Most restaurant owners think customs duties are their only import expense – that's wrong. You're actually paying 15-25% more than the quoted price once freight forwarding, insurance, and VAT get added. These hidden costs destroy your profit margins if you don't factor them into your menu pricing.
What exactly are import costs?
Import costs are all extra expenses you pay beyond your supplier's quoted price. They're not just customs duties – there's much more:
- Customs duties (tariff depends on product type)
- VAT on imports (usually 9% for food)
- Customs administration fees
- Transport insurance
- Freight forwarding costs
- Storage in customs warehouse
These expenses can balloon to 15-25% of your purchase price. Skip them in your calculations and your food cost percentages become meaningless.
⚠️ Note:
Many suppliers quote prices "ex works" - that means WITHOUT import costs. Those come on top.
Calculate your actual purchase price
Your real purchase price has three components:
Actual purchase price = Product price + Import costs + Transport costs
💡 Example:
You import truffles from Italy for €800 per kilo:
- Product price: €800/kg
- Customs duties (5%): €40/kg
- VAT on import (9%): €72/kg
- Freight forwarding costs: €15/kg
- Insurance: €8/kg
Actual purchase price: €935/kg
That's 17% more than the original price! Calculate food cost with €800 instead of €935, and you'll lose money on every single dish.
How do you split import costs across different products?
Multiple products in one shipment? You need to distribute costs fairly. Base it on weight or value:
Distribution based on weight:
Import costs per kg = Total import costs / Total shipment weight
💡 Distribution example:
Shipment of 100kg with €1,500 import costs:
- 50kg olive oil at €12/kg
- 30kg parmesan at €35/kg
- 20kg balsamic at €25/kg
Import costs per kg: €1,500 / 100kg = €15/kg
New prices: olive oil €27/kg, parmesan €50/kg, balsamic €40/kg
What documents do you need?
For accurate calculations, gather these documents from your freight forwarder or customs agent:
- Supplier invoice: original product price
- Customs declaration: official customs duties
- VAT statement: VAT paid on import
- Freight forwarding invoice: all handling costs
- Transport invoice: shipping to your location
⚠️ Note:
Keep all import documents for at least 7 years. The tax authority can request these to verify your VAT deduction.
How often should you recalculate import costs?
Import costs shift regularly due to:
- Exchange rate fluctuations (euro vs. other currencies)
- Changing customs tariffs
- Fuel surcharges on transport
- Seasonal freight forwarding costs
Review every 3 months minimum to ensure your import costs stay accurate. Major exchange rate swings (>5%) demand monthly checks instead.
💡 Practical tip:
Create a spreadsheet with all import costs per supplier. Update it every time you receive a new shipment. This way you can spot trends and negotiate better.
Impact on your food cost and menu price
Import costs directly impact your food cost percentage. Something most kitchen managers discover too late: if your actual purchase price jumps 15% due to import costs, you must factor this in:
New minimum selling price = (Product price + Import costs) / Desired food cost %
💡 Markup example:
Dish with imported truffles, desired food cost 30%:
- Ingredients excl. truffles: €8.00
- Truffles (5g at €935/kg): €4.68
- Total ingredient costs: €12.68
Minimum selling price: €12.68 / 0.30 = €42.27 excl. VAT
Menu price: €42.27 × 1.09 = €46.07
How do you calculate import costs in your purchase price? (step by step)
Gather all import documents
Ask your freight forwarder for a detailed cost breakdown with all customs duties, VAT, freight forwarding and transport costs. Make sure you have the original supplier invoice and all customs documents.
Add up all extra costs
Sum all costs on top of the product price: customs duties + VAT on import + freight forwarding costs + transport + insurance. These are your total import costs per shipment.
Divide by total weight
Divide the total import costs by the total weight of your shipment. This gives you the import costs per kilogram that you need to add to each product price.
Calculate your new actual purchase price
Add the import costs per kg to each product price. This is your actual purchase price that you need to use for your food cost calculation and menu price.
Update your cost prices and recipes
Adjust all recipes with the new actual purchase prices. Check whether your menu price still matches your desired food cost percentage.
✨ Pro tip
Track your import cost percentage over 6 months to spot seasonal patterns. Many freight forwarders charge 20-30% more during peak seasons – factor this into your quarterly menu pricing reviews.
Calculate this yourself?
In the KitchenNmbrs app you can do this in just a few clicks. 7 days free, no credit card.
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Frequently asked questions
Do I need to include import costs if my supplier says 'all-inclusive'?
Always demand a detailed invoice breakdown. 'All-inclusive' usually means import costs are already baked into the price, but you need exact figures. Otherwise you can't properly compare suppliers or verify you're getting a fair deal.
How do I calculate import costs with fluctuating exchange rates?
Use the exchange rate from payment day, not order day. Check monthly whether major exchange rate swings (>5%) affect your cost price and adjust menu pricing accordingly.
Can I claim back VAT on import costs?
Yes, VAT paid on imports gets reclaimed through your VAT return as a business owner. Keep all customs documents as proof. Import costs themselves (customs duties, freight forwarding) can't be reclaimed though.
What if my freight forwarder charges surprise costs after delivery?
Negotiate upfront cost estimates and demand 'all-in' pricing including every import expense. This prevents nasty surprises and lets you calculate menu prices properly from the start.
📚 Sources consulted
- EU Verordening 852/2004 — Levensmiddelenhygiëne (2004) — Official source
- EU Verordening 853/2004 — Hygiënevoorschriften voor levensmiddelen van dierlijke oorsprong (2004) — Official source
- EU Verordening 1169/2011 — Voedselinformatie aan consumenten (2011) — Official source
- NVWA — Hygiënecode voor de horeca (2024) — Official source
- NVWA — Allergenen in voedsel (2024) — Official source
- Codex Alimentarius — International Food Standards (2024) — Official source
- FSA — Safer food, better business (HACCP) (2024) — Official source
- BVL — Lebensmittelhygiene (HACCP) (2024) — Official source
- Warenwetbesluit Bereiding en behandeling van levensmiddelen (2024) — Official source
- WHO — Foodborne diseases estimates (2024) — Official source
Food Standards Agency (FSA) — https://www.food.gov.uk
The HACCP standards shown in this application are for informational purposes only. KitchenNmbrs does not guarantee that displayed values are current or complete. Always consult the FSA or your local authority for the latest regulations.
Written by
Jeffrey Smit
Founder & CEO of KitchenNmbrs
Jeffrey Smit built KitchenNmbrs from 8 years of hands-on experience as kitchen manager at 1NUL8 Group in Rotterdam. His mission: give every restaurant owner control over food cost.
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