 Secrets of International Import Export Trading How to calculate import export costing in your local currency? Thereafter, you can easily convert it into any foreign currency for the export or import pricing of your products.
1.- Determine Product Cost -in your local currency Export quotation may take various forms: a verbal agreement, a telephone, telex, cable, fax, airmailed letter or E-mail. It may also be a pro-forma invoice, which is an outline of what the commercial invoice would be-showing all details of the shipment. Export quotation should describe the goods, the quantity involved, the unit price, the total value, the delivery and payment terms. The export quotation, of which the price is one ingredient only, in business law, an offer. Once accepted by the buyer, an export contract comes into being. Should the foreign buyer respond to your offer with a counter-offer (e.g. agreeing to buy only, with different payment terms), then an export contract is formed only if you accept the counter-offer. The most usual form of export price quotation is C.I.F., and a named foreign port. This means that the exporter is responsible for paying all costs until the goods arrive at the foreign port. The price is usually quoted in U.S. dollars. The foreign importer can then calculate his landed cost for the product by adding to the C.I.F. price quoted, the import duty, local taxes and local transportation costs. |