What does the English capital letter FOB stand for?

FOB is one of the commonly used trade terms in international trade. The full text of FOB is FOB (… named port of shipment), that is, FOB price, which is usually called FOB at the port of shipment.

According to this clause, the buyer is responsible for sending a ship to pick up the goods, and the seller shall load the goods on the ship designated by the buyer at the port of shipment stipulated in the contract and within the specified time limit, and notify the buyer in time. When the goods cross the ship's rail, the risk will pass from the seller to the buyer.

Under FOB conditions, the seller shall bear the risks and expenses, obtain the export license or other official documents, and handle the export formalities. When the transaction is concluded on FOB terms, the seller shall also provide a certificate at his own expense to prove that he has completed the delivery obligation as stipulated. If the certificate is not a transport document, the seller may provide assistance at the request of the buyer to obtain the bill of lading or other transport documents, and the risks and expenses shall be borne by the buyer.

Some countries encourage the use of CIF terms for export and FOB terms for import, which are insured or carried by domestic insurance companies and carriers.

According to the explanation, the term FOB is only applicable to sea and inland waterway transportation.

free on board

ex ship delivery

(... named port of shipment)

"Free on board (… named port of shipment)" means that the seller completes the delivery when the goods cross the ship's rail at the named port of shipment. This means that from now on, the buyer must bear all risks of loss or damage to the goods. FOB clause requires the seller to go through the customs clearance procedures for goods export.

This term is only applicable to sea or inland waterway transportation. If both parties do not intend to deliver the goods across the ship's rail, FCA terms should be used.

Seller's obligations

Buyer's obligations

A 1 provide goods that meet the requirements of the contract.

The seller must provide the goods that meet the requirements of the sales contract, commercial invoices or electronic messages with the same effect, and any other documents that may be required by the contract to prove that the goods meet the requirements of the contract.

B 1 payment of price

The buyer must pay the price according to the sales contract.

A2 licenses, other licenses and programs

The seller must obtain any export license or other official permission at his own risk and expense, and go through all customs formalities necessary for the export of goods when necessary.

B2 licenses, other licenses and programs

The buyer must obtain any import license or other official permission at his own risk and expense, and, if necessary, go through all customs formalities required for the import of the goods and transit through other countries if necessary.

A3 Transport Contract and Insurance Contract

A) contract of carriage

No obligation.

B) insurance contract

No obligation.

B3 Transport Contract and Insurance Contract

A) contract of carriage

The buyer must conclude a contract to transport the goods from the designated port of shipment at his own expense.

B) insurance contract

No obligation.

A4 delivery

The seller must deliver the goods to the ship designated by the buyer at the designated port of shipment within the agreed date or time limit and in accordance with the customary way of the port.

B4 Receiving goods

When the seller delivers the goods according to A4, the buyer must accept the goods.

A5 risk transfer

Except as stipulated in B5, the seller must bear all risks of loss of or damage to the goods until the goods cross the ship's rail at the designated port of shipment.

B5 risk transfer

The buyer must bear all risks of loss of or damage to the goods in accordance with the following provisions:

When the goods cross the ship's rail at the designated port of shipment; and

If the buyer fails to notify the seller according to the provisions of B7, or the vessel designated by the buyer fails to arrive on time, or fails to receive the goods, or stops loading before the time notified by B7, it shall be counted from the agreed delivery date or the expiration date of the delivery period, provided that the goods have been formally transferred to the contract, that is, they are clearly marked or otherwise determined as goods under the contract.

A6 cost department

Unless otherwise specified in B6, the seller must pay

All expenses related to the goods before they cross the ship's rail at the designated port of shipment; and

When customs formalities are required, the customs formalities fees required for the export of goods and all duties, taxes and other fees payable at the time of export.

B6 cost department

The buyer must pay.

All expenses related to the goods since they crossed the ship's rail at the designated port of shipment; and

All additional expenses incurred when the vessel designated by the buyer fails to arrive on time, or fails to receive the above-mentioned goods, or stops loading before the time notified by B7, or the buyer fails to send a corresponding notice to the seller according to the provisions of B7, provided that the goods have been formally transferred to the contract, that is, the goods have been explicitly put on hold or otherwise identified as the goods under the contract; and

All customs duties, taxes and other fees payable when the goods are imported, as well as the fees for customs formalities and the fees for transit of goods from other countries.

A7 notify the buyer.

The seller must give the buyer sufficient notice that the goods have been delivered in accordance with A4.

B7 notify the seller.

