Unit 3 Business Contract

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1 Unit 3 Business Contract

2 3.1 Export Price pricing considerations calculation of price
price including commission price with discount price adjustment clause understanding the price communication of price

3 3.1.4 Price with discount Discount Reasons for discounting:
a certain percent of price reduction, a special favor given by the exporter to the importer Reasons for discounting: To increase market competitiveness To get rid of stocked goods As a motivator for B to introduce goods into new markets As a compensation for settling disputes or previous orders

4 3.1.4 Price with discount Discount expressed in % or fixed number
USD200 per M/T CIF New York less 3% discount CIFD3 New York GBP200 per M/T EUR200 per unit CIF London including 1% discount Calculation Based on the contract value Discount = contract price x discount rate Actual price = contract price – discount = contract price x ( 1- discount rate )

5 计算实例 1、某商品单价为 USD100 per carton CIFC3 London 则CIF净价为多少？ 2、某商品单价为 USD100 per carton CFR Hamburg net 则CFRC5%为多少？ 3、某商品单价为 USD100 per metric ton CFR Hamburg less 2% discount, 则实际的单价为多少？

6 计算实例解答 1、净价=含佣价- 佣金= 含佣价×（1-佣金率） =100 ×（1-3%）=97 USD/CARTON 2、含佣价=净价/ （1-佣金率） =100/（1-5%） = USD/CARTON 3、折扣=发票金额×折扣率 =100 ×2% = 2 USD 实际单价为100-2=98 USD/METRIC TON

7 Fac price+ All other costs＋Expected profit
Conversion of Price Note: markup: percentage of the contract value R: Insurance premium rate Factory price Fac price+ All other costs＋Expected profit Exchange rate FOB price FOBC%/D% price CFR price CFRC%/D% price CIF price FOB 1-C%/D% CFR 1- (1+markup)xR + Freight + Insurance + Ocean Freight CIF CIFC%/D% price

8 Illustration 我某公司出口商品每件30美元CIFC3%纽约。试计算CIF净价和佣金各为多少？若对方要求将佣金提高到5%，我方应如何改报价格？

9 reference 1、净价=含佣价- 佣金= 含佣价×（1-佣金率） =30 ×（1-3%）=29.1 USD/PC
2、含佣价=净价/ （1-佣金率） = 29.1 /（1-5%） =30.63 USD/PC

10 3.1 Export Price pricing considerations calculation of price
price including commission price with discount price adjustment clause understanding the price communication of price

11 3.1.5 Price Adjustment Clause
fixed price contracts when goods are delivered, importers will pay the exact amount shown on the contract. the prices of goods stay constant flexible price contracts resource intensive commodity transactions economic environment is volatile to promote fairness, a price adjustment clause is necessary.

12 3.1.5 Price Adjustment Clause
Formula: P = P0 x ( A + B.M/M0 + C.W/W0) P = Final price at delivery P0 = Initial price at contracting A = % of (Overhead + Profit) in price B = % of Material in price C = % of Wage in price M = Final material price index at delivery M0 = Initial material price index at contracting W = Final wage index at delivery W0 = Initial wage index at contracting Note: A, B, C: % fixed by buyer and seller at contracting A+B+C = 100%

13 Illustration X company signed a contract to export two machines at an initial price (P0) of USD 5 million each. At the time of setting P0, the material price index (M0)was 110, the wage index (W0) was 120. The contract contained a price revision clause that allowed the final price to be set on delivery. At the time of delivery, the material price index (M) was 112, and the wage index (W) became 125. If the following ratios remained constant: A (the management fee and profit as a percentage of the price)=15% B (material cost as a percentage of the price) = 30% C (wage cost as a percentage of the price)= 55% What is the final price?

14 3.1 Export Price pricing considerations calculation of price
price including commission price with discount price adjustment clause understanding the price communication of price

15 3.1.6 understanding the price
出口盈亏额 = 出口净收入—出口商品总成本 export profit and loss= net export income - total export cost 出口盈亏率=出口盈亏额/出口商品总成本 High EPM means _______ profit

16 3.1.6 understanding the price
出口盈亏率 Export profit margin a ratio for measuring profitability of an export transaction Standing for how much profit can be generated for every unit of currency in cost Export revenue (FOB) – Export cost (FOB) Export Cost (FOB) Export Profit Margin 出口盈亏率 = X 100% Note: Figures calculated in exporter’s local currency FOB Price

17 3.1.6 understanding the price
出口换汇成本指某出口净收入一个单位的外汇所需要的人民币成本。(成品出口创汇率) Export cost for foreign exchange (ECFFE) Interpreting profitability with currency factor Standing for how many units of local currency the exporter should pay to make one unit of foreign currency

18 3.1.6 understanding the price
Export cost for foreign exchange (ECFFE) 出口商品总成本（人民币元） 出口换汇成本 = —————————————— FOB出口外汇净收入（美元） Export cost in Local Currency Export Revenue in Foreign Currency ECFFE =

19 3.1.6 understanding the price
We can see from the formula: suppose the ECFFE ratio fo a deal for a Chinese company in March 2008 was 6.5, and the exchange rate at that time was USD1=RMB 7.05. in order to earn 1 USD, the exporter had to pay 6.5 RMB From each USD, the Chinese exporter could make 0.55 RMB in profit. The the ECFFE is, the more profitable the transaction will be . lower

20 Illustration A company signed a contract to export clothing. Its export costs totaled RMB 8,000,000, and export revenue totaled USD 1,000,000. If the exchange rate was USD 1= RMB 8.2. Calculate: 1). Its export cost for foreign exchange. 2). Its export profit / loss rate.

