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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: 20-05-2016
Circular No. 19 /2016 -Customs
Regarding allotment of Warehouse Code for Customs Bonded Warehouses

Date: 20-05-2016
Circular No. 20/2016 -Customs
Clarification regarding transitional provisions relating to Duty Free Shops, Ship Stores, Airline Stores & Diplomatic Stores

Date: 20-05-2016
Service Tax Notification No. 26/2016 (ST)
Seeks to amend Notification No. 25/2012- Service Tax dated 20.06.2012

Date: 19-05-2016
Customs Notification No. 77/2016 (NT)
Rate of exchange of conversion of the foreign currency with effect from 20th May, 2016

Date: 19-05-2016
RBI/2015-16/401 A.P. (DIR Series) Circular No.70
Money Transfer Service Scheme - Submission of statement/returns under XBRL

Date: 19-05-2016
RBI/2015-16/402 A.P. (DIR Series) Circular No.71
Rupee Drawing Arrangement - Submission of statement/returns under XBRL

Date: 19-05-2016
Notification No. 19/2016-Customs (ADD)
Seeks to amend notification No. 40/2012 -Customs (ADD) dated 30th August, 2012, so as to amend, for the purposes of levy of Anti-Dumping Duty on imports of 'Metronidazole' originating in, or exported from China PR, the name of the Exporter from 'M/s Hubei Hongyuan Pharmaceutical Co., Ltd' to 'M/s Hubei Hongyuan Pharmaceutical Technology Co., Ltd'.

Date: 19-05-2016
Customs Notification No. 34/2016
Seeks to further amend notification No. 96/2008-Customs dated 13.08.2008, so as to carry out the following changes: to omit 'Samoa' and 'Maldives' from the list of countries eligible for preferential tariff under the said notification; to amend the name of 'Republic of East Timor' as 'Democratic Republic of Timor-Leste'.

Date: 19-05-2016
Central Excise INSTRUCTION
Need for timely forwarding proposal for fresh appointment/extension of tenure of SPPs handling CBEC cases before the Subordinate Courts/Courts of Session and High Court

Date: 18-05-2016
DGFT Notification No. 08/2015-2020
Amendment in export policy of edible oils.



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