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  • Export Pricing and costing for Export Products.
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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: 29-09-2016
    Central Excise Circular No. 1049/38/2016-CX
    Revised Monetary Limits for adjudication of Show Cause Notice in Central Excise and Service Tax

    Date: 28-09-2016
    DGFT Public Notice No. 34/2015-2020
    Allocation of quantity for export of preferential quota sugar to EU under CXL quota.

    Date: 28-09-2016
    DGFT Public Notice No. 35/2015-2020
    Amendment in Public Notice No. 29/2015-20 dated 08.09.2016 and in Public Notice No. 27 dated 31.08.2016.

    Date: 28-09-2016
    DGFT Public Notice No. 36/2015-2020
    Inclusion of new Regional Office of DGFT at Belagavi, Karnataka in Appendix-1 A of Foreign Trade Policy, 2015-20

    Date: 28-09-2016
    Customs Instruction
    Discontinuation of practice of making manual debits on physical copy of Advance Authorizations registered at EDI Customs port

    Date: 28-09-2016
    Central Excise Notification No. 47/2016 CE (NT)
    Seeks to amend Notification No. 30/2014-CE (NT) dated 14th October, 2014

    Date: 28-09-2016
    Service Tax Notification No. 43/2016 (ST)
    Service Tax (Third amendment) Rules, 2016

    Date: 28-09-2016
    Service Tax Notification No. 44/2016 (ST)
    Seeks to amend Notification No. 20/2005-Service Tax dated 10th August, 2005

    Date: 26-09-2016
    Central Excise Notification No. 46/2016 CE (NT)
    Seeks to amend Notification No. 20/2016-CE (NT) dated 01.03.2016 [Central Excise (Removal of Goods at Concessional Rate of Duty for manufacture of Excisable and other Goods) Rules, 2016]

    Date: 26-09-2016
    Service Tax Notification No. 42/2016 (ST)
    Services by way of advancement of Yoga provided by entities registered under Section 12 AA of Income-tax Act, 1961.



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