The buyer must give the seller sufficient notice of the name of the ship, the loading point and the required delivery time.

A8 Delivery voucher, transport document or equivalent electronic message.

The seller must provide the buyer with the usual documents at his own expense to prove that the goods have been delivered in accordance with A4.

Unless the documents mentioned in the preceding paragraph are transport documents, at the buyer's request and at his own risk and expense, the seller must give the buyer all assistance to obtain transport documents related to the transport contract (such as negotiable bills of lading, non-negotiable sea waybills, inland river transport documents or multimodal transport documents). If the buyer and the seller agree to communicate electronically, the documents mentioned in the preceding paragraph may be replaced by electronic data interchange messages with the same effect.

B8 Delivery voucher, transport document or equivalent electronic information.

The buyer must accept the delivery certificate provided in accordance with A8.

A9 Inspection, packaging and marking

The seller must pay the inspection fees (such as quality inspection, measurement, weighing and counting) required for delivery according to A4.

The seller must provide, at his own expense, the packaging (such as the mode of transportation and the port of destination) that the seller knew before signing the sales contract (unless the goods mentioned in the contract do not need to be packaged and shipped according to the relevant industry practices). Packaging should be properly marked.

B9 cargo inspection

The buyer must pay the cost of any pre-shipment inspection, except for the inspection forced by the relevant authorities of the exporting country.

A 10 other obligations

At the buyer's request and at the buyer's risk and expense, the seller must give the buyer all assistance to obtain any documents or electronic information with the same effect (except A8) issued or transmitted by the country of shipment and/or the country of origin, which may be needed by the buyer to import goods and transit in other countries when necessary.

At the request of the buyer, the seller must provide the buyer with the information needed for insurance.

B 10 other obligations

The buyer must pay all the expenses arising from obtaining the documents mentioned in A 10 or electronic information with the same effect, and compensate the expenses arising from the assistance provided by the seller.

FOB terminology explanation

Free on board (… named port of shipment), that is, free on board at the port of shipment (… named port of shipment). This term means that the seller delivers the goods to the ship designated by the buyer at the agreed port of shipment. According to the 2000 General Rules, this term can only be applied to sea and inland river transportation. However, if the parties to the contract do not deliver the goods across the ship's rail, it is more appropriate to use the FCA term. (A) the division of basic obligations of buyers and sellers

According to the international chamber of commerce's explanation of FOB, the basic obligations of buyers and sellers respectively. To sum up, it can be divided into the following categories:

1. obligations of the seller

(1) Deliver the goods to the ship designated by the buyer in a customary manner at the port of shipment within the time or period stipulated in the contract, and notify the buyer in time.

(2) Obtain an export license or other official approval documents at your own risk and expense. When it is necessary to go through customs formalities, go through all customs formalities required for the export of goods.

(3) bear all expenses and risks before the goods cross the ship's rail at the port of shipment;

(4) Provide the usual documents proving that the goods have been delivered to the ship at his own expense. If the buyer and seller agree to use electronic communication, all documents can be replaced by EDI information, which has the same effect.

2. The obligations of the buyer

(1) Obtain an import license or other officially approved documents at your own risk and expense. When necessary, go through all customs formalities for the import and transit of goods in other countries, and pay relevant fees and transit fees;

(2) Responsible for chartering or booking shipping space, paying freight, and giving full notice to the seller on the name of the ship, the loading place and the required delivery time;

(3) bear all expenses and risks after the goods cross the ship's rail at the port of shipment;

(4) Accept the relevant documents provided by the seller, accept the goods and pay the payment according to the contract.

3. Precautions:

1. The buyer must bear all expenses and risks of loss or damage of the goods from the place of delivery, that is to say, if the goods are in distress or encounter pirates at sea, it will be irrelevant to the seller, and the seller should not refuse to pay for the goods on this ground, so the seller can suggest the buyer to insure the goods.

2..FOB price includes all domestic charges. If there are many commodities or high profits, domestic expenses can be ignored. If the goods are short, we need to raise the price accordingly, because the unit cost has increased a lot. The unit cost mainly includes: inland freight (from the factory to the port or container warehouse), loading and unloading fees (especially some goods that cannot be mechanically loaded and unloaded), LCL miscellaneous fees, dock fees, submission fees and inspection fees.

("194 1 revision of American foreign trade definition" in FOB explanation.

