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 ~

<<:  What is Dream Pay? What products does Dream Pay have?

>>:  What are Google Ads? What are the advertising formats of Google Ads?

Recommend

What is LightInTheBox? How to open a LightInTheBox store?

In March 2007, LightInTheBox was officially launc...

Real.de--German e-commerce platform

Real.de was founded in 2017 and is sold in 30 cou...

Benefits of implementing SA8000 certification

A socially responsible company can benefit from b...

Brief introduction - social responsibility factory inspection standards

Child labor: Companies cannot support the use of c...

What is a Web retailer? What are the advantages of a Web retailer?

Web Retailer is the world's leading resource ...

What is Edison? What are its advantages?

What is Edisen? Established in 2017, Edisen Busin...

How has eBay adjusted its logistics policy during the global epidemic?

Before introducing eBay's logistics policy, l...

Create a big sale on eBay! How to choose products on eBay?

1. Find popular products Method 1: Search for bes...

Amazon launches new plan! And it supports traffic and conversion!

As the first major company to announce its goal o...

The significance of implementing HACCP certification

 As a brand-new food safety guarantee model that i...

What is Typeform? What are the features and benefits of Typeform?

Typeform turns data collection into an experience...

BSC factory inspection regulations on working hours

The BSC factory inspection regulations on working ...