To analyze the commercial viability of importing versus locally manufacturing drywall screws in India, a meticulous landed-cost calculation model is required. This analysis incorporates the Basic Value of Rs. 129 per kg as stipulated by the Government of India Notification for import restrictions on screws. Furthermore, it details the specific components of EXW (Ex-Works) Charges, explicitly defined here as the costs incurred for transportation from the origin factory to the port and the execution of export customs clearance.
Landed Cost Model (Per Kilogram Baseline)
| Cost Component Description | Calculation Formula / Base | Rate Applied | Cost (INR / Kg) |
| Basic Value (As per GoI Notification) | Government-notified minimum value for import restrictions | Fixed Benchmark | 129.00 |
| EXW Charges (Origin Transport & Customs) | Transportation from factory to port, export custom clearance | Estimated Origin Cost | 4.50 |
| Ocean Freight & Logistics Charges | Sea freight to Nhava Sheva (JNPT) | FCL Container allocation | 12.00 |
| Marine Transit Insurance | CIF insurance premium on value | ~0.15% of value | 0.22 |
| Assessable Value (For Customs Duty) | Basic Value + EXW Charges + Freight + Insurance | CIF Equivalent | 145.72 |
| Basic Customs Duty (BCD) | Calculated directly on Assessable Value | 10.00% | 14.57 |
| Social Welfare Surcharge (SWS) | Calculated directly on the BCD value | 10.00% of BCD | 1.46 |
| Integrated GST (IGST) | Levied on (Assessable Value + BCD + SWS) | 18.00% | 29.12 |
| Destination Custom Clearance & CHA Fees | Port handling, documentation, agent commissions in India | Per-consignment split | 2.50 |
| Inland Local Transportation | JNPT Port to regional warehouse (e.g., Latur) | Flat freight rate | 4.50 |
| Total Landed Cost Outlay | Sum of all applicable duties, taxes, and logistical charges | Cumulative Sum | 197.87 |
Note: If the IGST of Rs. 29.12 / kg is claimed as Input Tax Credit (ITC) by the manufacturing or trading entity, the net effective landed cost is reduced proportionally to Rs. 168.75 per kg.