FOB Price = { [1 - (Export Rebate Rate / (1 + VAT Rate)) ] × RMB Tax-Inclusive Price } / Spot Exchange Rate This formula takes into account export tax rebates, VAT, and currency exchange rates, ensuring accurate profit margins for the seller. FOB (Free On Board), which is often called "FOB Shipping Point" or "FOB Port of Shipment," is one of the most used Incoterms in international trade. The seller is responsible for all costs and hazards until the items are put onto the ship at the port of shipment, according to FOB agreements. The. The most widely used export pricing methods are EXW (Ex Works), FOB (Free On Board), CIF (Cost, Insurance, and Freight), and DDP (Delivered Duty Paid). Get an instant quote on FreightAmigo and make trade easier! Discover how to accurately calculate FOB prices to optimize your shipping costs and avoid. FOB price determines who covers shipping costs and who bears the risk when goods are in transit — here's what buyers and sellers need to know. An FOB (Free on Board) price is the amount a seller charges to manufacture, pack, and deliver goods to a designated departure point such as a port or. This guide from HiSourcing breaks down the 9 cost components inside a FOB price, shows you the exact formula to calculate it, compares FOB vs. DDP on the same product, and walks you through a real example from Yiwu to Los Angeles.