Costing of Export Goods

Basically Export cost depend various kinds of type.Exporting of goods and products has long been a key growth indicator for Bangladesh businesses and the economy as a whole. But here try to descried how many cost affected to export another country from Bangladesh.

In this article, we'll explore the challenges and solutions of exporting for companies who face an uncertain future in this deeply tumultuous financial climate.

If you need only Costing of Exporting Goods please go down:-

Transportation Costs

Paying for freight companies to forward your goods to you is a critical part of your exporting costs, are you going to use road, rail, sea, or air? 

• Road

Low cost and extensive road networks are available. Next day and timed deliveries are available and you can track your goods if you need to. Road transport is relatively safe.

However, the downsides of using road transport include breakdowns, traffic, borders, motorway toll charges, fuel charges, and the inconvenience of overland transport for long distance freight.

• Rail

Another cost-effective method where your goods are delivered in bulk alongside many others'. Rail links in abroad are excellent, routes are competitive and fast, as well as being environmentally friendly (compared to other modes).

The risks of using rail include inflexible rail routes, breakdowns and track maintenance, and industrial action by unionized staff. Also, you will need to forward on the goods from freight rail stations to their final destination.

• Sea

For goods further afield, shipping freight by sea can be the only cost-effective method available. This has the benefit of allowing you to ship high volumes of goods and using shipping containers that can easily be forwarded by roads from the docks.

However, there are certain risks posed by sea freight, for example, it can be exceptionally slow, tracking your goods can be difficult, bad weather can delay scheduling, insurance costs can easily get out of control, and you will need to pay for additional port and taxes.

• Air

By far the quickest method of receiving your imported goods, especially over very long distances such as South East Asia and Australia, and security is by far the best of all methods of transport.

As this is the quickest and safest way to export goods, it also lends itself to being the most expensive. Additional costs might include airport taxes, fuel, currency surcharges and additional transport from the receiving airport.

Some of the key factors to consider when choosing your method of transport include:

• How big and how heavy are the goods you want to export? (size and weight affect price)
• Speed of delivery
• Value of the goods

• Warehousing, Port and Inspection Fees

It is often necessary for your exported goods to be subject to customs warehousing, where fees usually apply. A warehouse will hold your goods before your pick up. Be aware of late collection and storage fees, often payable prior to collection.

• Export Duties

This is mainly the VAT you will be expected to pay on most export. Your VAT will be calculated on the costs of the goods, i.e. commission, packing, transport and insurance. Although it may still be possible to reclaim the VAT paid on your VAT return.

Other export duties can vary according to your particular commodity codes, if you register for an EORI number, and if you need to obtain an import license for certain goods.

• Inspection Charges

This can vary from country to country; often quality inspection needs to be independently verified. It can pay to ensure quality inspection takes place prior to shipping and arrival. 

• Agent Fees 

These are usually contained in your freight charge, but sometimes they are not. You will need to pay for an arrival agent to arrange warehousing before your logistics provider collects and transports on.

The Financial Pressures Small Businesses Experience When Exporting  

There are also a host of costs associated with exporting to different countries and economic zones, including:

• Setting up local company offices

Can always open up your own local branch, although this can be costly and a lengthy process which often involves creating a new business in the exporting country. More often than not companies will employ an overseas sales agent. 

• Overseas sales agent 

An overseas sales agent will act on your behalf in the local market, both arranging sales and ensuring local legal requirements are adhered to. They will take commission, but will know their marketplace and act as your man on the ground. 

• Using an overseas distributor 

The other option is using a distributor who will take the responsibility of your product once it enters the foreign country. This means you only deal with them and not the end customer or market. 

• Packaging & labeling 
• Make sure your packaging is suitable for your export market; it must comply with local regulations.

This is especially relevant when health and safety standards are to be complied with. Errors will be costly. Consider technical regulations and product liability.

Using the correct labeling can ensure your exports reach their destination with the minimum of hold ups or delays. Mislabeled items are the number one cause of delays for freight forwarding companies. 

• Insurance

Having insurance for your goods while in transit is essential for you to ensure that you are not taking any risks with your product. Whether you charge your customer for this or not, it is imperative that your goods are fully insured for their entire journey. 

• Taxes

Depending on your product and your shipping destination, a number of taxes might be charged to your consignment. 

• Transportation

Always make sure that you use a freight forwarding company that has full liability insurance. You also need to make sure that their drivers and operators licences are able to cover your particular type of goods or product. 

• Chasing Payment 

• Getting paid is essential and there are always risks when you suffer from late international payments.
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This means credit control and credit risks need to be prioritized. Credit checks can mean assessing the political economic and currency exchange rates, altogether.

Solution : 1

Fist of all now your goods ready for export . Here Intercoms is FOB so, you will pay only transport cost factory to board. Then procedure have some particular step for solution export cost. So, as well as Transport, Custom Charge, C&F Charge, Others. Step by Step by I try to solved actual how much money will pay for export purpose. 

Seem that your export FOB value $ 10,000.00 Item: T-Shirt, Qty: 8000 pcs.

Transport + Customs Duty + C&F Cost + Others = Grand Total is export cost.
15,000/= + 00/=10,000+10,000/= = 35,000/= without CM

Here mention basic concept for understanding. Cost will be tolerance +- by various step.