There are six definitions of FOB in the revised American foreign trade definition 194 1, among which only "named loading port" is similar to the definition of FOB in Incoterms 2000. Therefore, the interpretation and application of FOB in the revised American foreign trade definition 194 1 is obviously different from the general international interpretation and application, mainly in the following aspects:

1. The American convention generally interprets FOB as delivery on a certain means of transport, and its scope of application is very wide. Therefore, when signing contracts with businessmen from the United States, Canada and other countries on the basis of FOB, the name of the port of shipment must be indicated, and the word "ship" should be added after FOB. If it is only "FOB San Francisco" and the word "ship" is omitted, the seller is only responsible for transporting the goods to any place in San Francisco, and is not responsible for transporting the goods to the port of San Francisco and delivering them to the ship.

2. In terms of risk division, the boundary is not the ship's rail at the port of shipment, but the cabin, that is, the seller shall bear all losses and damages before the goods are loaded into the cabin.

3. In terms of cost burden, it is stipulated that the buyer shall pay the expenses such as the seller's assistance in providing export documents and export taxes generated by export.

(c) FOB deformation

When the transaction is concluded on FOB terms, the seller shall be responsible for paying all the expenses before the goods are shipped. However, there is no unified explanation for the concept of "loading" in various countries, and who will bear all the expenses related to loading, and the customs or practices of various countries are not completely consistent. If liner transportation is adopted, the ship is responsible for loading and unloading, and the loading and unloading fee is included in the liner freight, which is naturally borne by the buyer responsible for chartering; However, if chartering a ship, the ship generally does not bear the loading and unloading costs. It is necessary to find out who should bear all the shipping costs. In order to explain the burden of freight, both parties often attach additional conditions to the FOB clause, which forms the deformation of FOB. Mainly includes the following contents:

1. Offshore berth terms (offshore liner conditions)

This deformation means that the freight is handled according to the convention of liner, that is, it is borne by the ship or the buyer. Therefore, through this modification, the seller will not bear the related expenses of shipment.

2. Free on board (FOB linked delivery)

It means that the seller delivers the goods to the place designated by the buyer at his own expense, and the expenses such as hoisting are borne by the buyer.

3.FOB loading (including FOB accommodation)

It means that the seller is responsible for loading the goods into the cabin and bearing the freight including loading and unloading fees. Accommodation fee refers to the cost of arranging and sorting goods after the cabin.

4. F.O.B. repair (including F.O.B. parking fee)

The seller is responsible for loading the goods into the cabin and bearing the freight including leveling fee. Leveling fee refers to the cost of leveling the bulk cargo loaded into the cabin.

In many standard contracts, FOBST(FOB Stowed and Trimmed) is often used to mean that the seller will bear all transportation expenses, including berth management fees and berth fees.

The above-mentioned FOB deformation is only to show who will bear the freight, and does not change the delivery place and risk division boundary of FOB. The 2000 General Principles pointed out that the General Principles did not provide any guidance on the words added after these clauses, and suggested that the buyer and the seller should make it clear in the contract.

Second, the interpretation of CFR terms

Cost plus freight (... specify the port of destination), that is, cost plus freight (... specify the port of destination). This term means that the seller must bear the cost and freight required to transport the goods to the agreed destination port. The cost here is equivalent to the FOB price, so the CFR term is based on the FOB price plus the usual freight from the port of shipment to the port of destination.

The 2000 General Principles pointed out that CFR is the only internationally accepted standard code for the term "cost plus freight", and the traditional term C&F (or C and F, C+F) should no longer be used.

In the General Principles of 2000, it is clearly stipulated that CFR clauses can only be applied to maritime and inland waterway transportation. If the parties to the contract do not use delivery across the ship's rail, the CPT term should be used.

(A) the division of basic obligations of buyers and sellers

According to the interpretation of CFR by the International Chamber of Commerce, the basic obligations of buyers and sellers can be summarized as follows:

1. obligations of the seller

(1) Obtain an export license or other officially approved documents at your own risk and expense, and go through all customs formalities necessary for the export of goods when necessary.

(2) Sign a transport contract to transport the goods from the designated port of shipment to the designated port of destination; Load the goods at the time and port stipulated in the sales contract and pay the freight to the destination port; Notify the buyer in time after shipment.

(3) Take all risks until the goods cross the ship's rail at the port of shipment.

(4) Provide the buyer with the usual transport documents. If the buyer and seller agree to use electronic communication, all documents can be replaced by EDI information, which has the same effect.

2. The obligations of the buyer

(1) Obtain an import license or other official approval documents at your own risk and expense, go through all customs formalities for the import of goods and transit through other countries when necessary, and pay related expenses and transit fees.

