5.3.4.3 Commission佣金

5.3.4.3 Commission佣金

Suppose you are a manufacturer,and have concluded a deal with the importer through a trading company as the middleman.In line with trade conventions,you need to pay a commission to the trading company for its service in the deal,the amount of which may or may not be indicated in the price quotation,depending on the circumstances.Should the importer ask it be indicated,your price quotation could be something like this:“USD 1000/MT,CFRC2,Seattle,USA”.Here,“C”stands for“commission”,and “C2”tells the importer that the commission payable to the middleman is 2% of the FOB price for each metric ton.From your perspective,you need to do a calculation that starts with your net price(the commission exclusive price)and the commission rate required by the middle man to arrive at the commission included price for quoting to the importer.The following formula shows you the procedures.

This formula is deducted from the following formula:

commission = commission included price × commission rate

net price = commission included price ×(1 - commission rate)