 20 inches =25000 cu inches
No.2 Package also has the same above dimensions. So you can multiply 25000 with 2, (25000 x 2) giving you result figure of 50,000 cu inches.
To get the volumetric weight divide the above result with
366 if measurement taken in inches and with 6000 if
measurement taken in centimeters. Considering the above
figure, the result would be as under:
50,000 / 366 = 136.61 kgs or rounded as 137 kgs.
If the same dimensions are considered as in centimeters, the
volumetric weight could be calculated as under:
50,000 / 6000 = 8.33 kgs or rounded as 9 kgs.
(ii) DETERMINATION OF CHARGEABLE WEIGHT/VOLUME:
To find out the Chargeable Weight of the Shipment in Airfreight mode, there�s need of comparison between the two figures of Gross Weight and Volumetric Weight. Supposing we have Gross Weight of Shipment equal to 100 kgs and Volumetric Weight of Shipment equal to 137 kgs (as derived from volumetric weight calculation above in inches); then the Chargeable Weight of Shipment would be which one is higher figure i.e. in this case 137 kgs is higher than 100 kgs.
| Gross Weight | 100 kgs |
| Volumetric Weight | 137 kgs |
| Chargeable Weight | 137 kgs |
Airline will, therefore, consider 137 kgs to charge their corresponding freight rate on this very size of shipment. On the other hand, if Gross Weight had been the same 100 kgs, and Volumetric Weight as derived from centimeters calculation above is only 9 kgs, then the Airline would have considered 100kgs as Chargeable Weight, being the higher figure than Gross Weight of 9kgs.
| Gross Weight | 100 kgs |
| Volumetric Weight | 9 kgs |
| Chargeable Weight | 100 kgs |
(i) CALCULATING VOLUME:
Unlike air mode of transport, in by sea there�s no
need to calculate volumetric weight of a shipment. However,
the volume of a shipment can be calculated in the same
manner as in Air i.e. all three dimensions of a package (L x
W x H) are multiplied with each other . The most common unit
of volume considered by shipping lines is cubic meters �CBM-,
which is based for charging freight rate particularly in
Less-than Container Load-LCL- shipments.
For convenience in calculating volume in Cubic Meters/CBM
volume, shippers should measure their package's in �Metres�
or preferably in smaller unit �Centimeters�.
If centimeters are used to measure, then the result would
come in Cubic centimeters, which then can be converted into
Cubic Meters by dividing with one million figure �1,000,000-
e.g.
If volume = 10,000,000 cubic centimeters,
Then divide it by one million to get cubic meters
i.e. 10,000,000 / 1,000,000 = 10 cbm
(ii) DETERMINATION OF CHARGEABLE WEIGHT/VOLUME:
Similar to Air, there are two considerations in determining
�chargeable factor� in by Sea mode. However, this exercise
is limited to only LCL shipments, in which rates charge
depend upon either Gross Weight (in MT) or Volume (in CBM)
of the shipment and whichever is higher is based to
calculate Freight :
For Example:
If Gross Weight of a shipment = 2.5 M.Tonnes /2500
kgs [1 MT = 1000KGS]
And Volume of a shipment = 5.0 CBM
Then the Freight will be calculated upon volume i.e. 5.0 CBM,
as being the higher figure.
On contrary,
If Gross Weight of a shipment = 5.0 M.Tonnes /5000
kgs [1 MT = 1000KGS]
And Volume of a shipment = 2.5 CBM
Then the Freight will be calculated upon G.weight i.e. 5.0
MT, as being the higher figure.
The higher unit either is it �Gross Weight� or �Volume� is also termed as, �Revenue Ton-RT� in the terminology of Sea freight.
Application & User Benefits:
The Landed Cost Calculation of the goods can be applied both
upon Estimated Costing as well as Actual Costing purposes.
