How to Calculate the Export Cost Price? Leave a comment


I am new to the business position of a foreign trade company and need to quote. The customer is sensitive to the price, so the quotation needs to be more precise. It is not only to win a deal, but also to make a profit. So I want to know how to turn the domestic tax-included price into a FOB price.


You must first understand the export tax rebate rate for quoted products. It is recommended to check the export tax rules of the year carefully, and it is necessary to ensure that the rate is the latest. Then, the actual cost of the payment is calculated according to (RMB price including tax / 1.17) * (1 + 0.17 – export tax rebate rate). In the actual export, except paying for the supplier’s goods, there are some local charges, like the document fee. You can ask the forwarder about this to get the price content and then divide it equally to each unit. In this case, the export cost of the goods is roughly (RMB price including tax / 1.17) *(1 + 0.17 – tax rebate rate) + RMB domestic fees.

Considering the profit rate and exchange rate of foreign trade, the final FOB price is [(RMB price including tax / 1.17) * (1 + 0.17 – tax rebate rate) + RMB domestic fees] / exchange rate * (1 + profit margin).


However, the price of some factories isn’t the price sent to the Shanghai Port Warehouse, but the factory delivery price, even without packaging. Therefore, you must confirm the scope of the supplier’s offer. Besides, the port charges for some goods may be high. For example, a single piece of cargo weighing 60 tons can’t use general containers. It only can be loaded with bulk carriers. Moreover, the cranes that come with the ship may not be able to operate such large cargo. Then, you must get a specialized crane. Yet, the price of this kind of special equipment is relatively high. Borrowing once may cost 5000 yuan or even tens of thousands of yuan. Thus, for some goods that require special arrangements, these costs must be considered in advance.

The exchange rate of the quotation is also a link that needs attention. For example, the recent appreciation trend of the RMB is evident. Hence, it is recommended to calculate the price based on the exchange rate at the time of collection. If your profit margin is high, no matter how the rate changes, it can contain all the extra costs. However, if the quotation profit is only 2%, once the rate or local charge change slightly, your profit will go. So, if the profit margin is not high, you must calculate the cost and cost accurately.

The cost is learned to have an accurate calculation of the profit of each contract. If you can’t calculate the gross profit, even the independent price accounting, it is impossible to face the customer and solve problems by yourself.


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