Calculating Export Tariffs, Ro-Ro Shipping & CIF Pricing for Korean & Japanese Vehicles

CIF Pricing & Tax Regimes for Automotive Exporters

When exporting vehicles from South Korea and Japan to global markets, vehicle pricing requires precise breakdown of FOB purchase cost, ocean freight, and customs clearance:

1. **FOB (Free on Board):** Vehicle acquisition cost in KRW / JPY plus local transport to Incheon, Busan, or Yokohama port.
2. **CIF (Cost, Insurance, and Freight):** Total delivered port price factoring marine insurance, Ro-Ro roll-on roll-off shipping, and destination port tariffs.

Commercial dealers and corporate export desks need instant programmatic calculations of total landed cost.

The Calculation Formula

export interface ExportPriceBreakdown {
  grossEur: number;
  isVatDeductible: boolean;
  netEur: number;
  vatEur: number;
  customsDutyEur: number;
  shippingEstimateEur: number;
  totalCifPriceEur: number;

export function calculateExportPriceBreakdown( grossEur: number, isVatDeductible: boolean, destinationCountry: "NON_EU" | "EU_B2B" = "NON_EU" ): ExportPriceBreakdown { const GERMAN_VAT_RATE = 0.19; const netEur = isVatDeductible ? grossEur / (1 + GERMAN_VAT_RATE) : grossEur; const vatEur = isVatDeductible ? grossEur - netEur : 0; // Example standard EU export tariff: 10% duty on CIF value const shippingEstimateEur = 1200; // Average RoRo shipping const customsDutyEur = destinationCountry === "NON_EU" ? (netEur + shippingEstimateEur) * 0.10 : 0; return { grossEur, isVatDeductible, netEur: Math.round(netEur), vatEur: Math.round(vatEur), customsDutyEur: Math.round(customsDutyEur), shippingEstimateEur, totalCifPriceEur: Math.round(netEur + shippingEstimateEur + customsDutyEur) }; } ```