Commercial Cost Calculator — L/C Bank Charges & Export Fees
Estimating commercial banking charges and L/C processing fees ensures that financial overheads are accounted for when calculating net garment export margins.
What is Commercial Cost in Garment Export?
Estimating commercial banking charges and L/C processing fees ensures that financial overheads are accounted for when calculating net garment export margins.
Formula
Total Commercial Cost = (Total Order FOB Value × L/C Commission %) + (Order FOB Value × Bank Interest %) + Freight Forwarding & Clearing Fees
How to Calculate
Apply bank L/C commission rate and negotiation interest rate to total order FOB value, then add fixed documentation and custom clearing fees.
Example
FOB Order = $100,000, L/C Commission = 1.5% ($1,500), Bank Negotiation = 2.0% ($2,000), Forwarding = $350 → Total Commercial Cost = $3,850 (3.85% of FOB).
Frequently Asked Questions
L/C advising and confirmation fees, bank document negotiation charges, customs C&F agent fees, Certificate of Origin issuance, and bill of lading (B/L) processing fees.