(2) bear all risks after the goods cross the ship's rail at the port of shipment.

(3) accept the relevant documents provided by the seller, accept the goods, and pay the payment according to the contract.

(4) Pay all expenses incurred in the transportation of the goods except the usual freight, as well as unloading fees including lighterage and dock fees.

(2) Matters needing attention in using CFR

1. The seller shall issue the shipping notice in time.

After the transaction is concluded according to CFR terms, the seller arranges transportation and the buyer handles freight insurance. If the seller fails to send the shipping advice in time, the buyer will not be able to handle the freight insurance in time, and even the freight insurance will be missed. Therefore, the seller must send the shipping notice to the buyer in time after shipment, otherwise, the seller shall bear the risks and losses of the goods in transit.

2. Be careful when importing according to CFR.

In the import business, when trading according to the terms of CF and R, because the shipment is arranged by foreign businessmen and we are responsible for insurance, we should choose foreign customers with good reputation and put forward appropriate requirements for the ship to prevent foreign businessmen from colluding with the ship, issuing false bills of lading, renting unseaworthy ships or forging quality certificates and certificates of origin. If this happens, we will suffer unnecessary losses.

(3) Deformation of carbon fiber composites

According to CFR terms, if the goods are transported by liner, the freight is paid by the seller of CFR contract, and the unloading fee at the destination port is actually borne by the seller. Commodities are usually transported by chartering. If it is a ship charter that does not charge loading and unloading fees, the buyer and the seller should specify in the contract who will bear the loading and unloading fees. In order to clarify the responsibilities, specific conditions can be added after the CFR clause, listing who will bear the unloading fee:

(1)CFR berth terms (CFR berth terms)

This means that the unloading fee is handled by liner, that is, the buyer does not bear the unloading fee.

(2) CFR Landed

This means that the unloading fee is borne by the seller, including the lighterage fee.

(3) C&F delivery

This means that the seller is responsible for lifting and unloading the goods from the cabin to the place where the hook reaches (dock or barge). If the ship can't dock, the expenses of renting the barge and unloading the goods from the barge to the shore shall be borne by the buyer.

(4)CFR FOB (CFR Bilge Delivery)

This means that after the goods arrive at the destination port, the buyer will open the cabin by himself and bear the expenses of unloading the goods from the bilge to the dock.

It should be pointed out that the additional conditions in CFR clause are only to clarify who will bear the unloading expenses, and the boundary between delivery place and risk division has not changed. The 2000 General Rules did not provide a recognized explanation for the additional conditions added after the terms, and it is suggested that the buyer and the seller agree through the terms of the contract.

The Chinese translation of CIF terms is cost, insurance and freight (named as the port of destination, whose original name is cost, insurance and freight (... specify the country of destination). The components of the price of goods include the usual freight from the port of shipment to the agreed port of destination and the agreed insurance premium, so the seller's obligations are the same as CFR terms. With regard to handling freight insurance and paying insurance premium for the buyer, according to general international trade practice, the insured amount of the seller should be 10% plus CIF price. If the buyer and the seller have not agreed on specific risks, the seller only needs to get the minimum amount. If the buyer requests war risk insurance, the seller shall take out the insurance at the buyer's expense. When the seller can do so, he should insure in the contract currency.

It should be emphasized that according to the term CIF, although the seller has arranged the transportation of the goods and handled the freight insurance, the seller does not undertake the obligation to ensure the delivery of the goods to the agreed destination port, because CIF is a term for delivery by shipment, not for delivery at the destination port, that is to say, CIF is not "CIF".

CIF (cost, insurance and freight) means that when the goods cross the ship's rail at the port of shipment, the seller completes the delivery.

CIF usually refers to FOB+ freight+insurance.

C & ampf is different from CIF, C & ampf: cost plus freight means cost plus freight, followed by the name of the destination port, which means that the freight should be counted to the destination port and the responsibility should end at the destination port.

C & ampf usually refers to FOB+ freight.

The seller must pay the freight and expenses required to transport the goods to the designated destination port, but the risk of loss or damage of the goods and any additional expenses caused by various events will be transferred from the seller to the buyer after delivery. However, under CIF conditions, the seller must also insure the buyer's goods against the risk of loss or damage in transit.

Therefore, the seller enters into an insurance contract and pays the insurance premium. The buyer should note that the CIF term only requires the seller to insure the minimum insurance. If the buyer needs higher insurance coverage, he needs to reach a clear agreement with the seller or make additional insurance arrangements by himself.

