Brief Process of Re - export after Return of Exported Goods _ Shanghai Zhongshen International Trade Import and Export Agency Service

Formula: Export Insurance Amount = CIF Price × 110%Calculation of Insurance Premium:

Once the insurance amount is determined, the next step is to calculate the actual insurance premium. The insurance premium is calculated based on the insurance amount and a specific insurance rate. The insurance rate is determined by the insurance company according to factors such as the type of goods, mode of transportation, transportation route, and other risk factors.

Formula: Export Insurance Premium = Export Insurance Amount × Insurance RateHere, we assume that the CIF price of the goods to be exported by an enterprise is $50,000, and the insurance rate given by the insurance company is 0.75%. We will calculate according to the formulas mentioned above.

Calculate the export insurance amount:

Export Insurance Amount = CIF Price × 110%

1、确定CIF价格：
CIF价格 = $50,000

Export Insurance Amount = $50,000 × 110% = $55,000
Calculate the export insurance premium:
Export Insurance Premium = Export Insurance Amount × Insurance Rate

Export Insurance Premium = $55,000 × 0.75% = $412.50
According to the above calculations, for goods with a CIF price of $50,000, the export insurance amount should be $55,000, and the export insurance premium to be paid is $412.50. This insurance premium takes into account possible additional costs and expected profits, ensuring that if any losses occur during the transportation of the goods, the insurance compensation can cover the cost and expected profits.
When handling cargo transportation insurance, import and export enterprises have two main options:

Individual insurance for each shipment:

Insure separately for each export, which is suitable for enterprises that do not export frequently or have a small export volume. The advantage is high flexibility, and the disadvantage is that it may increase management costs due to the need to handle each shipment separately.

Sign a master open policy contract:
For enterprises with frequent export activities, they can sign a master contract with the insurance company to cover all export goods within a certain period. This method is more convenient to manage and usually enjoys more favorable insurance rates.
Correctly calculating the export insurance amount and premium is a key link to ensure the smooth progress of trade. Enterprises should choose the most suitable insurance handling method based on their own business volume and frequency to ensure that each trade can be properly protected against risks. In todays increasingly growing global trade, effective risk management and insurance protection can not only avoid potential economic losses but also enhance the market competitiveness of enterprises.
For enterprises with frequent export activities, they can sign a master contract with an insurance company to cover all export goods within a certain period of time. This method is more convenient to manage and usually enjoys more favorable insurance rates.

Correctly calculating the export insurance amount and costs is a key link to ensure the smooth progress of trade. Enterprises should choose the most suitable insurance handling method according to their business volume and frequency to ensure that each trade can be properly protected against risks. In todays increasingly growing global trade, effective risk management and insurance protection can not only avoid potential economic losses, but also enhance the market competitiveness of enterprises.