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Export price

Export price refers to the price of a certain product exported by one country to another country in normal trade. Price, that is, the price at which export operators sell products to import operators. There are generally three methods for determining the export price:

(1) If the imported product has an actual price paid or payable, that price shall be the export price.

(2) If there is no actual price paid or payable for imported products, or the import price cannot be determined, or the export price is unreliable due to joint or compensatory arrangements between exporters or third parties, Then the export price can be presumed on the basis of the price at which the imported product is first resold to an independent purchaser.

(3) If the product under investigation is sold exclusively to an independent purchaser or is not resold in the state in which it was imported, the import price may be presumed on a reasonable basis determined by the competent authority.

The specific calculation is as follows:

Price = cost + expense + profit

Calculation 1: Actual purchase cost

The actual purchase cost of goods = Purchase cost - export tax rebate amount = purchase cost %, the export tax rebate rate is 11%, what is the actual procurement cost?

The actual purchase cost of goods = purchase cost 1+17%-11%)/(1+17%)=15.4 yuan

The higher the tax rebate rate, the lower the actual purchase cost of the goods

Calculation 2: Export commodity costs< /p>

Export commodity costs = domestic costs + freight + insurance

1. Domestic costs: packaging fees, warehousing fees, domestic transportation fees, certification fees, port fees, commodity inspection and submission fees, Taxes, purchase interest, operating and management fees, bank fees, etc.;

2. Calculation of insurance premiums

Insurance premium = insurance amount * insurance rate = CIF (CIP) price *(1+insurance markup rate) *Insurance rate

Calculation 3: Expected profit

Profit amount = export cost * profit rate

Comprehensive export quotation Calculation

FOB price = export cost*(1+expected profit margin)/foreign exchange rate

=(actual procurement cost+total domestic expenses)*(1+expected profit margin)/ Foreign exchange rate

Xinliang Company wants to export 500 sets of stainless steel kitchenware, and the purchase cost of each set of kitchenware is RMB 180. The ocean freight for a 20-foot container via Shanghai to Cape Town is US$2,200, the value-added tax rate is 17%, and the rebate rate is 9%. Add 10% for all risks insurance, and the rate is 0.8%. The domestic freight for this batch of goods is RMB 2,000; the export inspection fee is RMB 100; the customs declaration fee is RMB 150; the port charges are RMB 600; and other business expenses are RMB 1,800. If the company expects a profit margin of 6% of the transaction amount. Please quote FOB price. (Note: 1 USD = 8 RMB)

Answer:

1. Actual purchase cost = 180* (1+17%-9%) / (1+17%) =166.15 yuan

2. Domestic expenses = (2001015601800)/500 = 9.3 yuan 3. FOB = (actual procurement cost + total domestic expenses) * (1 + expected profit rate)/foreign exchange rate

= (166.15+9.3)*(1+6%)/8

=23.25 US dollars

Dumping:

Dumping occurs when the products of one country enter the market of another country at a price lower than the normal value, thus causing damage to the competitive domestic industry of the other country.

The elements:

1. The product is sold at a price lower than the normal value or fair value;

2. Such low-price sales give Damage caused to the industry of the importing country includes substantial damage, substantial threat and substantial obstruction;

3. The damage is caused by low-price sales, and there is a causal relationship between the two.

Dumping margin

The extent by which the export price of an imported product is lower than its normal value is the dumping margin. The dumping margin shall be determined by comparing the weighted average normal value with the weighted average price of all comparable export transactions, or by comparing the normal value with the export price on a transaction-by-transaction basis. For the export price and normal value of imported products, various comparability factors that affect the price should be considered and compared in a fair and reasonable manner. Export prices vary greatly among different buyers, regions, and periods, and if it is difficult to compare according to the method specified in the preceding paragraph, the weighted average normal value can be compared with the price of a single export transaction.

According to the definition of dumping, if the export price of a product is lower than the normal price, it will be considered to be dumped. The difference between the export price and the normal price is called the dumping margin. Therefore, determining dumping must go through three steps: determining the export price; determining the normal price; and comparing the export price and the normal price.

Normal price usually refers to the comparable sales price of similar products in the exporting country under normal trade conditions. If the domestic price of the product is controlled, the normal price is often determined based on the export price of similar products from a third country.

Anti-dumping

For example, the U.S. government stipulates that when the CIF price of foreign goods is lower than the ex-factory price, the goods are considered to be dumped, and anti-dumping measures will be taken immediately. Although the anti-dumping issue is clearly stipulated in the General Agreement on Tariffs and Trade, in fact, each country goes its own way and still uses anti-dumping as one of the main means of trade wars.

The WTO's "Anti-Dumping Agreement" stipulates that if a member wants to implement anti-dumping measures, it must comply with three conditions: first, it must determine the fact that dumping exists; second, it must determine that it has caused substantial damage or substantial damage to the domestic industry. The threat of damage may cause substantial obstacles to the establishment of relevant domestic industries; third, it is necessary to determine the existence of a causal relationship between dumping and damage.

According to the definition of dumping, if the export price of a product is lower than the normal price, it will be considered to be dumped. The difference between the export price and the normal price is called the dumping margin. Therefore, determining dumping must go through three steps: determining the export price; determining the normal price; and comparing the export price and the normal price.

Normal price usually refers to the comparable sales price of similar products in the exporting country under normal trade conditions. If the domestic price of the product is controlled, the normal price is often determined based on the export price of similar products from a third country.

Different from initiating a countervailing investigation, the victim country of dumping has no obligation to consult with the member parties before initiating an anti-dumping investigation; when reviewing the impact of dumping on domestic industries, the dumping margin needs to be considered size and determine the dumping margin. The WTO stipulates that the dumping margin shall not exceed 2% of the import price, and the import volume of dumped products shall not exceed 3% of the imports of similar products, which is the minimum limit for a negligible dumping margin.

The final remedy for anti-dumping is to impose anti-dumping duties on dumped products. The amount of anti-dumping duties levied can be equal to the dumping margin or lower than the dumping margin.

Although the anti-dumping investigation has not ended, it has been preliminarily ruled that there is dumping and the damage caused by it, and to prevent dumping from continuing to cause damage during the investigation, all parties have been fully provided with information and published. Subject to the opportunity for comment, the injured member may take provisional measures.

Another remedy is a price commitment. If the exporter voluntarily makes a satisfactory commitment to modify prices or stop exporting at dumped prices, the investigation process may be suspended or terminated, and the relevant authorities will not take provisional measures or impose anti-dumping duties.

Similar to initiating countervailing investigation procedures, a member government should launch an anti-dumping investigation after receiving an application from a domestic enterprise or industry that has been harmed by dumped products. All parties must be notified of the initiation of an investigation. They include the member governments where the exporter is located, exporters or foreign manufacturers, importers of the products under investigation, industry associations, manufacturers of similar products in the importing country and their industry associations, etc. If there is insufficient evidence to show the existence of dumping and its damage, or the dumping margin or the quantity of dumped imports is lower than the minimum limit, the investigation should be terminated.

Under the WTO framework, only the government, not traders and industry, can take anti-dumping measures. Therefore, traders or industries in a country must initiate anti-dumping procedures through the government.

If a member whose exported products are under investigation is dissatisfied with the actions taken by the member that initiated the investigation, it can refer the issue to the WTO Dispute Settlement Body for resolution. In this case, the exporter must take such action through its home government.