CIF terms require the seller to go through the customs clearance procedures for the export of goods.

This term is only applicable to sea and inland waterway transportation. If both parties do not intend to deliver the goods across the ship's rail, CIP terms should be used.

Seller's obligations

A 1 provide goods that meet the requirements of the contract.

The seller must provide the goods that meet the requirements of the sales contract, commercial invoices or electronic messages with the same effect, and any other documents that may be required by the contract to prove that the goods meet the requirements of the contract.

A2 licenses, other licenses and programs

The seller must obtain any export license or other official permission at his own risk and expense, and go through all customs formalities necessary for the export of goods when necessary.

A3 Transport Contract and Insurance Contract

A) contract of carriage

The seller must, at his own expense, conclude a contract of carriage in accordance with the usual terms and conditions, and transport the goods to the designated port of destination by a seagoing vessel (or a vessel suitable for inland river transportation as the case may be) that can usually transport the goods stipulated in the contract by the usual route.

B) insurance contract

The seller must insure the goods at his own expense in accordance with the contract, and provide the buyer with an insurance policy or other insurance certificates, so that the buyer or any other person who has an insurable interest in the goods has the right to claim directly from the insurer. Insurance contracts should be signed with reputable insurance companies or insurance companies, and in the absence of explicit agreement to the contrary, insurance should be insured according to the minimum insurance risk in the cargo insurance clause of the Association (London Underwriters Association) or other similar clauses. The insurance period shall be as specified in B5 and B4. At the buyer's request and expense, the seller shall cover war risk, strike risk, riot risk and civil commotion risk, if it can be covered. The minimum insured amount shall include the contract price plus 10% (i.e. 1 10%) and shall be in the contract currency.

A4 delivery

The seller must deliver the goods to the ship at the port of shipment within the agreed date or time limit.

A5 risk transfer

Except as stipulated in B5, the seller must bear all risks of loss of or damage to the goods until they cross the ship's rail at the port of shipment.

A6 cost department

Unless otherwise specified in B6, the seller must pay all expenses related to the goods until the goods have been delivered in accordance with A4; As well as the freight and all other expenses incurred in accordance with A3a), including the freight for loading the goods; And the insurance expenses incurred in accordance with A3b); And any unloading expenses paid by the seller at the agreed unloading port according to the contract of carriage; As well as the customs formalities required for the export of goods, all duties, taxes and other fees payable at the time of export, and the expenses paid by the seller for transit transportation of goods from other countries according to the provisions of the transportation contract.

A7 notify the buyer.

The seller must give the buyer sufficient notice that the goods have been delivered in accordance with A4 and any other notice required, so that the buyer can take the usual necessary measures to receive the goods.

A9 Inspection, packaging and marking

The seller must pay the inspection fees (such as quality inspection, measurement, weighing and counting) required for delivery according to A4.

The seller must provide the packaging required for the transportation arranged by him at his own expense (unless the goods described in this contract need not be packaged and shipped according to the relevant industry practices). Packaging should be properly marked.

A 10 other obligations

At the buyer's request and at the buyer's risk and expense, the seller must give the buyer all assistance to help him obtain any documents or electronic information with the same effect (except those listed in A8) issued or transmitted by the country of shipment and/or the country of origin, which may be needed by the buyer to import goods and transit in other countries when necessary.

At the request of the buyer, the seller must provide the buyer with the information needed for additional insurance.

B 1 payment of price

The buyer must pay the price according to the sales contract.

B2 licenses, other licenses and programs

The buyer must obtain any import license or other official permission at his own risk and expense, and go through all customs formalities for the import of the goods, and transit through other countries if necessary.

B3 Transport Contract and Insurance Contract

A) contract of carriage

No obligation.

B) insurance contract

No obligation.

B4 Receiving goods

The buyer must receive the goods when the seller delivers the goods according to A4, and receive the goods from the carrier at the designated port of destination.

B5 risk transfer

The buyer must bear all risks of loss or damage after the goods have passed the ship's rail at the port of shipment.

If the buyer fails to notify the seller in accordance with the provisions of B7, the buyer must bear all risks of loss or damage of the goods from the agreed date of shipment or the expiration date of shipment, provided that the goods have been formally transferred to the contract, that is, explicitly put on hold or otherwise identified as the goods under the contract.

