International Trade & MSME Export Pricing
Export FOB vs CIF Price & Incentive Calculator
Calculate export quotation pricing across Incoterms (EXW, FOB, C&F, CIF), foreign currency conversions, international freight, and Indian export incentives (RoDTEP and Duty Drawback).
1. Manufacturing & Ex-Works (EXW)
Production cost, export packaging, and manufacturer commercial margin.
Total units, pieces, meters, or kilograms in the shipment.
Direct raw materials, manufacturing labor, and factory overheads.
Seaworthy corrugated boxes, wooden fumigated pallets, moisture barriers.
Commercial profit margin desired before logistics additions.
2. Domestic Logistics & Port Handling
Inland freight and port charges to Indian port of loading.
Factory / ICD trucking to gateway port (e.g. Nhava Sheva, Mundra, Chennai).
Port gate-in, container stuffing, CHA customs clearance, shipping bill.
Phytosanitary, legalizations, Chamber of Commerce COO certification.
3. International Freight & Currency
Target currency, exchange rate, ocean/air freight, and marine insurance.
Spot or forward exchange rate for currency conversion.
Freight charges from Indian port of loading to foreign destination port.
Standard 0.25% - 0.50% on 110% of CIF value per ICC Clause A/B/C.
4. Indian Government Export Incentives
Statutory export benefits (RoDTEP & Duty Drawback) on FOB value.
Remission rate under 8-digit ITC-HS export code.
Maximum allowable RoDTEP scrip per unit if notified.
All Industry Rate (AIR) customs duty drawback percentage.
Statutory drawback cap per unit if specified in drawback schedule.
Export Quotation Summary
- FOB Indian Port Quote
- $ 30,057.80 ($ 6.01/unit)
- FOB Value in INR
- ₹26,00,000.00
- Total Export Incentives (RoDTEP + DBK)
- + ₹1,04,000.00 (4% on FOB)
- Total Export Realized Profit
- ₹5,24,000.00 (20.15% Margin)
Consignment Cost & Yield Breakdown
Clear itemization from factory floor to overseas port.
- Base Manufacturing & Packaging:
- ₹21,00,000.00
- Manufacturer Commercial Markup:
- + ₹4,20,000.00
- Domestic Freight & Port THC/CHA:
- + ₹80,000.00
- International Ocean/Air Freight:
- + ₹1,73,000.00 ($ 2,000.00)
- Marine Insurance (110% CIF):
- + ₹10,717.31
- RoDTEP Export Scrip (2.5%):
- ₹65,000.00
- Duty Drawback Cash Rebate (1.5%):
- ₹39,000.00
- Effective Net Cost / Unit (after incentives):
- ₹379.20
Incoterms Price Comparison Schedule
Standard Incoterms 2020 quotation rates in USD and INR for contract negotiation.
| Incoterm | Commercial Scope | Total (USD) | Unit (USD) | Total (₹ INR) | Unit (₹ INR) |
|---|---|---|---|---|---|
| EXW | Ex-Works (Factory Gate, buyer arranges all transit) | $ 29,132.95 | $ 5.83 | ₹25,20,000.00 | ₹504.00 |
| FOB | Free On Board (Loaded on ship at Indian port) | $ 30,057.80 | $ 6.01 | ₹26,00,000.00 | ₹520.00 |
| C&F / CFR | Cost & Freight (Includes ocean freight till foreign port) | $ 32,057.80 | $ 6.41 | ₹27,73,000.00 | ₹554.60 |
| CIF | Cost, Insurance & Freight (Full delivery + 110% marine insurance) | $ 32,181.70 | $ 6.44 | ₹27,83,717.31 | ₹556.74 |
Frequently asked questions
What is the difference between FOB and CIF in international export pricing?
Under FOB (Free On Board), the Indian exporter is responsible for all costs and risks until the cargo is loaded onto the ship at the Indian port (e.g. Nhava Sheva or Mundra). The foreign buyer pays for international ocean freight and marine insurance. Under CIF (Cost, Insurance & Freight), the exporter arranges and pays for international freight and marine transit insurance up to the foreign destination port.
Why is Marine Cargo Insurance calculated on 110% of the CIF value?
Under international maritime practice and Incoterms 2020 rules, cargo insurance must cover the full CIF contract value plus an additional 10% representing the buyer's anticipated commercial profit or incidental handling losses. The statutory formula is: CIF = (FOB + Freight) / (1 - 1.10 × Insurance Rate).
What is the RoDTEP scheme and on what value is it calculated in India?
The Remission of Duties and Taxes on Exported Products (RoDTEP) scheme reimburses embedded central, state, and local levies (such as electricity duty, VAT on transportation fuel, and stamp duty) that are not refunded through GST. It is calculated as an eligible percentage of the Free On Board (FOB) value of exported goods, subject to statutory per-unit value caps.
How does Duty Drawback (DBK) benefit manufacturing exporters?
Under Section 75 of the Customs Act, Duty Drawback rebates the customs duties and central excise paid on imported raw materials or packaging used in manufacturing goods for export. Exporters claim the All Industry Rate (AIR) on their Shipping Bill, and the rebate is directly credited to their bank account.
What is the GST treatment on export consignments from India?
Under Section 16 of the IGST Act, exports of goods and services are classified as 'Zero-Rated Supplies'. Exporters can either export under a Letter of Undertaking (LUT) without paying IGST and claim a full refund of unutilized Input Tax Credit (ITC) on domestic purchases, or pay IGST and receive an automatic refund from Customs upon filing the shipping bill.
How should an exporter hedge against foreign exchange rate fluctuations?
Exporters typically incorporate a 2% to 3% currency risk buffer into their initial CIF quotation. For firm contracts with 60 to 90 days credit terms, exporters utilize Forward Exchange Contracts or export credit lines under RBI's EDPMS framework to lock in the conversion rate with their authorized dealer bank.