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Export Pricing And Costing.




Introduction

Pricing and costing are two different things and an exporter should not confuse between the two. Price is what an exporter offer to a customer on particular products while cost is what an exporter pay for manufacturing the same product.

Export pricing is the most important factor in for promoting export and facing international trade competition. It is important for the exporter to keep the prices down keeping in mind all export benefits and expenses. However, there is no fixed formula for successful export pricing and is differ from exporter to exporter depending upon whether the exporter is a merchant exporter or a manufacturer exporter or exporting through a canalising agency.

Determining Export Pricing

Export Pricing can be determine by the following factors:

  • Range of products offered.

  • Prompt deliveries and continuity in supply.

  • After-sales service in products like machine tools, consumer durables.

  • Product differentiation and brand image.

  • Frequency of purchase.

  • Presumed relationship between quality and price.

  • Specialty value goods and gift items.

  • Credit offered.

  • Preference or prejudice for products originating from a particular source.

  • Aggressive marketing and sales promotion.

  • Prompt acceptance and settlement of claims.

  • Unique value goods and gift items.

Export Costing
Export Costing is basically Cost Accountant's job. It consists of fixed cost and variable cost comprising various elements. It is advisable to prepare an export costing sheet for every export product.

As regards quoting the prices to the overseas buyer, the same are quoted in the following internationally accepted terms which are commonly known as Incoterm.

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What is New?

Date: 03-03-2015
RBI/2014-15/483 A.P. (DIR Series) Circular No.80
External Commercial Borrowing (ECB) Policy — Review of all-in-cost ceiling

Date: 03-03-2015
RBI/2014-15/484 A.P. (DIR Series) Circular No.81
Trade Credits for Imports into India — Review of all-in-cost ceiling

Date: 03-03-2015
Customs Notification No. 06/2015-Customs (ADD)
Seeks to extend the validity of Notification No. 01/2010-Customs dated 08-01-2010 for a further period of one year i.e. upto and inclusive of 07-01-2016.

Date: 02-03-2015
Notification No 113 (RE-2013) / 2009-2014
Addition of a new laboratory for Certification/ Grading of diamonds.

Date: 01-03-2015
Customs Notification No 27/2015 (NT)
Seeks to notify “resident firm” as class of persons for the purposes of section 28E of the Customs Act, 1962 so as to extend the scheme of Advance Ruling to Resident Firm.

Date: 01-03-2015
Central Excise Notification No 03/2015 CE (NT)
Seeks to amend Notification No. 49/2008-CE (NT), dated 24th December, 2008.

Date: 01-03-2015
Central Excise Notification No 04/2015 CE (NT)
Seeks to amend Chewing Tobacco and Unmanufactured Tobacco Packing Machines (Capacity Determination and Collection of Duty) Rules, 2010 notified vide Notification No. 11/2010-CE (NT), dated 27th February, 2010.

Date: 01-03-2015
Central Excise Notification No 05/2015 CE (NT)
Seeks to amend Pan Masala Packing Machines (Capacity Determination and Collection of Duty) Rules, 2008 notified vide Notification No. 30/2008-CE (NT), dated 1st July, 2008.

Date: 01-03-2015
Central Excise Notification No 06/2015 CE (NT)
Seeks to amend Cenvat Credit Rules, 2004.

Date: 01-03-2015
Central Excise Notification No 07/2015 CE (NT)
Seeks to amend Notification No. 35/2001-CE (NT) dated 26th June 2001 so as to simplify registration process.