国际贸易实务英文版第二版周瑞琪3Export Price
最新国际贸易实务(英文版)(第二版)ppt周瑞琪2.Trade Terms培训资料
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2.2 Basics of Incoterms 2000
2.2.1 Scope of Governance
Parties involved: concerning only 2 parties -seller & buyer
Document applied: only to the contract of sale
and risk distribution between the parties
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2.2.1 Scope of Governance
Obligation
Obligation -- a legal duty to do something according to a certain agreement.
Specific aspects governed: only settle matters
concerning the delivery of tangibles goods sold
Focusing only on the delivery of tangible goods Delivery also indicating the transfer of obligations, cost
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Warsaw-Oxford Rules 1932
Initially in 1928---“Warsaw Rules, 1928”
22 provisions governing the rights and obligations of the parties to a sale of goods on CIF (Cost, Insurance and Freight) contract terms.
国际贸易实务(英文版)(第二版)周瑞琪1Gerneral_int
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1.4 Export and import procedures
The preparation of a transaction The negotiation of the contract The performance of the contract The settlement of disputes
Direct trade
Two parties involved: the importer and the exporter
Indirect trade
Three parties involved: the exporter, the importer and the intermediate party
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1.4.1 The preparation of a transaction
Finding the potential partner
Sources of information
Reference provided by the foreign partners The nearest consulate office International or local chamber of commerce Consulting firms Foreign exchange banks Trade directories and publications
trade realize the importance of contract
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Concept of international trade
International trade / world trade / foreign trade / overseas trade
国际贸易实务 英文版 第二版 pt周瑞琪 Export rice
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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
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
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3.2 Pricing considerations
Anticipated profit margin
in an absolute number in a percentage → profit margin
Capability of target market
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 previous orders
+ Storage costs, terminal handling charge (THC), loading onto ship
国际贸易实务英文版第二版周瑞琪1Gerneralint
1.4.1 The preparation of a transaction
Finding the potential partner
Sources of information
Reference provided by the foreign partners The nearest consulate office International or local chamber of commerce Consulting firms Foreign exchange banks Trade directories and publications
15
1.4.1 The preparation of a transaction
Studying creditability of the partner
Credit reference from
the local bank or correspondent bank
business range and annual sales volume sales literature and pricelists major customers business culture
international rules foreign currencies higher risks: Political risks, Commercial risks,
Financial risks, and Transportation risks more complex business procedures broader range of management skills
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1.3 Classification of international trade
最新国际贸易实务(英文版)(第二版)ppt周瑞琪2.Trade Terms培训资料
“Risk” refers to accidental damage to the goods.
time: when does the risk pass from the sellers to the
buyers?
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2.2.2 Categorization of Terms
Arrival
Delivered at Frontier (…named place) Delivered Ex Ship (…named port of destination) Delivered Ex Quay (…named port of destination) Delivered Duty Unpaid (…named place of destination) Delivered Duty Paid (…named place ofSdEeIsBtionf aGtDioUnF)S
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2.2 Basics of Incoterms 2000
2.2.1 Scope of Governance
Parties involved: concerning only 2 parties -seller & buyer
Document applied: only to the contract of sale
货交承运人（…指定地点） 船边交货（ …指定装运港） 船arriage paid
Cost and Freight (…named port of destination)
成本加运费（ …指定目的港）
Cost, Insurance and Freight (…named port of destination)
国际贸易实务英文版第二版课后习题答案解析
