Conversion Formula Between International Trade Quotations And Three Terms

International trade quotations

1. Commission: because a middleman introduces a business or buys on behalf of the seller, he must pay a certain fee, which is called a commission.

$100 per metric ton CIF New York includes 3% commission or $100 per metric ton CIFC3% New York.

2. commission payment

Commission is usually paid by the exporter to the middleman after payment is received.

3. discount: discount (Discount) means that the seller gives the buyer a percentage discount at the original price, that is, giving the price a reasonable discount. $150 per metric ton CIF London includes 3/% discount or $150 per metric ton CIFD3%

Two, the conversion methods and formulas between the three terms of trade in FOB\CIF\CFR are as follows:

1.FOB price converted to CFR price or CIF price.

(1) the formula of FOB price as CFR price:

CFR=FOB+F (Yun Fei)

(2) the formula for converting FOB price to CIF:

CIF= (FOB+F (Yun Fei)) (1 - premium rate (1 + insurance plus rate))

2.CIF price converted to FOB price or CFR price.

(1) the formula for converting CIF price into FOB price:

FOB=CIF-I (premium) -F (Yun Fei)

(2) the formula for converting CIF price into CFR price:

CFR=CIF-I (premium)

3.CFR price converted to FOB price or CIF price.

(1) the formula for converting CFR price into FOB price:

FOB=CFR-F (Yun Fei)

(2) the formula for converting CFR price into CIF price:

CIF=CFR (1 premium rate (1 + insurance plus rate))