FOB prices for areca palm leaf plates

Free on Board(FOB) is the most commonly used incoterm in international trade. In FOB, the exporter is responsible for putting the consignment onto the vessel. The exporter takes care of all the fees associated with onboarding the cargo.

When you get a FOB quote, you may want to know the constituents of the FOB price. This article will show all the line items included in the FOB price for Areca palm products. The topics discussed here are for only areca palm products and will vary for other products.

Parties involved in FOB:

1) Exporter.
2) Transport company.
3) Container Freight Station (CFS)
3) Customs clearance agents.
4) Customs.
5) Fumigation servicing company.
6) Plant quarantine Testing Authority.
7) Operators at the port terminal.

Line items of FOB price for areca palm products:

Product Price:

The exporter gives you the price that includes product price with packing. It is known as Ex-Factory price.

Ex-Factory price = Product + Packing (At manufacturer facility)

Transport charges to CFS:

It is the amount exporter pays to move the goods from their warehouse to container freight station(CFS).

Container Freight station charges:

Consider it as a big warehouse, where customs inspection, testing, and container stuffing is done. As the cargo sitting here, CFS charges a fee for this.

CFS charges = Fee + GST.

Customs clearance charges:

Customs officer will inspect your consignment and will issue Let Export Order, so your shipment can be exported. Clearing agents will arrange for this inspection and charges a service fee for this.

Customs clearance charge = Service fee + GST.

Fumigation fee:

Fumigation is necessary to prevent the transfer of pests, termites, and other organisms to foreign territory. The fumigation service company does the fumigation and issues a certificate. The exporter must send this certificate to the importer along with other export-related documents.

Charges = Fumigation fee + GST.

PlantQuarantine Testing charges:

Plant quarantine organization of India does PQ testing and issues a Phytosanitary certificate. A random sample is pulled out and sent to the lab for testing to ensure that the product is pest-free.

Phytosanitary certificate charge = Testing fee.

Opening and Repacking charges:

While the consignment is sitting at the CFS, it is subjected to customs inspection and health testings. So, to inspect the packages will be randomly chosen and opened for inspection and to take a sample for testing.

The opened boxes have to be packed and sealed again before stuffing into the container.

Terminal Handling Charges(THC):

As the name implies, it is the handling fees at the seaport.
This charge includes moving the container within the port and putting the container on the ship using cranes.

BL Fee:

Bill of Lading fee is a documentation charge payable to the carrier at the time of releasing the Bill of Lading.

These are some other charges applicable and depends on the need at the time of export.

1) Survey charges.
2) Lashing charges.
3) Legalization charges.
4) Halting charges.

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