III. Explain the following terms1. shipment contractShipment contract is a contract using an Incoterm which indicates that the delivery happens at the time or before the time of shipment.2. symbolic deliverySymbolic delivery is a delivery situation in which when the seller delivers the buyer does not physically receive the goods. This kind of delivery is proved by the submission of transport document by the seller to the buyer.3. arrival contractArrival contract means a contract using an Incoterm which indicates that the delivery happens when the goods arrive at the destination.4. actual deliveryActual delivery refers to a delivery situation in which when the seller delivers the buyer does physically receive the goods.IV. Short questions1. Who pays for loading for shipment under FOB ?The seller.2. Who pays for unloading under CIF?The buyer.3. Compare and contrast FOB, CFR and CIF?Similarities: a. The seller's risk will be transferred to the buyer when the goods are loaded on board, b. The seller is responsible for export customs formalities while the buyer is responsible for import customs formalities, c. The buyer is responsible for unloading the goods at the port of destination, d. All three terms can only be used for waterway transportation.Differences: a. FOB requires the buyer to arrange and pay for the ocean transportation; CFR requires the seller to arrange and pay for the ocean transportation; CIF requires the seller to arrange and pay for the ocean transportation and insurance against the buyer's risk.4. What are the two types of trade terms concerning the transfer of risks?Shipment contract terms vs. arrival contract terms. Under shipment contract terms the seller's risk will be transferred to the buyer before the goods depart from the place/port of shipment.Under arrival contract terms the seller will bear the risk of the goods until the goods arrive at the destination.5. What are the differences and similarities between CPT and CFR?Major similarities: a. The seller should contract and pay for the major carriage. b. The seller is not taking the risk of loss of or damage to the goods during the transportation.Difference: a. CPT is applicable to any kind of transportation mode while CFR is only used for waterway transport, b. Under CPT the seller's risk will be transferred to the buyer when the goods are handed over to the first carrier nominated by the seller. Under CFR the seller's risk will be transferred when the goods are loaded on board the vessel.6. What are the differences and similarities between CIP and CIF?Major similarities: a. The seller should contract and pay for the major carriage. b. The selleris not taking the risk of loss of or damage to the goods during the transportation, c. The seller must obtain insurance against the buyer's risk.Difference: a. CPT is applicable to any kind of transportation mode while CFR is only used for seaway or inland waterway transport, b. Under CPT the seller's risk will be transferred to the buyer when the goods are handed over to the first carrier nominated by the seller.Under CFR the seller's risk will be transferred when the goods are loaded on board the vessel.7. If you trade with an American, is the sales contract subject to Incoterms without any doubt?What should you do?No. The Revised American Foreign Trade Definitions 1941 is still in use, especially in the North American area. It has different interpretation about some trade terms. The traders should clarify the choice of rules before any further discussion.8. What are the most commonly used trade terms?FOB, CFR & CIF.9. Who is responsible for carrying out customs formalities for exports under an FOB contract?The seller. According to Incoterms 2010, except EXW and DDP these two terms, all the other eleven terms require the seller to handle the export customs formalities, while the buyer the import customs formalities.10. If a Chinese trader signs an FOB Hamburg contract, is he exporting or importing?Importing. FOB should be used with a "named port of shipment", if Hamburg is the port of shipment, from the Chinese trader's perspective, he is importing.V. Case studies1. An FOB contract stipulated "The shipment will be effected in March 2011." When the goodswere ready on 10 March 201 l, the seller contacted the buyer for shipment details. The buyer faxed "Please send the goods to the port for loading on 21 March. The vessel will depart on22 March." The seller sent the goods to the port accordingly. However the nominated vesseldid not turn up and the goods had to be stored in the warehouse at the port. On the night of 21 March a fire happened in the warehouse area and part of the goods was damaged. When the vessel arrived two days later the seller and the buyer had an argument about the settlement of the loss. The seller required the buyer to bear the loss caused by the fire, but the buyer believed that the vessel arrived within the shipment period and the loss occurred before the seller delivered the goods therefore the seller should bear the loss. Please provide your solution.析：1)首先案例中提到货物发生了损失是由于货物存放在码头仓库期间发生火灾造成的。
国际贸易实务(周瑞琪等)-课后答案详解
