国际贸易实务英文版第二版周瑞琪3Export Price

Sub-Total
Total
5
3.3 Calculation of price
= Selling price free on board (FOB)
+ Freight to port of destination
= Selling price cost and freight (CFR)
+ Insurance
= Selling price cost, insurance, freight (CIF)
+ Additional costs for full transport insurance
= Price ex ship (DES)
+ Costs of import clearance
+ Unloading, THC
?Ocean freight
?Provided by shipping lines ?Quoted as packaged price ?Others like “additionals” and “surcharges”
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3.3.3 CIF Price
? If FOB price is available
+ Costs for documents (ie delivery order)
= Selling price delivered ex-quay (DEQ)
+ Land transport costs to nominated destination
+ Full transport to destination
= price including C x (1- C rate)
? Price including C (FSEOIB OBF G/DFUFCS A) = net price / (1-C rate)
–C
12
3.3.5 Price with discount
? Discount
?a certain percent of price reduction, a special favor given by the exporter to the importer
+
Storage costs, terminal handling charge (THC),
loading onto ship charge
+
Export customs clearance cost
=
FOB (Named port of shipment)
? FOB in freight currency
? CIF = FOB + Ocean Freight + Insurance Premium
? If CFR price is available
? CIF = CFR + Insurance Premium
? Calculation of Insurance Premium (I)
? Based on contract value/invoice value + ? A markup (normally 10%) to cover incidental costs ? Formula: I = CIF x (1+10%) x Premium Rate (R) ? Therefore ? CIF = CFR + CIF x (1+10%) x Premium Rate (R) or ? CIF = CFR / (1 – 110% x R)
?FOB = CFR – F
? CIF = CFR / [1
– (1+markup) x R]
?Conversion of CIF to other prices
? FOB = CIF x [1
– (1+markup) x R] – F
? CFR = CIF x [1
– (1+markup) x R]
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Conversion of FOB, CFR & CIF Prices
?Conversion of FOB to other prices
?CFR = FOB + F
?CIF = (FOB + F) / [1
– (1+markup) x R]
?Conversion of CFR to other prices
? Payment terms
? The lower the financing charges, the higher the risk of payment
? Other factors to be considered
? foreign exchange rates
? international market price for similar products
SEIBiderations
?Cost
?Cost of production
?Direct cost: material costs, labour costs, allocation of fixed costs, packing costs, etc.
? Capability of target market
? Referring to the consumption power, income level, supply and demand relationship
? The higher the capital income of the target market, the higher the price
= Selling price ex works (EXW) + Transport costs from plant to place of loading (train/truck) = Selling price free carrier (FCA)
+ Transport costs from place of loading to shipping port + Unloading at harbour + Transport insurance to shipping port = Selling price free alongside ship (FAS)
unit
?A unit for measuring quantity:
yd, set
kg, gr, m/t,
?A certain trade term: FOB, CFR, CIF
?Examples:
?USD225.30/piece CIF New York
?FOB Guangzhou EUR12.80/set
?Reasons for discounting:
?To increase market competitiveness
?To get rid of stocked goods
?As a motivator for B to introduce goods into new markets
?As a compensation for settling disputes or
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3.3.4 Price including commission
?Net price = basic costs + profit
? Commission
?An incentive payment made to the middlepersons for their intermediary services
Chapter Three
Export Price
3.1 Expression of export price
?Four components in a standard format of a price:
?A code of currency: USD, CAD,CNY, EUR, GBP
?A number indicating the price
?Expressed in a fixed figure or in a percentage ? Examples
?CFR London GBP100 per doz, including 2% commission ?USD200 per M/T CIFC2% London ?CIFC3 Hamburg USD100/set ?CAD150 per M/T FOB Toronto, including CAD8 per M/T
commission
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3.3.4 Price including commission
?Two ways of calculating commission
?based on invoice /contract value
?C = contract value x C rate
insurance premium, taxes and tariffs,
customs duties
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3.2 Pricing considerations
? Anticipated profit margin
? in an absolute number
? in a percentage → profit margin
Table 3.2 FOB Costing Worksheet
FOB
Free on Board
Factory purchasing cost
+
Profit margin
+
Transport cost from plant to shipping port
+
Transport insurance to shipping port (optional)
? policies and regulations in aSpEIBaOrFtGDicUFuS lar market area
4
3.3 Calculation of price
Item Manufacturing cost + Export packaging (depending on mode of transport) + Profit margin – Discounts/rebates/volume discounts/sales commission
= Selling price delivered duty unpaid (DDU)
+ Costs of customs duty
= Price delivered duty paid (DDP)
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3.3.1 FOB Price
? FOB in local currency
?Administrative costs: overhead
?Cost of sales
?Marketing costs: advertising, sales trip expenses, commissions intermediary services
?Cost of delivery
?Warehousing and transporting charge,
?based on FOB or FCA:
?Under such terms as CFR, CIF, C is calculated before F and I are deducted
?Formula:
? C = price including C (FOB/FCA) x C rate ? Net price = price including C (FOB/FCA)
? FOB in freight currency = (Total Cost +
Profit)/Exchange Rate
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3.3.2 CFR Price
?If FOB price is available
?CFR = FOB + Ocean Freight
+ Storage costs, terminal handling charge (THC), loading onto ship
+ Costs for export clearance + Commission of port agent
Table 3.1 Costing Worksheet
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