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Highlights about the commission system
Many exporters from different parts of the world have shown interest in joining with us and in exporting their products to us. Some time they do not understand the concept of commission system which is the most popular way of doing the fresh fruits and vegetables business in Dubai, Malaysia, Sri Lanka and many other countries. For the benefit of these prospective business partners we have listed the points of commission system as follows:
The commission system follows the market price at Dubai on the day of arrival of the goods. Prices can change daily . So, the exporter should be aware of the potential changes that can occur due to market dynamics. Prices usually drop due to surplus stock arriving at the market and each trader fighting with others to sell off the perishable goods faster than other traders. Prices can go up very fast when there is not enough products available . Sometimes Price fluctuations can occur due to change in government policies and several other reasons as well. The formula for success would be to keep continuously involved in the trade and average the Profit and Loss and not just quit after a few losses as it can lead to permanent losses.
This section explains about the expenses at Dubai market for 1 x 40 FCL reefer container.
All expenses are in AED the local currency of UAE. 1 AED = 3.678 USD.
This list does not include the commission , because commission is calculated based on the Final Sales invoice value
|Port to market||3840|
|Cont parking for 2 days||80|
|Cont cleaning fee:||25|
|Total in AED ( Dirhams )||4870|
To know more about the process to be followed by first time exporter to Dubai market please click on the button below
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