国际贸易实务(英文版) International Trade Practice周瑞琪王小欧徐月芳编著Chapter twoIV. Short questions1.Who pays for loading for shipment under FOB?答：Seller.2.Who pays for unloading under CIF?答：Buyer.pare and contrast FOB, CFR and CIF?答：Similarities: a. Sel ler’s risk will be transferred to the buyer when the goods pass the ship’s rail. b. Seller is responsible for export customs formalities while buyer is responsible for import customs formalities. c. Buyer is responsible for unloading the goods at the port of destination. d. All three terms can only be used for waterway transportation. Differences: a. FOB requires the buyer to arrange and pay for the ocean transportation; CFR requires the seller to arrange and pay for the ocean transportation; CIF requires the seller to arrange and pay for the ocean transportation and insurance against the buyer’s risk.4.What are the two types of trade terms concerning the transfer of risks?答：Shipment contract terms vs. arrival contract terms. Under shipment contract terms s eller’s risk will be transferred to the buyer before the goods depart from the place/port of shipment. Under arrival contract terms seller will bear the risk of the goods until the goods arrive the destination.5.What are the differences and similarities between CPT and CFR?答：Major similarities: a. seller should contract and pay for themajor carriage. b. Seller is not taking the risk of loss or damage to the goods during the transportation. Difference: a. CPT is applicable to any kind of transportation mode while CFR is only used for waterway transport. b. Under CPT seller’s risk will be transferred to the buyer when the goods are handed over to the first carrier nominated by seller. Under CFR seller’s risk will be transferred when the goods pass over the s hip’s rail.6.What are the differences and similarities between CIP and CIF?答：Major similarities: a. seller should contract and pay for the major carriage. b. Seller is not taking the risk of loss or damage to the goods during the transportation. c. Seller must obtain insurance against buyer’s risk. Difference: a. CPT is applicable to any kind of transportation mode while CFR is only used for waterway transport. b. Under CPT seller’s risk will be transferred to the buyer when the goods are handed over to the first carrier nominated by seller. Under CFR seller’s risk will be transferred when the goods pass over the ship’s rail.7.If you trade with an American, is the sales contract subject to Incoterms without any doubt? What should you do?答：No. The Revised American Foreign Trade Definitions 1941 is still in use, especially among the North American area. It has different interpretation about some trade terms. The traders should clarify the choice of rules before any further discussion.8.What are the most commonly used trade terms?答：FOB,CFR & CIF.9.Who is responsible for carrying out customs formalities for exports under an FOB contract?答：Seller. According to Incoterms 2000, except EXW and DDP these two terms, all the other eleven terms require the seller to handle the export customs formalities, while buyer the import customs formalities.10.If a Chinese trader signs a FOB Hamburg contract, is he exporting or importing?答：Importing. FOB should be used with a “named port of shipment”, if Hamburg is the port of shipment, from the Chinese trader’s perspective, he is importing.V．Case Studies1. An FOB contract stipulated, "The shipment will be effected in March 2008. If the vessel fails to arrive at the port of shipment on time, the seller agrees to set aside the goods for additional 27 days, and the buyer will bear all costs of delay." it turned out that under the seller's repeated requests, the vessel named by the buyer finally arrived at the port of shipment on May 1. As a result, the seller refused to make the shipment.(1)Was the seller entitled to compensation for thewarehouse rent, insurance and interest due to the delay?(2)If the seller had sold the goods to a third party onApril 25, should the buyer pay for the delay?(3)If the seller had sold the goods to a third party onMay 1 with a better price, was he entitled to any compensation?析： a案例中提到“shipment will be effected in March 2008”,这种确定装运时间的方式允许在整个3月份期间的任何时间进行装运。
国际贸易实务英文第二周瑞琪Export Price
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 unit A unit for measuring quantity: kg, gr, m/t, yd, set A certain trade term: FOB, CFR, CIF
Examples:
USD225.30/piece CIF New York FOB Guangzhou EUR12.80/set
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Cost
Cost of production
Direct cost: material costs, labour costs, allocation of fixed costs, packing costs, etc.
