What Should Be Included in Delivered-to-Factory Cost?
Quick AnswerDelivered-to-factory cost should be calculated from the cargo value plus applicable freight, surcharges, local charges at both ends, customs duties and taxes, inland transport, financing and quality costs, with the responsible party clearly indicated.
Comparability
FOB port prices, CIF destination-port prices, DAP named-place prices, and the customer’s actual in-warehouse cost each have distinct boundaries. Before comparing two suppliers, align the currency, tax regime, volume, delivery schedule, and division of responsibilities.
Variables
Exchange rates, ocean freight, duties and terminal charges fluctuate; any cost worksheet must state the quotation date, validity and source. Publicly disclosed prices are for market reference only and do not constitute an automatic firm offer by RIOMI.