Fob c2% nhavasheva port

Dear Sir,

I am Exporting agro commodity from Navasheva for the first time. The buyer asked me to give my best price "FOB C2% NHAVASHEVA port". So what exactly he is representing ?

1. To quote price including my or his commision ?

2. Shall i calculate 2% commision in USD or in INR then convert in USD ?

3. How will be the commision payment transfered if he includes the commision then how i have to transfer to overseas account.

4. Is there any service tax for overseas Export.

Thanks

Replies (1)

Dear Imran,

If you want to export something on FOB Navasheva terms, then the below heads to be included in the cost of the product

1. Actual cost of product

2.Your profit margin or commission

3. Transporation cost till Navasheva

4. All Navasheva port charges/ THC, Hanlding/ Lodinng unloading/ Customs clearance fee etc

 

Your Questions

1.. To quote price including my or his commision ?

Yes

2. Shall i calculate 2% commision in USD or in INR then convert in USD ?

Yes

3. How will be the commision payment transfered if he includes the commision then how i have to transfer to overseas account.

Your commission should be added in the FOB price, you will get payment of the same along with export payments

4. Is there any service tax for overseas Export

Service tax need to be paid for serivces which are rendered in India, but the service tax act  has provision for refund of service tax on exports

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