The price composition of FOB, CFR and CIF is only applicable to sea or inland waterway transportation.In the price composition, it usually includes three aspects: purchase cost, expense and net profit.The accounting of expenses is the most complex, including domestic and foreign expenses.
Domestic expenses are:
1.Processing and finishing expenses;
2.Packing charge;
3.Storage expenses (including warehouse rent, fire insurance, etc.);
4.Domestic transportation expenses (warehouse to wharf);
5.Certificate fees (including commodity inspection fees, notary fees, consular visa fees, certificate of origin fees, permit fees, customs declaration fees, etc.);
6.Loading fee (loading, hoisting fee and barge fee, etc.);
7.Bank charges (discount interest, service charge, etc.);
8.Expected loss (loss, short loss, loss, damage, deterioration, etc.);
9.Postage (charges for telegram, telex, mail, etc.).
Overseas expenses mainly include:
1.Foreign freight (sea freight from port of loading to port of destination);
2.Foreign insurance premium (insurance on carriage of goods by sea);
3.If there is a middleman, there is also a commission paid to the middleman.
The calculation formula is as follows:
FOB price = purchase cost price domestic expense net profit
CFR price = input cost price domestic cost foreign freight net profit CIF price = input cost domestic cost foreign freight foreign insurance premium net profitIn the price composition, it usually includes three aspects: purchase cost, expense and net profit.
Domestic expenses are:
1.Processing and finishing expenses;
2.Packing charge;
3.Storage expenses (including warehouse rent, fire insurance, etc.);
4.Domestic transportation expenses (warehouse to wharf);
5.LCL (if the goods cannot be made into a whole container);
6.Certificate fees (including commodity inspection fees, notary fees, consular visa fees, certificate of origin fees, permit fees, customs declaration fees, etc.);
7.Bank charges (discount interest, service charge, etc.);
8.Expected loss (loss, short loss, loss, damage, deterioration, etc.);
9.Postage (charges for telegram, telex, mail, etc.).
Overseas expenses mainly include:
1.Outward freight (transportation expenses from the inland place of shipment of the exporting country to the foreign destination);
2.Foreign insurance;
3.If there is a middleman, there is also a commission paid to the middleman.
The calculation formula is as follows:
FCA price = purchase cost price domestic expense net profit
CPT price = purchase cost price domestic cost foreign freight net profit
CIP price = purchase cost domestic cost foreign freight foreign insurance net profit
Copyright © 2019 Zhejiang waxing electromechanical co.LTD. | All Rights Reserved Design
Hello, please leave your name and email here before chat online so that we won't miss your message and contact you smoothly.