How to calculate Costing for Export?

What's Pricing Competitiveness?

How do you do Export Quotations?

Summary of Export Price Costing


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.

To make the product more attractive to foreign buyer, exporters sometimes quote F.O.B. price and a named foreign port or city. Thus, for example, a Japanese firm may quote F.O.B. Hamburg price to its European customers

Marine insurance - The exporter will want to insure itself against financial loss from all possible risks, including damage to the goods or theft, while they are being shipped abroad.

Usually, ocean ships are insured for 110% of their total cost to cover anticipated profit and the interest cost of working capital tied up in the shipment.

Total (C.I.F. local funds) - This is the total price of the goods calculated in such a way as to include all the various costs involved, including insurance and freight. It is the total in item 19, plus the insurance premium.

Conversion into Foreign Exchange
The foreign buyer will usually ask for a price quotation in U.S. dollars or perhaps in German marks, Japanese yen, or some other currency. Therefore the exporter's local currency price must be converted into the foreign currency.

Special International Trade Terms
Actually, these prices are identical with  CIF prices because all the cost of shipping the goods are paid by the exporter.

export cost calculation - the exporter may quote F.O.B. Port Klang or F.O.B. KL International Airport, what this means is that the cost of transporting the goods up to the point where the goods are loaded onto the Ship or Airplane and any other service charges are paid by the exporter.