Build a Landed-Cost Bridge From an EXW Garment Quote
Build a Landed-Cost Bridge From an EXW Garment Quote. Sourcing, production and quality teams
Written for sourcing, production and quality teams, this working brief turns the key questions around EXW cost, Incoterm, freight, duty, tax, reject rate and landed-cost assumptions into a dated brief, a comparable quotation and a controlled next step.
Separate unit manufacturing cost from landed cost
Start with the EXW unit price and add every cost needed to reach the buyer’s door: packaging, testing, inland transport, export handling, freight, duty, tax, insurance, destination fees and reject allowance.
Named Incoterm and responsibility
Name the Incoterm and the responsible party for each step. A quote that says FOB, CIF, DAP or EXW without matching the actual scope is not a landed-cost comparison.
Testing, pack, freight and tax inputs
List testing, packing, carton dimensions, freight mode and tax assumptions beside the unit price. These inputs can change the landed cost more than a small manufacturing price difference.
Currency, reject and buffer scenarios
Model currency movement, reject rate, payment fees and a reasonable buffer. Show the base case and the downside case rather than a single number.
Compare on identical assumptions
Compare suppliers only on identical assumptions. If one quote includes packaging or testing and another excludes it, the lower unit price may not be the lower landed cost.
Decision register
| Stage | What to record | Minimum evidence | Dependency |
|---|---|---|---|
| Separate unit manufacturing cost from landed cost | Decision, reference and version | approved brief and scope note | development parameters and approvals, commercial terms and packaging, market responsibility and local adviser input |
| Named Incoterm and responsibility | Decision, reference and version | dated specification, BOM or official-source note | development parameters and approvals, commercial terms and packaging, market responsibility and local adviser input |
| Testing, pack, freight and tax inputs | Decision, reference and version | sample, test or registration record for the named reference | development parameters and approvals, commercial terms and packaging, market responsibility and local adviser input |
| Currency, reject and buffer scenarios | Decision, reference and version | named approval, exception and change log | development parameters and approvals, commercial terms and packaging, market responsibility and local adviser input |
| Compare on identical assumptions | Decision, reference and version | RFQ or production-release pack for the next stage | development parameters and approvals, commercial terms and packaging, market responsibility and local adviser input |
Project file to assemble
- Buyer focus: Sourcing, production and quality teams.
- Page scope: EXW cost, Incoterm, freight, duty, tax, reject rate and landed-cost assumptions.
- Evidence to assemble: for EXW cost, Incoterm, freight, duty, tax, reject rate and landed-cost assumptions, approved brief and scope note; dated specification, BOM or official-source note; sample, test or registration record for the named reference; named approval, exception and change log; RFQ or production-release pack for the next stage.
- External dependencies: development parameters and approvals, commercial terms and packaging, market responsibility and local adviser input.
- Next step: send a dated brief covering EXW cost, Incoterm, freight, duty, tax, reject rate and landed-cost assumptions, the destination market and available documents for a feasibility review.
Buyer questions
What must “Separate unit manufacturing cost from landed cost” record?
For EXW cost, Incoterm, freight, duty, tax, reject rate and landed-cost assumptions: Record the reference and version, the decision, the owner, the date, the evidence accepted and the next milestone. Link it to the approved sample, BOM or artwork rather than a chat thread.
How should “Named Incoterm and responsibility” be handled when information is missing?
For EXW cost, Incoterm, freight, duty, tax, reject rate and landed-cost assumptions: Keep the item open and state what evidence is missing. Do not let a provisional answer become an approved production instruction without a new version.
What changes require a new release?
For EXW cost, Incoterm, freight, duty, tax, reject rate and landed-cost assumptions: A change to material, supplier, BOM, measurement, colour, label, carton, test result or delivery term should trigger a new version and a defined cut-off.
Related routes
Period underwear quote comparison Contact
Editorial review: 8 November 2026. This page describes a procurement method and does not replace legal, tax or regulatory advice.
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