If an import transaction is in the planning stage, the
importer can input estimated figures about the value of
goods to get an overall estimated landed cost figure. On the
other hand, if goods have arrived at Pakistan and are
already under the process of customs clearance, the amount
of duty/taxes can be calculated based upon Assessed Value of
Goods (as advised by the c/agent, once GD is
appraised/finalized). Thus an importer can countercheck
duties figure provided by his c/agent. Ultimately, the
actual landed cost can be calculated, as an imported goods
reaches its final place and all related figures become
available to importer on actual basis.
| Value of Imported Goods known as, fob Cost I : | |
| International Transportation charges known as, Freight (F) : | |
|
Marine Insurance known as, Insurance (I) : (generally assumed as 1% of C&F value for calculation) |
|
|
Landed Cost Factor : (generally added as 1% +1% of CIF value for calculation) |
|
| 1- TOTAL VAUE(say in foreign currency, US$) | xxxx |
| 1- In Equivalent Pak Rupees | xxxx |
| Calculation of amount of duties/taxes as per duty structure on corresponding PCT Head of Imported goods : Supposing�. | |
| Customs Duty @ 5% of CIF value of goods | |
| Sales Tax @ 15% on customs duty paid value of goods | |
| Income Tax @ 6% on sales tax paid value of goods | |
| 2- TOTAL DUTY/TAXES | xxxx |
| Customs clearing, handling, & receipted nature at port | |
| Local transportation/delivery expenses | |
| 3- TOTAL OTHER EXPENSES | xxxx |
| GRAND TOTAL (1+2+3) �ESTIMATED LANDED COST | xxxx |
Guidelines about Calculator Design: {Example-Airfreight Shipment with supposed Invoice value of goods}
(1) Fob Value of Imported Goods quoted by Exporter (
C ) , say : 20,000
Note: If decimals used in fig., round up to nearer
value.
(2) Air Freight (F)
say
: 2,000
Note: In case of Seafreight, usually a
percentage varying from 5% to 8% of the fob value of the
goods is added, to get C&F value. In this case of
airfreight, supposing it is 10%.
(3) Add (1)+(2) above to get the C&F value of goods, as : 22,000
(4) Calculate 1% upon above (3) to get Marine Insurance (I) amt : 220
(5) Add (3)+(4) to get CIF Value of goods
: 22,220
Note: If the user has with him actual CIF or
customs assessed value, he can ignore (1) to (4) steps and
use the Input box (5) above to take start.
(6) Landed Cost Factor (sum-up (i) 1% of (5) above +
(ii) 1% of a) : 447
i.e. (i)22220 x 1% =222.2 (ii) 22442.2 x 1% =224.42
and adding these two figures 222.20+224.42=446.62 or rounded
as 447
(7)TOTAL VALUE (adding (5) & (6) above
: 22,667 usd
(Use calculator �+�function after �%�calculation to get
the result)
(8)Apply exchange rates to get equivalent Pak Rs.{1usd=60} : 13,60,020pkr
Note:
-The currency exchange rate table can be placed here to be
referred to or to automatically convert foreign currency
into local currency.
The figure obtained is onward based to calculate duty/taxes.
-For Calculating amount of duties/taxes as per duty
structure on corresponding PCT Head of Imported goods, input
boxes can be inserted here through interlink with original
place at port.
-This duty structure information thus will be available at
two places of the port and would itself come as on-line
Resource from �Customs/PACCS� website EDI link.
Supposing Duty Structure found on this PCT Head: C/D5%+S/T15%+I/T6%
(9) Calculate Customs Duty { fig. at above (8) i.e.1360202 x 5% } = 68,001
(10) Get amount C/Duty paid value { add above fig at (8) + (9) } =14,28,021
(11) Calculate Sales Tax {fig at above (10) i.e. 1428021 x 15% } = 2,14,203
(12) Get amount Sales Tax paid value { add fig at (10) & (11) } =16,42,224
(13) Calculate Income Tax {fig. at above (12) i.e. 1642224 x 6% } = 98,533
(14) Add up above amounts at (9), (10), (11) to get total duties =380,737
(15) Calculate Estimated amount of other
expenses as 5% of the total
duties fig. in (12) above i.e. 380737 x
5% = 19,037
(16) Add up Boxes at (8) & (12) & (13) to
get Estimated landed cost= 17,59,794
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Volume CalculatorBy input the volume, this tool can find the corresponding volume weight based on the commonly-used volume factors. please enter the No. of Package and either the Volume of each Package or Dimension of each Package.
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