What is FOB fee? How to calculate FOB fee?

What is FOB fee? How to calculate FOB fee?

What is FOB fee?

FOB is one of the commonly used trade terms in international trade and a common price clause in international trade contracts. The full text of FOB is Free On Board (… named port of shipment), which means delivery on board (designated port of shipment), and is usually called delivery on board the port of shipment. FOB is also called "free on board".

Under FOB transactions, the buyer is responsible for sending a ship to pick up the goods, and the seller should load the goods onto the vessel designated by the buyer at the port of shipment and within the specified period specified in the contract, and notify the buyer in a timely manner. The ship's side is the dividing line. After the goods cross the ship's side during loading, the risk borne by the seller is transferred to the buyer.

How to calculate FOB charges?

FOB={{1-[tax refund rate/(1+VAT rate)]}×RMB price including tax}/spot purchase price

Formula analysis:

FOB = (RMB price including tax - tax refund income) / spot purchase price

Among them: Tax refund income = RMB tax-inclusive price × [tax refund rate/(1+VAT rate)]

but:

FOB = {RMB price including tax - {RMB price including tax × [tax refund rate/(1+VAT rate)]}}/spot purchase price

Spot buying price

In addition: If your product is subject to export tariffs, the FOB price is calculated like this.

FOB USD price = [FOB RMB price × (1 + tariff rate)] / USD spot purchase price

This is the end of the introduction to FOB costs in this issue. If you want to get more information about FOB costs, please pay attention to ~

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