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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 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)
国际贸易实务(英文版)(第二版)周瑞琪1Gerneral_int
Mostly consuming goods: cars, wines, shoes etc. Needs customs declaration
Invisible trade / intangible goods trade
services and technology Needs no customs declaration
and restrictions
Sources of information
Domestic organizations: Ministry of Commerce and its provincial committees
Overseas organizations: Chinese Embassy, the Local banks, the agent and the local newspaper / journal articles
trade realize the importance of contract
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Concept of international trade
International trade / world trade / foreign trade / overseas trade
If unable to apply or get the import and export licenses
The exporter needs to consider to do business under EXW term
The importer needs to consider to do business under DDP term
国际贸易实务(英文版)(第二版)ppt周瑞琪3.Export Price
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 unit
+ Costs for documents (ie delivery order)
= Selling price delivered ex-quay (DEQ)
+ Land transport costs to nominated destination
+ Full transport to destination
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3.2 Pricing considerations
Cost
Cost of production
Direct cost: material costs, labour costs, allocation of fixed costs, packing costs,
4
3.3 Calculation of ce
Item Manufacturing cost + Export packaging (depending on mode of transport) + Profit margin – Discounts/rebates/volume discounts/sales commission = 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)
英文版国际贸易实务2-7答案
国际贸易实务（英文版）International Trade Practice周瑞琪王小欧徐月芳编著Chapter twoIV。
Short questions1。
Who pays for loading for shipment under FOB？答：Seller.2. Who pays for unloading under CIF?答:Buyer。
3. Compare and contrast FOB, CFR and CIF？答：Similarities: a. Sel ler’s risk will be transferred to the buyer when the goods passthe ship’s rail. b. Seller is responsible for export customs formalities while buyer is responsible for import customs formalities。
c。
Buyer is responsible for unloading the goods at the port of destination。
d. All three terms can only be used for waterway transportation。
Differences: a. FOB requires the buyer to arrange and pay for the ocean transportation；CFR requires the seller to arrange and pay for the ocean transportation; CIF requires the seller to arrange and pay for the ocean transportation and insurance against the buyer's risk。
最新国际贸易实务(周瑞琪等)-课后答案详解
国际贸易实务(英文版) International Trade Practice周瑞琪王小欧徐月芳编著Chapter twoIV. Short questions1.Who pays for loading for shipment under FOB?答：Seller.2.Who pays for unloading under CIF?答：Buyer.pare and contrast FOB, CFR and CIF?答：Similarities: a. Sel ler’s risk will be transferred to the buyer when the goods pass the ship’s rail. b. Seller is responsible for export customs formalities while buyer is responsible for import customs formalities. c. Buyer is responsible for unloading the goods at the port of destination. d. All three terms can only be used for waterway transportation. Differences: a. FOB requires the buyer to arrange and pay for the ocean transportation; CFR requires the seller to arrange and pay for the ocean transportation; CIF requires the seller to arrange and pay for the ocean transportation and insurance against the buyer’s risk.4.What are the two types of trade terms concerning the transfer of risks?答：Shipment contract terms vs. arrival contract terms. Under shipment contract terms s eller’s risk will be transferred to the buyer before the goods depart from the place/port of shipment. Under arrival contract terms seller will bear the risk of the goods until the goods arrive the destination.5.What are the differences and similarities between CPT and CFR?答：Major similarities: a. seller should contract and pay for the major carriage. b.Seller is not taking the risk of loss or damage to the goods during the transportation. Difference: a. CPT is applicable to any kind of transportation mod e while CFR is only used for waterway transport. b. Under CPT seller’s risk will be transferred to the buyer when the goods are handed over to the firstcarrier nominated by seller. Under CFR seller’s risk will be transferred when the goods pass over the s hip’s rail.6.What are the differences and similarities between CIP and CIF?