Quotation Scheme for Vacuum Flasks

I. FOB (Free on Board) Clause

(A) Cost Composition

  1. Product Cost: This is the basic price of the vacuum flasks on our independent website, which is composed of costs such as product research and development, production, and packaging.
  2. Domestic Transportation Cost: Responsible for transporting the vacuum flasks from our warehouse to the port of shipment, covering expenses like truck transportation and short-distance haulage. For example, if using a truck to transport the vacuum flasks from the warehouse in [Specific City] to the port of [Port Name], and the transportation cost per ton of goods is [X] yuan, assuming a batch of vacuum flasks weighs [Y] tons, then the domestic transportation cost is [X] × [Y] yuan.
  3. Export Customs Declaration Cost: The cost incurred when handling the export customs declaration procedures for the goods, including customs broker fees, document fees, etc., usually around [Z1] yuan per shipment.

(B) Calculation Method

FOB Total Price = Product Cost + Domestic Transportation Cost + Export Customs Declaration Cost

(C) Suitable Buyer Types

  1. Large Purchasers or Traders: Such buyers often have their own mature logistics and customs clearance teams and long-term cooperative freight forwarders at the port of destination. They can efficiently handle a series of processes such as international transportation, customs clearance at the port of destination, and inland transportation. By arranging these processes on their own, they can better control costs and logistics timeliness. For example, some global chain supermarket purchasers have rich experience in international logistics operations and expect to independently control transportation and subsequent processes.
  2. Buyers with Special Requirements for Transportation Costs and Routes: Some buyers have specific requirements for the mode and route of international transportation based on their own business layout or logistics strategies. For instance, they may have long-term cooperation agreements with specific shipping companies or hope that the goods are transported through specific transit ports. For such buyers, the FOB clause gives them the flexibility to arrange transportation on their own to meet their special needs.

 

II. DDP (Delivered Duty Paid) Quotation Scheme (Based on FOB)

(A) Additional Cost Composition (Added on the Basis of FOB)

  1. International Transportation Cost: The cost of transporting the goods to the port of destination by sea, air, or land. Taking sea freight as an example, according to different shipping routes and shipping companies, the freight for each 20-foot container is [Z2] yuan. If a batch of goods requires [M] containers, then the international transportation cost is [Z2] × [M] yuan.
  2. Customs Clearance Cost at the Port of Destination: Including tariffs, value-added tax, customs clearance handling fees, etc. The tariff is calculated according to the tariff rate of the destination country and the value of the goods. Suppose the tariff rate for vacuum flasks in the destination country is [W]%, and the value of the goods (product cost + international transportation cost, etc.) is [V] yuan, then the tariff is [V] × [W]%. The value-added tax is generally calculated according to the value-added tax rate stipulated by the destination country (assumed to be [U]%) and the value of the goods including the tariff, that is, the value-added tax is ([V] + [V] × [W]%) × [U]%. The customs clearance handling fee is usually around [Z3] yuan per shipment.
  3. Inland Transportation Cost at the Port of Destination: The cost of transporting the goods from the port of destination to the buyer's designated location, and the calculation method is similar to that of domestic transportation costs, which needs to be determined according to the distance and mode of transportation.

(B) Calculation Method

DDP Total Price = FOB Total Price + International Transportation Cost + Customs Clearance Cost at the Port of Destination (Tariff + Value-Added Tax + Customs Clearance Handling Fee) + Inland Transportation Cost at the Port of Destination

(C) Suitable Buyer Types

  1. Small Retailers: Such buyers usually lack international trade experience and professional logistics and customs clearance teams. Under the DDP clause, they only need to receive the goods at their designated location without having to worry about complex transportation and customs clearance processes, reducing the procurement risk and operation difficulty. For example, some small supermarket or boutique store merchants in the local area may not purchase a large quantity of vacuum flasks each time but hope to solve all import problems in a one-stop manner.
  2. New Buyers Unfamiliar with Logistics Processes: Buyers who are new to the import business of vacuum flasks and are unfamiliar with international logistics and customs policies of various countries. The DDP quotation allows them to clearly know the final cost, which is convenient for budgeting and cost control, and they don't have to worry about additional costs caused by customs clearance and other issues.

 

III. LDP (Landed Duty Paid, including Freight and Insurance from the Port of Shipment to the Port of Destination) Quotation Scheme (Based on FOB)

(A) Additional Cost Composition (Added on the Basis of FOB)

  1. International Transportation Cost (Including Insurance Premium): Including freight by sea, air, or land, as well as the insurance premium during transportation. The insurance premium is generally calculated as a certain percentage of the value of the goods. Suppose the insurance rate is [I]%, and the value of the goods (product cost + domestic transportation cost, etc.) is [V1] yuan, then the insurance premium is [V1] × [I]%. The calculation method of transportation cost is the same as the international transportation cost part in the DDP.
  2. Customs Clearance Cost at the Port of Destination: Similar to that in DDP, including tariffs, value-added tax, customs clearance handling fees, etc., with the same calculation method.
  3. Inland Transportation Cost at the Port of Destination: The same as the inland transportation cost at the port of destination under the DDP clause, determined according to the distance and mode of transportation.

(B) Calculation Method

LDP Total Price = FOB Total Price + International Transportation Cost (Including Insurance Premium) + Customs Clearance Cost at the Port of Destination (Tariff + Value-Added Tax + Customs Clearance Handling Fee) + Inland Transportation Cost at the Port of Destination

(C) Suitable Buyer Types

  1. Buyers Who Pay Attention to Goods Transportation Insurance: Some buyers are more concerned about the risks of goods during transportation. Under the LDP clause, we are responsible for purchasing insurance, which makes the buyers more at ease. For example, buyers of high-end vacuum flasks, with relatively high product values, hope that the risks during transportation can be fully guaranteed.
  2. Enterprise Buyers Who Require One-Stop Service and Have Specific Requirements for Transportation Insurance: Enterprises that purchase vacuum flasks for employee benefits or promotional activities may hope that suppliers can provide comprehensive services covering transportation insurance to simplify the procurement process. Such enterprise buyers usually have a large purchase quantity, and the LDP clause can meet their needs for convenience and risk control.