Introduction
Customs can significantly affect the landed cos t of imports. By understanding how customs can affect landed cos t, importers can take steps to minimize these cos ts, such as using fre e trade agreements, working with a customs broker, and ensuring compliance with regulations.
Reducing transaction cos t of exports is essential for companies to increase competitiveness. Currency fluctuations can create a lot of uncertainty and unpredictability for exporters, and can lead to significant increases in transaction costs. By understanding how to reduce transaction cos ts, exporters can take steps to mitigate these risks and minimize the impact on their business and make their products more competitive in the global market.
Understanding Landed Cos t of Imports
· Calculation of landed cos t
· Factors that affect landed cos t e.g.
· Tariffs
· Duties
· Freight
· Insuran ce
· Delays
· Documentation
· Handling and Clearan ce fees
· Techniques for reducing landed co st e.g.
· Custom classification
· Negotiation
· Supplier selection
· Freight consolidation
Understanding Transaction Cos t of Exports
· Calculation of transaction cos t
· Factors that affect transaction cos t e.g.
oCurrency fluctuations
oInternational Payment Mechanism
oRupee Trade & Import / Export
oCompliance cos ts
oDocumentation fees
· Techniques for reducing transaction cos t e.g.
oHedging
oStreamlining export processes
oUsing fre e trade agreements
Advanced Strategies
· Incoterms and their impact on landed cos t and transaction cos t
· Managing risk in international trade
· Using technology to reduce cos ts and increase efficiency
Case Studies and Best Practices
· Real-world examples of companies successfully reducing landed cos t and transaction cos t
· Discussion of best practices and industry standards