This article elaborates on the application of formula pricing in international trade, covering commodities such as yellow soybeans, iron ore, and copper ore. The content includes the definition of formula pricing, the conditions that must be met, import - related requirements, special considerations, and reminders.

(1) Definition:Formula pricing is a special pricing method. The buyer and the seller do not agree on the price of the goods with a specific and definite value in the contract, but determine the settlement price of the goods through an agreed - upon pricing formula. The settlement price is the total amount actually paid or payable by the buyer for the purchase of the goods.

(2) Application:With the development of international trade, the formula - pricing method has become increasingly popular, especially in long - term trade contracts. Commonly used goods with formula pricing include yellow soybeans, iron ore, copper ore, etc. This method helps to adapt to market fluctuations and protect the interests of both parties.

The formula - pricing method should meet the following conditions simultaneously:

(1) Written Agreement:The buyer and the seller need to agree on the pricing formula in writing before the goods arrive in the territory.
(2) Objective Conditions:The settlement price must depend on objective conditions and factors that neither party can control.
(3) Determination Period:The settlement price must be determined within 6 months from the date of import declaration of the goods.
(4) Compliance with Regulations:The settlement price must comply with the relevant regulations on transaction prices in the Measures for the Examination of Prices.

(1) Filing Requirements:Enterprises need to go through: Single Window → Customs Affairs Contact Sheet → Enter the formula - pricing filing module → Submit the Customs Filing Form for Formula - Pricing Contracts to the customs at the place of declaration of the first batch of goods or the customs at the enterprises filing place, and truthfully fill in the relevant filing information.Instructions for Filling in the Formula - Pricing Filing FormFiling Customs:The customs at the place of declaration of the first batch of goods or the customs at the enterprises filing placePricing Method:

According to the contract situation, you can choose A or B or C or D. When filling in the form, you can select from the drop - down form: A: Pricing formula, B: Component content, C: Quantity, D: Others. Multiple options are supported.

Pricing Formula:The agreed - upon pricing formula
Pricing Basis:The price index referred to in the agreed - upon pricing formula. A mandatory item. Manually fill in the name of the index. If there is none, fill in none.
Pricing Period:The date of the selected pricing standard in the pricing formula. A mandatory item. When filling in, you can select from the drop - down form: point price, daily average price, weekly average price, monthly average price, others. For point price, daily average price, weekly average price, and monthly average price, you need to manually fill in the specific time. For others, you can describe the pricing date in words (such as the average price of the month of the bill of lading date).
Settlement Period:The time to determine the settlement price. A mandatory item. If there is none, fill in none.
Commission:The labor remuneration paid by the buyer to the broker or agent for the imported goods. If there is, fill in the specific value or percentage. A mandatory item. If there is none, fill in none.
Discount:Refers to the price concession given by the seller to the buyer. If there is, fill in the specific number (in digital form). Note that the deduction ratio should be filled in. For example, if there is a 10% discount, fill in 10%. The system displays the percentage sign, and only 10 needs to be filled in. A mandatory item. If there is none, fill in none.
Other Expenses:Such as management fees, roll - over fees, etc. Optional item. Attachments: Upload contracts, situation descriptions, etc.
(2) Completion of the Customs Declaration Form:Specific requirements include filling in Formula - Pricing Confirmation and Provisional Price Confirmation, as well as filling in the formula - pricing filing number, etc.
(3) Tax Guarantee:When the settlement price cannot be determined, tax guarantee needs to be handled.

(4) Determination of the Settlement Price:Specific requirements include filling in Formula Pricing Confirmation and Provisional Price Confirmation, as well as filling in the formula pricing filing number, etc.

(3) Tax Guarantee:When the settlement price cannot be determined, tax guarantee needs to be processed.

(4) Determine the Settlement Price:Relevant materials shall be provided to the customs within 30 days after confirmation to handle the formalities for amending the customs declaration form.

(1) Timing of filing: Filing procedures must be handled before the import or domestic sales of the first batch of goods.
(2) Contract modification:For contract modification, filing change procedures need to be handled.
(3) Supplementary filing:If filing cannot be done in advance, supplementary filing procedures shall be handled.

a. Filing materials:Including the contract for imported goods, description of relevant elements of the pricing formula, etc.
b. Situations exempt from filing:When the settlement price of the goods can be determined, the Filing Form does not need to be submitted.

The adoption of formula pricing involves multiple links and requirements, covering aspects such as contract signing, import declaration, tax guarantee, etc. By understanding and mastering these details, enterprises and individuals can participate in international trade more effectively, ensure compliance and protect their own interests.