The thought structure of this spreadsheet starts from the FOB price of goods, and adds the following considerations to the estimate:

1. The spreadsheet should necessarily consider a complete charge of some logistics tool (truck, container, etc.) and, if possible, project the estimated sale of a period (to be able to pro-rate the fixed costs by the quantity of goods to sell).
   
   
2. It is essential to have estimated the percentages of taxes that the product, province and country generate in local marketing.
   Pay special attention in cases that tax quotes or tax rate bases may be different between foreign trade operations and local sale operations.
   The first step for estimating the tax quotes and the tax rate bases is to have clearly determined the NCM of the product being analyzed.
   We refer to the Mercosur Common Nomenclature, known as item of custom tariff in Argentina.
   
   
3. As regards fixed costs, they should necessarily include the following:
   Monthly fixed fees of professionals hired or needed for the operation.
   Office or warehouse rental, as the case may be.
   Staff involved in the operation that cannot be outsourced (outsourcing is highly recommended when starting operations, so as not to increase fixed costs when the operations volume is not significant yet).
   Freight from the origin of the product to its delivery in the port of the local buyer.
   All expenses involved in the import process of the product in the target market (as the ones involved in the country of origin should share the FOB price of the product). In this item we should include, among others, customer officer's fees in the target country, local taxes for import licenses proceedings if it were the case, photocopies, international calls, etc.).
   
   
4. As regards variable costs, those that are only generated from the product sale in the target market. We should necessarily include the following:
   Commercial representative commission or salesman commission (Obs.: In case the seller has a fixed salary and commission, the fixed salary should be included in the item abovementioned.
   Local taxes (Obs.: In this case, as fiscal credits were not considered, if they existed, in the product import, the tax quote that should be considered is the total tax quote. To fully understand this, the spreadsheet methodology considers that all taxes are paid in the sale of the product, and not part in the import and the other part in the sale.
   If desired, the financial cost can be added by the partial advance payment of taxes at the moment of the product import.
   Special attention should be paid to the estimate method and the basis of calculation of each tax.
   As an example, in the Brazilian market, there are taxes that are based on the calculation of others. Some of them take as a basis of calculation the price of the product to be sold, and others, a basis in which the product price includes the composition tax.
   Percentages for product delivery in case the product delivery was not arranged by the fixed price of a truck cost (for example) but as the percentage of the product price transported.
   Percentage of outsourcing of any operation process that can be outsourced. (Obs.: In case that companies managed by Center Group, the cost of the variable part of the provision should be placed in this section, while the variable part, in Item 3).
   After having these data determined, it will be possible to give shape to the spreadsheet that will allow us to compare our product (with the price at which it will be sold in the target market) to a similar product in the same market.
   The spreadsheet can in turn be used in inverse order.
   From the local selling price of a competitor product to ours, we can disintegrate the variable and fixed costs (they may even be by estimate) and, in this way, determine the FOB price that a foreign product should have (our product) in order to compete with that product already in the local market where we aim to be.
   Center Group Int. offers a service for making the spreadsheet so that you can estimate the local selling price, and we can contribute, if it were the case, to determine fixed and variable costs of your project in the target market.