Another part of the cost of foreign trade commodity quotation——tax refund income

Release time 2020-05-18 11:25:01 69 times viewed
In the foreign trade business, the price consists of three parts: cost, expense and expected profit. Among them, when the manufacturer quotes for export commodities, in addition to the cost of the product, there is another cost-tax refund. Tax rebate is a national policy to reduce the export costs of export enterprises.



A foreign trade clerk from a factory chatted with me before and said that he encountered a terminal customer asking for price. After he reported the price, the customer replied that the price was more expensive than the foreign trade company. He said that the foreign trade company has been working with foreign customers before. The price reported to the foreign trade company is 7% profit on the basis of cost. After 2% of profits, why do customers still think the price is expensive? Obviously, he did not take into account the cost of the tax refund when quoting.

Actual purchase cost
How do foreign trade companies quote? After the foreign trade company generally obtains the tax-included fare from the factory, it will directly deduct the tax refund income to calculate an actual purchase cost. This actual purchase cost is the real price bottom line of the foreign trade company, and then based on the company's actual operating situation, consider some management costs, profits, etc. to quote.

Because of the fierce price competition of homogeneous products, many suppliers will give this tax refund subsidy to customers when quoting, deducting this cost, so that their prices are more advantageous and can be reported lower. In other words, the actual purchase cost is the tax-included purchase price minus the tax refund income. The formula for tax refund income is: tax-excluded price x tax refund rate.

Among them, there is one point that needs to be paid attention to regarding the tax rebate rate of commodities, let's take a look together.

Tax refund rate
At the time of customs declaration for the same product, if different HS codes are used, the tax rebate rate will be different. Maybe the purchase price is about the same, but in the end, the price of other suppliers can be reduced by 2% on the basis of the original price so as to get more orders. Don't underestimate this 2% price margin, maybe this is the key to our victory over our competitors.

So it is very important that we have enough knowledge about our products. During customs declaration, if the customs code has multiple options, you can choose a HS code that is more suitable for your product and determine our final tax refund rate. Of course, before choosing the HS code for customs declaration, it is best to check with the customs / customs broker to see if this product can be declared with a certain code. In principle, the customs code of the product selected for customs declaration must be approved by the customs, which can avoid a lot of unnecessary troubles, such as: being considered by the customs as fraud tax.