FOB Calculator
FOB Cost: -
Insurance: -
Freight: -
CIF Cost: -
Customs Duty: -
Bhutan Sales Tax: -
Total Cost (Before Profit): -
Profit: -
FOB Cost (Calculated): -
The FOB or Cost Calculator allows users to easily obtain the FOB value by simply inputting the customs duty rate, Bhutan Sales Tax (BST) rate, and the selling price of a commodity in the market place. Based on these inputs, it calculates various costs associated with importing goods such as FOB value or the cost, insurance, freight, CIF value, customs duty, Bhutan Sales Tax, and profit.
Insurance and freight are calculated at 1.125% and 20% of the FOB value, respectively. Customs duty is charged on the CIF value, while Bhutan Sales Tax is applied to the FOB value. A 20% profit is calculated on the total costs incurred, which include FOB, insurance, freight, customs duty, and Bhutan Sales Tax.
Here's a breakdown of how the calculator functions:
Input Values: The user is required to enter three specific values: CD rate, BST rate and SP.
1. CD (Customs Duty) Rate: This is the customs duty rate in percentage, which can be obtained from the Bhutan Trade Classification (BTC) and Tariff Schedule Book. The customs duty is calculated on the CIF value in the above calculation, as Bhutan customs still uses CIF value to determine customs duty. However, more accurately, customs duty should be calculated based on the transaction value, which refers to the price paid or payable.
2. BST (Bhutan Sales Tax) Rate: This percentage rate can be obtained from the Bhutan Trade Classification (BTC) and Tariff Schedule Book. Bhutan Sales Tax (BST) is levied on the FOB value.
3. SP (Selling Price) :The final price at which the product is sold.
Constants: The calculator utilizes fixed values for certain parameters:
Insurance and Freight Rate (IF Rate): This is set at a constant value of 0.21125, reflecting the average cost of insurance and freight.
Profit Margin: This is consistently set at 20% (0.20) of the total cost.
FOB Cost Calculation: The FOB cost (Free on Board) indicates the cost of the product without any shipping, insurance, customs duty, or sales tax. It is computed using the following formula:
FOB = Total Cost Before Profit / (1 + IF Rate + CD Rate * (1 + IF Rate) + BST Rate)
CIF Cost Calculation: The CIF cost (Cost + Insurance + Freight) is calculated by adding the insurance and freight charges to the FOB cost. The formula used is:
CIF = FOB * (1 + IF Rate)
Customs Duty Calculation: Customs duty is computed based on the CIF cost, using the formula:
Customs Duty = CIF * CD Rate
Bhutan Sales Tax Calculation: The sales tax is calculated on the FOB cost. The formula for this is:
Bhutan Sales Tax = FOB * BST Rate
Total Cost Calculation: The total cost (before profit) encompasses the CIF cost, customs duty, and sales tax, calculated as follows:
Total Cost = CIF + Customs Duty + Sales Tax
Profit Calculation: Profit is determined as 20% of the total cost using the formula:
Profit = Total Cost * Profit Margin
Displaying Results: After all calculations are completed, the results for FOB, CIF, customs duty, Bhutan sales tax, total cost, and profit are clearly displayed in a user-friendly interface on the webpage. This allows users to easily see and understand the costs involved in importing and selling an item, along with the projected profit margin.
Free on Board (FOB) is defined as the price paid for the goods plus the cost of transportation, loading, unloading, handling, insurance, and associated costs incidental to delivery of the goods at the port or place of export in the country of export to the country of Import.
Customs Value / Transactional Value / CIF Value imported goods is defined as the value of goods for the purposes of levying ad-valorem Customs duty.