5.4.1.1 Effective cost for procurement实际采购成本
Before you quote an Incoterms price to your customer,you need to know your cost,which differs depending on whether you are a manufacturer or a trading company.For a manufacturer,your total cost considers your production cost plus all domestic charges and fees for export.For a trading company,however,you have no production cost,but a procurement cost instead,plus all domestic charges and fees for export.And the tax refund system for export may complicate it a bit,often resulting in a different(often lower)effective cost for procurement than what you have paid for.
♦production cost:the cost to a manufacturer.
♦procurement cost:the cost to a trading company which procures goods from a manufacturer,pays the value-added tax,and gets the tax refund.
♦effective cost for procurement:the cost to the exporter once it gets the tax refund.