(1) Price composition of export commodities
The price composition of export commodities mainly includes export costs, fees and expected profits.
a. Export costs
Export costs are the core of the entire price. They are the production costs, processing costs or procurement costs incurred by export enterprises or foreign trade units for the production, processing or procurement of their products for export.
b. Fees
The fees in export quotation accounting are divided into domestic fees and foreign fees. Domestic fees include packaging fees, warehousing fees, domestic transportation fees, certification fees, miscellaneous fees, commercial fees, taxes, operating and management fees, advance interest, bank fees, etc. Foreign fees include export freight and export insurance (CIF transaction contract). If the transaction is concluded at a commission-inclusive price, it also includes commissions.
c. Expected profits
Expected profits are the income of exporters and an important part of prices.
(2) Export quotation accounting
a. Cost accounting
For exporters who specialize in trade, the cost of goods is the purchase cost or the tax-inclusive cost, that is, it includes value-added tax. However, in order to reduce the cost of export goods and enhance the competitiveness of their products in the international market, many countries often adopt the practice of fully or partially refunding the value-added tax on export goods. When implementing the export tax rebate system, when calculating the price of export goods, the tax part of the tax-inclusive purchase cost should be deducted according to the export tax rebate ratio to obtain the actual purchase cost.
Actual purchase cost = tax-inclusive cost – tax refund income
Tax refund income = [tax-inclusive cost/(1+VAT)] x export tax refund rate
The formula for actual purchase cost is derived from this:
Actual purchase cost = tax-inclusive cost x [1-export tax refund rate/(1+VAT)] For example:
The ex-factory price of the product is RMB 10, and the VAT rate is 17%, then, the tax-inclusive cost = 10x(1+17%) = 11.7 yuan.
The tax-inclusive cost per unit of a certain product is RMB 28, including 17% VAT. If the product has a 13% tax refund for export, then the actual purchase cost per unit of the product = tax-inclusive cost x [1-export tax refund rate/(1+VAT)] = 28x[1-13%/(1+17%)] = 20.82 yuan/unit.
b. Freight Calculation
The transportation of import and export goods generally adopts ocean liner transportation. The calculation of liner transportation freight is divided into the calculation of piece goods and containerized goods.
The freight of piece goods consists of basic freight and surcharge, and the surcharge is generally charged as a certain percentage of the basic freight. The freight of containerized goods is divided into the following two different calculation methods according to LCL and FCL: LCL is calculated according to the basic rate of piece goods plus surcharge, and FCL is calculated according to the container rate.
When liner transportation is adopted, the booking party does not need to calculate the freight by itself, and can pay according to the liner transportation price.
c. Insurance premium calculation
When using CIF or CIP terms, the exporter needs to calculate the insurance premium. The calculation formula is as follows:
Insurance premium = insurance amount x insurance rate
Insurance amount = CIF price x (1 + insurance premium rate) CIF quotation = CNF/[1-(1+insurance premium rate) x insurance premium rate]
d. Commission calculation
In export quotations, sometimes the other party requires the inclusion of commissions, which is called commission-inclusive price.
Commission-inclusive price = net price/(1-commission rate)
e. Expected profit calculation
Profit is one of the three components of the export price. The determination of profit can be expressed as a certain amount or as a profit rate, that is, a percentage. When expressing it with a profit rate, attention should be paid to the calculation base. A certain cost can be used as the base for calculating the profit, or the sales price can be used as the base for calculating the profit.