21 Illustration X company signed a contract to export 1000 of USD20 per unit CIF New York. The total amount is USD 20000, including freight USD3000 and Premium USD200. The total purchase price is CNY100000, cost before export is 10% of the purchase price. The present foreign exchange rate of USD against CNY is 7. Q: What is the export profit margin and export cost for foreign exchange?

22 出口退税 含义:  出口退税是一个国家或地区对已报关离境的出口货物，由税务机关将其在出口前的生产和流通的各环节已经缴纳的国内增值税VAT或消费税CT等间接税税款退还给出口企业的一项税收制度。 含税价=购进价x 税率+购进价 =购进价x(1+税率)  退税额=购进价×退税率 = 含税价÷（1+增值税率）x退税率 注：此处“购进价”指不含增值税的出厂价。

23 采购价格核算 实际成本＝购进价（含税）+费用 – 退税 因此，实际成本＝退税后的总成本
例：某公司从工厂购进5000只玩具车，价格为每只15元，已知该商品增值税率为17%，退税率为13%。该笔业务总费用为1万元。请计算单位商品的实际成本。 解：实际成本＝ ÷ ÷(1+17%)x13%

24 采购价格核算 ∵实际成本+利润＝销售价 ∴实际成本＝销售价-利润
例：经业务磋商，国外客户能接受的价格为每件10美元FOB上海。当时银行汇率为每1美元等于8.0元。公司的预期利润率出口报价的5%。请计算我公司可接受的最高国内实际成本。 解：(10－10×5%) ×8＝76元

25 练习 某公司从工厂购进1000件商品，价格为每件100元，已知该商品增值税率为17%，退税率为13%。请计算单位商品的退税额。
解答：单位商品退税额＝100÷1.17×13% =11.11元

26 练习 A公司出口某商品，含税价为50元每件，征17%退13%。银行汇率为8：1。请计算：单位商品的不含税价为多少？单位商品退税额为多少？
解：不含税价＝50÷（1＋17%）＝42.735元 退税额＝不含税价×退税率＝42.735×13%＝5.56元

27 出口换汇成本＝出口总成本÷出口外汇净收入
出口总成本：指外贸企业为出口商品支付的国内总成本。它由以下几个基本因素构成： 进货成本＋国内费用-出口退税 出口外汇净收入：指出口外汇总收入扣除国外劳务费用等非贸易外汇后的外汇收入。（如FOB价） 出口换汇成本：指某出口净收入一个单位的外汇所需要的人民币成本。其计算公式为： 出口换汇成本＝出口总成本÷出口外汇净收入

28 练习 我某公司出口某商品1万公吨，国内收购价为1100元人民币/公吨（含增值税17%），另加其它费用10％，外销价为每公吨145美元FOB上海。该商品退税率为5%。当时银行汇率为8.27元每美元。试计算该商品的出口换汇成本和盈亏额。

29 reference 解：退税收入 = 购进价（含VAT）÷（1+增值税率）×退税率=5%*1100/1.17=47.01RMB
出口商品总成本（退税后）= 购进价（含税）+定额费用 – 出口退税收入 =1100*（1+10%）－47.01= 换汇成本=出口商品总成本÷FOB出口外汇净收入 = ÷145=8.02 RMB/USD

30 reference 解： 出口盈亏额＝145×8.27－1162.99＝36.16元
或：出口盈亏额=(8.27－8.02)×145＝36.25元 出口盈亏率=出口盈亏额÷出口商品总成本 ＝36.16÷ ＝3.1%

31 练习 某公司出口某商品200台，国内收购价为800元人民币每台（含17%增值税），总费用为6000元，外销价为每台100美元FOB上海。该商品退税率为13%。当时银行汇率为8.1元每美元。试计算该商品的出口换汇成本和盈亏率。

32 reference 解：退税收入 = 购进价（含VAT）÷（1+增值税率）×退税率=800*13%/1.17=88.89RMB
出口商品总成本（退税后） = 购进价（含税）+定额费用 – 出口退税收入 = ÷ = RMB 换汇成本=出口商品总成本/FOB出口外汇净收入（美元） =741.11/100=7.41 RMB/USD 出口盈亏率=（银行买入价-换汇成本）/换汇成本 =( )/7.41 =0.69 /7.41 =9.3%