B6 cost department

In addition to the provisions in A3a), the buyer must pay

All expenses after delivery according to A4; As well as all expenses incurred in transit before the goods arrive at the port of destination, unless these expenses should be paid by the seller according to the transportation contract; Unloading fees, including lighterage fees and dock fees, unless these fees should be paid by the seller according to the contract of carriage; And if the buyer fails to notify the seller in accordance with the provisions of B7, all the extra expenses incurred by the goods since the agreed date of shipment or the expiration of the shipment period, as long as the goods have been officially transferred to this contract, will be explicitly shelved or otherwise determined as the goods under this contract; As well as all duties, taxes and other fees payable when the goods are imported through customs formalities, as well as the fees for customs formalities and transit from other countries when necessary, unless these fees are included in the transportation contract.

B7 notify the seller.

Once the buyer has the right to decide the time of shipment and/or the port of destination, the buyer must give the seller sufficient notice.

A8 For delivery vouchers, transport documents or equivalent electronic information, the seller must immediately provide the buyer with the usual transport documents at his own expense, indicating that the goods have been shipped to the agreed destination port.

This document (such as negotiable bill of lading, non-negotiable sea waybill or inland waterway transport document) must indicate the contract goods, and its date should be within the agreed shipment period, so that the buyer can pick up the goods from the carrier at the port of destination. Unless otherwise agreed, the buyer should be able to sell the goods in transit to subsequent buyers through negotiable documents (negotiable bills of lading) or notify the carrier.

If there are multiple originals of the transport document, a full set of originals shall be provided to the buyer.

If the buyer and the seller agree to communicate electronically, the documents mentioned in the preceding paragraph may be replaced by electronic data interchange messages with the same effect.

B8 Delivery voucher, transport document or equivalent electronic message If the transport document provided in accordance with A8 is in conformity with the contract, the buyer must accept it.

B9 cargo inspection

The buyer must pay the cost of any pre-shipment inspection, except for the inspection forced by the relevant authorities of the exporting country.

B 10 other obligations

The buyer must pay all the expenses arising from obtaining the documents mentioned in A 10 or electronic information with the same effect, and compensate the expenses arising from the assistance provided by the seller.

At the request of the seller, the buyer must provide the information needed for insurance.

[Edit this paragraph] Conversion of ]FOB, CFR and CIF terms

1.FOB price converted into other prices CFR price =FOB price+foreign freight CIF price =(FOB price+foreign freight) /( 1- insurance premium × insurance rate)

2.CFR price is converted into other prices FOB price =CFR price-foreign freight CIF price =CFR price /( 1- insurance premium × insurance premium rate)

3.CIF price is converted into other prices FOB price =CIF price ×( 1- insurance premium × insurance premium rate)-CFR price of foreign freight =C IF price ×( 1- insurance premium × insurance premium rate).

Calculation of FOB price:

FOB={{ 1-[ Tax Refund Rate /( 1+ VAT Rate)] }× RMB tax-included price}/spot purchase price.

Formula analysis:

FOB= (RMB tax-included price-tax refund income)/spot foreign exchange buying price.

In which: tax refund income = RMB tax-included price × [tax refund rate /( 1+ VAT rate)].

Then:

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

FOB={{ 1-[ Tax Refund Rate /( 1+ VAT Rate)] }× RMB tax-included price}/spot purchase price.

In addition: If your product has export tax, the FOB price is calculated as follows.

Offshore USD price = [offshore RMB price ×( 1+ tariff rate)]/USD spot buying price.

When calculating the export price, why should the exchange rate use the spot buying price?

Exchange rate: the exchange rate used in foreign currency wire transfer, letter transfer or bill transfer business.

Generally, the exchange rate is higher than that of cash, because foreign currency cash cannot circulate in China.

Purchase price:

As long as dollars are not converted into RMB, accountants always convert them into RMB according to the middle price. If it is converted into RMB, the bank will calculate it according to the spot foreign exchange buying price.

The buying price is the price that the bank is willing to pay when collecting foreign currency.

FOB domestic expenses include: 1, processing and finishing expenses; 2, packaging costs; 3. Storage expenses (storage/rent, fire insurance, etc. ); 4. Domestic transportation costs (warehouse to wharf); 5. Certificate fee (including commodity inspection fee, notary fee, consular visa fee, certificate of origin fee, license fee, storage fee, etc.). ); 6. Freight (freight, lifting fee and barge fee, etc.). ); 7. Bank charges (discount interest, handling fees, etc.). ); 8. Estimated loss (loss, shortage, leakage, damage, deterioration, etc. ); 9. Posts and telecommunications fees (telegram, telephone, telegram, fax, email, etc.). ).