1. Overseas warehouse cost structure
The overseas warehouse cost structure refers to a series of costs incurred by setting up a warehouse overseas. Overseas warehouses can be self-built warehouses or warehouses of third-party logistics service providers. Now let’s take the costs incurred by using overseas warehouses of third-party logistics service providers as an example.
Overseas warehouse costs are mainly composed of first-leg costs, handling fees, storage fees, last-leg freight, tariffs/VAT/miscellaneous fees.
(1) First-leg costs: the costs incurred by the seller to transport the goods to the destination of the overseas warehouse. The calculation method of the carrier’s costs is divided into air freight, sea freight bulk cargo, sea freight full container, local trailer, etc.
(2) Handling fees: warehousing fees, outbound fees, order processing fees.
(3) Storage fees: divided into off-season and peak season. Generally, the storage fees in the second half of the year will be higher.
(4) Last-leg freight: local delivery fees, such as FedEx, DHL, UPS, local postal services, etc.
(5) Tariffs/VAT/Miscellaneous Fees: Different companies charge for storage in different ways. Some charge by volume, some by weight. Generally, they charge by W/M, that is, they charge by the higher of the weight and volume of the goods. Tariffs in different countries are also different. For example, American countries only charge import tariffs, while European countries charge “import tariffs + VAT”, and Australia charges “import tariffs + VAT + additional taxes”.
2. Taxes
Taxes refer to a series of fees that must be levied on goods exported to a certain place in accordance with the import policy of that place. Tariffs usually refer to import tariffs, which are tariffs levied by the customs of a country (region) on imported goods and articles. The collection of import tariffs will increase the cost of imported goods, raise the market price of imported goods, and affect the amount of imported goods from abroad. Therefore, all countries (regions) use the collection of import tariffs as a means to restrict the import of foreign goods. The proper use of import tariffs can protect the industrial and agricultural production of the country (region), and can also be used as an economic lever to regulate the production and economic development of the country (region). Some countries or regions not only have import tariffs, but also some fees specific to the country or region.
Most imported goods in Russia are subject to 20% VAT, while food and children’s products are subject to 10% VAT, and high-tech products, cotton and medicines are exempt from VAT. In addition, some luxury goods, such as wine, cars, oil and jewelry, are subject to 25% to 90% consumption tax.
Note: The tariff rate refers to the proportion of the tax amount calculated when the tax is imposed on the object stipulated in the customs tariff.