Pricing your export: EXW to FOB to CIF

01Start from your ex-works cost

Ex-works (EXW) is the cost of the goods packed for export at your gate, plus your margin. Export packing, labels and pallets are often more expensive than domestic packing — include them.

02Add costs up to the ship (FOB)

Inland transport to the port or ICD, CFS and terminal handling, customs broker fees, certificates (origin, phyto, inspection), bank charges and any inland insurance.

03Add freight and insurance (CFR, CIF)

Sea freight to the destination port gives CFR. Add marine insurance (commonly on 110% of the value) for CIF. Take a written freight quote with validity before you send a price.

04Worked example (illustrative numbers only)

One 20 ft container of 10,000 kg of a spice. These figures are invented to show the method — get real quotes for your product and lane.

• Goods + export packing + margin (EXW): ₹10,00,000
• Truck to port, CFS, broker, certificates: + ₹50,000 → FOB ₹10,50,000
• Sea freight: + ₹1,00,000 → CFR ₹11,50,000
• Insurance: + ₹5,000 → CIF ₹11,55,000
• Divide by 10,000 kg and convert at a conservative exchange rate to quote per kg.

05What to leave out and what to watch

Do not count on export incentives such as RoDTEP or drawback to make a loss-making price work; rates change and claims take time. Do not include IGST if you export under LUT. Keep a buffer for exchange-rate moves.