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 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
SEIB OF GDUFS23.2 Pricing considerations
Cost
Cost of production
Direct cost: material costs, labour costs, allocation of fixed costs, packing costs, etc.
SEIB OF GDUFS
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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)