答：Major similarities: a. seller should contract and pay for the major carriage. b.Seller is not taking the risk of loss or damage to the goods during the transportation. c. Seller must obtain insurance against buyer’s risk. Difference: a.CPT is applicable to any kind of transportation mode while CFR is only used for waterway transport. b. Under CPT seller’s risk will be transferred to the buyer when the goods are handed over to the first carrier nominated by seller. Under CFR seller’s risk will be transferred when the goods pass over the ship’s rail.7.If you trade with an American, is the sales contract subject to Incoterms withoutany doubt? What should you do?答：No. The Revised American Foreign Trade Definitions 1941 is still in use, especially among the North American area. It has different interpretation about some trade terms. The traders should clarify the choice of rules before any further discussion.8.What are the most commonly used trade terms?答：FOB,CFR & CIF.9.Who is responsible for carrying out customs formalities for exports under an FOBcontract?答：Seller. According to Incoterms 2000, except EXW and DDP these two terms, all the other eleven terms require the seller to handle the export customs formalities, while buyer the import customs formalities.10.If a Chinese trader signs a FOB Hamburg contract, is he exporting or importing? 答：Importing. FOB should be used with a “named port of shipment”, if Hamburg is the port of shipment, from the Chinese trader’s perspective, he is importing.V．Case Studies1. An FOB contract stipulated, "The shipment will be effected in March 2008. If thevessel fails to arrive at the port of shipment on time, the seller agrees to set aside the goods for additional 27 days, and the buyer will bear all costs of delay." it turned out that under the seller's repeated requests, the vessel named by the buyer finally arrived at the port of shipment on May 1. As a result, the seller refused to make the shipment.(1)Was the seller entitled to compensation for the warehouse rent, insurance andinterest due to the delay?(2)If the seller had sold the goods to a third party on April 25, should the buyerpay for the delay?(3)If the seller had sold the goods to a third party on May 1 with a better price,was he entitled to any compensation?析：a案例中提到“shipment will be effected in March 2008”,这种确定装运时间的方式允许在整个3月份期间的任何时间进行装运。
英文版国际贸易实务2-7答案
英文版国际贸易实务2-7答案英文版国际贸易实务2-7答案国际贸易实务(英文版)internationalTradePractice周瑞琪王小欧徐月芳编著chaptertwoiV.Shortquestions1.whopaysforloadingforshipmentunderFoB?答：Seller.2.whopaysforunloadingunderciF?答：Buyer.pareandcontrastFoB,cFRandciF?答：Similarities:a.Seller’sriskwillbetransferredtothebuyerwhenthegoodspasstheship’srail.b.Sellerisresponsibleforexportcustomsformalitieswhilebuyerisrespon sibleforimportcustomsformalities.c.Buyerisresponsibleforunloadingthego odsattheportofdestination.d.allthreetermscanonlybeusedforwaterwaytrans portation.differences:a.FoBrequiresthebuyertoarrangeandpayfortheoceant ransportation; cFRrequiresthesellertoarrangeandpayfortheoceantransportation; ciFrequiresthesellertoarrangeandpayfortheoceantransportationandinsuranceagainstthebuyer’srisk.4.whatarethetwotypesoftradetermsconcerningthetransferofrisks?答：Shipmentcontracttermsvs.arrivalcontractterms.Undershipmentcontractter msseller’sriskwillbetransferredtothebuyerbeforethegoodsdepartfromtheplace/portof shipment.Underarrivalcontracttermssellerwillbeartheriskofthegoodsuntilt hegoodsarrivethedestination.5.whatarethedifferencesandsimilaritiesbetweencPTandcFR?答：majorsimilarities:a.sellershouldcontractandpayforthemajorcarriage.b. Sellerisnottakingtheriskoflossordamagetothegoodsduringthetransportation .difference:a.cPTisapplicabletoanykindoftransportationmodewhilecFRiso nlyusedforwaterwaytransport.b.UndercPTseller’sriskwillbetransferredtothebuyerwhenthegoodsarehandedovertothefirstcar riernominatedbyseller.UndercFRseller’sriskwillbetransferredwhenthegoodspassovertheship’srail.6.whatarethedifferencesandsimilaritiesbetweenciPandciF?