Since the export prices under all price terms are based on the FOB price, the following is an example of FOB (shipside delivery) quotation as an example of how we should calculate the external quotation. 1. Foreign trade companies or other trade companies that purchase finished products are foreign trade companies that refer to trade companies. It is characterized by the purchase of finished products and external sales. Generally, domestic suppliers are required to provide VAT invoices and export-specific payment statements to prove that the goods are for export. In this way, foreign trade companies can apply for tax refund procedures. Since the tax rebates in China are all refunded to foreign trade companies at this stage, the domestic suppliers (factories) are quoted as after-tax prices. There is also a concept here, that is, the exchange cost, which refers to the RMB cost per exchange for one unit of foreign exchange, which is an important parameter to measure the level of price profit. For example: your selling price is USD2.10, your purchase cost is RMB17.8, then the exchange cost (without considering other expenses) is: exchange cost (x) = RMB cost (A) / foreign exchange income (B) = 17.8/2.10 = 8.5 We do not consider the level of our profit at a particular exchange cost (eg x = 8.5). Let's see how we can guarantee that we are not losing money. That is to say, we have to calculate the cost of a critical exchange (x). If the exchange cost is higher than this x, we will lose money, and vice versa. A better way to calculate this x is to start with a simpler concept: profit = income - cost when x = x, profit = 0, that is: income = cost income = collection amount + tax refund cost = payment + fee is the collection of foreign exchange Amount + tax refund = payment + fee In order to be clearer, we set the purchase price = A1, the cost = A2, the tax refund rate is y, the foreign exchange amount = B (the following is assumed to be USD), then the tax refund = A1 * y / 117, in addition, We do not consider the various costs, that is, A2 = 0, then the above equation becomes: (assuming the dollar selling price is 8.2646) 8.2646B + A1 * y / 117 = A1, then what is x, according to the above The concept, x=A1/B, it is not difficult to calculate x=A1/B=8.2646/(1-y/117) for the tax refund is 15, x=8.2646/(1-15/117)=9.480, that is to say, For the factory price of 9.48 products, if your foreign FOB price is lower than USD1.00, then you have to lose money, must be higher than USD1.00, you can make money. We measure the profit level of a price. Generally, the profit of USD 1.00 can be explained. For example, according to the product of 9.48, if the tax refund is 15% and the price is USD1.30, then x=7.292, we It can be said that this offer can earn RMB xx=9.480-7.292=2.188 for one US dollar. A US dollar can earn 2.188 yuan! Great, right? ! Just an example, and the cost has not been calculated yet! The cost includes: direct cost (cost that can be calculated according to each ticket) customs declaration fee (100-300 yuan / 20) inland freight (0-10000000 yuan) internal packing fee (1000 or so / 20) collection fee (such as L/C bank fees and discrepancies. USD0-300/ticket) Commodity inspection fee (0.125% of shipment amount) Agency fee (about 1%) Express fee (such as bill of lading for customers) Tax refund interest overhead ( Fees that cannot be calculated according to each shipment) Office expenses (rental, staff salary, participation fee, water and electricity, welfare, travel, etc.) 2. The production-oriented export enterprises of production enterprises implement the “free-return†policy. For self-operated export, there is no tax refund. Therefore, x is 8.2646, such as factory cost 12.00, foreign FOB price is USD1.66, x=7.23 One dollar can earn 8.26-7.23=1.03 yuan. 3. Quotes under other price terms Common price terms are CNF and CIF. It is based on FOB plus freight and insurance. Electrical Fan Co., Ltd. , http://www.nselectricfan.com
September 21, 2018