答：majorsimilarities:a.sellershouldcontractandpayforthemajorcarriage.b. Sellerisnottakingtheriskoflossordamagetothegoodsduringthetransportation .c.Sellermustobtaininsuranceagainstbuyer’srisk.difference:a.cPTisapplicabletoanykindoftransportationmodewhilecF Risonlyusedforwaterwaytransport.b.UndercPTseller’sriskwillbetransferredtothebuyerwhenthegoodsarehandedovertothefirstcar riernominatedbyseller.UndercFRseller’sriskwillbetransferredwhenthegoodspassovertheship’srail.7.ifyoutradewithanamerican,isthesalescontractsubjecttoincotermswithouta nydoubt?whatshouldyoudo?答：no.TheRevisedamericanForeignTradedefinitions1941isstillinuse, especiallyamongthenorthamericanarea.ithasdifferentinterpretationaboutso metradeterms.Thetradersshouldclarifythechoiceofrulesbeforeanyfurtherdi scussion.8.whatarethemostcommonlyusedtradeterms?答：FoB,cFR&ciF.9.whoisresponsibleforcarryingoutcustomsformalitiesforexportsunderanFo Bcontract?答：Seller.accordingtoincoterms2000,exceptEXwandddPthesetwoterms,all theothereleventermsrequirethesellertohandletheexportcustomsformalities, whilebuyertheimportcustomsformalities.10.ifachinesetradersignsaFoBHamburgcontract,isheexportingorimporting?答：import ing.FoBshouldbeusedwitha―namedportofshipment‖,ifHamburgistheportofshipment,fromthechinesetrader’sperspective,heisimporting. V．caseStudies1.anFoBcontractstipulated,”Theshipmentwillbeeffectedinmarch20XX.ifth evesselfailstoarriveattheportofshipmentontime,theselleragreestosetasidethe goodsforadditional27days,andthebuyerwillbearallcostsofdelay.”itturnedoutthatundertheseller'srepeatedrequests,thevesselnamedbyth ebuyerfinallyarrivedattheportofshipmentonmay1.asaresult,thesellerrefuse dtomaketheshipment.(1)wasthesellerentitledtocompensationforthewarehouserent,insuranceand interestduetothedelay?(2)ifthesellerhadsoldthegoodstoathirdpartyonapril25,shouldthebuyer payforthedelay?(3)ifthesellerhadsoldthegoodstoathirdpartyonmay1withabetterprice, washeentitledtoanycompensation?析：a案例中提到―shipmentwillbeeffectedinmarch20XX‖,这种确定装运时间的方式允许在整个3月份期间的任何时间进行装运。
英文版国际贸易实务2-7答案---精品管理资料
国际贸易实务（英文版) International Trade Practice周瑞琪王小欧徐月芳编著Chapter twoIV. Short questions1. Who pays for loading for shipment under FOB？答：Seller.2. Who pays for unloading under CIF？答：Buyer。
3. Compare and contrast FOB，CFR and CIF?答：Similarities: a。
Seller's risk will be transferred to the buyer when the goods passthe ship's rail. b。
Seller is responsible for export customs formalities while buyer is responsible for import customs formalities. c. Buyer is responsible for unloading the goods at the port of destination. d. All three terms can only be used for waterway transportation. Differences：a. FOB requires the buyer to arrange and pay for the ocean transportation; CFR requires the seller to arrange and pay for the ocean transportation; CIF requires t he seller to arrange and pay for the ocean transportation and insurance against the buyer’s risk.4. What are the two types of trade terms concerning the transfer of risks?答：Shipment contract terms vs。
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= Selling price cost, insurance, freight (CIF)
+ Additional costs for full transport insurance
= Price ex ship (DES)
+ Costs of import clearance
+ UnBiblioteka oading, THC= 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)
= Selling price delivered duty unpaid (DDU)
+ Costs of customs duty
= Price delivered duty paid (DDP)
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3.3.1 FOB Price
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2
3.2 Pricing considerations
?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
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
? 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
?Administrative costs: overhead
?Cost of sales
?Marketing costs: advertising, sales trip expenses, commissions intermediary services
?Cost of delivery
?Warehousing and transporting charge,
+ 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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insurance premium, taxes and tariffs,
customs duties
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3
3.2 Pricing considerations
? Anticipated profit margin
? in an absolute number
? in a percentage → profit margin
+ Costs for documents (ie delivery order)
= Selling price delivered ex-quay (DEQ)
+ Land transport costs to nominated destination
+ Full transport to destination
? 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
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
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