Unit of competency Outline
Date retreived
22/07/2026 10:05 PM AWST
22/07/2026 10:05 PM AWST
Whilst all efforts are made to provide accurate and timely information from the relevant source/documentation, please be aware that the information supplied may not be the most current version. The accuracy of the detail has not been confirmed by the Department and therefore should not be relied upon without first confirming the contents.
Prepare business advice on export Free on Board Value
Prepare business advice on export Free on Board Value
Unit of competency
National Code
BSBINT407B
BSBINT407B
State Code
D0771
D0771
TGA Status
Replaced
Replaced
DTWD Status
Replaced
Replaced
State Implementation and Classification
Approved Date
20/07/2011
Field of Education
080311 - International Business
Original Release Date
20/07/2011
Nominal Hours
30
Description
This unit describes the performance outcomes, skills and knowledge required to accurately determine and prepare business advice on the export entry or declaration Free on Broad (FOB) Value on goods exported from Australia.No licensing, legislative, regulatory or certification requirements apply to this unit at the time of endorsement.
Notes
Elements and Performance Criteria
1. Identify relevant export invoice
- 1.1. Identify the buyer and seller
- 1.2. Identify the relevant contract and export invoice
- 1.3. Consider definitions and differences in definitions of FOB value in determining FOB value of goods being exported from Australia
- 1.4. Identify the International Commercial Terms INCOTERMS relevant to the contract
- 1.5. Identify the party to the sales contract responsible for Australian export formalities from INCOTERMS
2. Interpret invoice terms and currency
- 2.1. Identify the components that constitute the price, in Australian or foreign currency, paid or payable and appearing on the invoice
- 2.2. Identify INCOTERMS relevant to the invoice
- 2.3. Identify currency used
3. Adjust invoice price
- 3.1. Identify adjustments
- 3.2. Make additions and subtractions to the price
4. Calculate export FOB value, applying currency conversion principles
- 4.1. Apportion costs against exported goods using organisational requirements/policies/procedures
- 4.2. Apply appropriate rate of exchange
5. Finalise business advice on export FOB value
- 5.1. Complete advice on FOB value field on export entry or declaration
- 5.2. Check calculations for accuracy and verify as required
- 5.3. Retain and file completed documentation with relevant personnel in the enterprise
- 5.4. Pass relevant business advice on to the client
RANGE STATEMENT
The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.
Differences in definition of FOB value may include:
INCOTERMS definition of FOB, which states in part: 'This term can be used only for sea or inland waterway transport. If the parties do not intend to deliver the goods across the ship's rail, the FCA term should be used'
customs definition: 'The total free on board (FOB) value of the goods, including all costs incidental to the sale and delivery of the goods on to the exporting vessels/aircraft'
Australian export formalities may include:
A2 or B2 Licences, authorisations and formalities
Australian Harmonized Export Commodity Codes
Adjustments may include:
all costs that exclude international freight and insurance from the price including in the price all costs to bring the goods to the ship or aircraft side when exporting from Australia
Organisational requirements/policies/ procedures refer to:
factorisation where costs are proportioned over a line value (each line of the invoice for which there is a separate classification)
other relevant requirements outlined in policies and procedures for calculating FOB
The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.
Differences in definition of FOB value may include:
INCOTERMS definition of FOB, which states in part: 'This term can be used only for sea or inland waterway transport. If the parties do not intend to deliver the goods across the ship's rail, the FCA term should be used'
customs definition: 'The total free on board (FOB) value of the goods, including all costs incidental to the sale and delivery of the goods on to the exporting vessels/aircraft'
Australian export formalities may include:
A2 or B2 Licences, authorisations and formalities
Australian Harmonized Export Commodity Codes
Adjustments may include:
all costs that exclude international freight and insurance from the price including in the price all costs to bring the goods to the ship or aircraft side when exporting from Australia
Organisational requirements/policies/ procedures refer to:
factorisation where costs are proportioned over a line value (each line of the invoice for which there is a separate classification)
other relevant requirements outlined in policies and procedures for calculating FOB
EVIDENCE GUIDE
The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.
Overview of assessment
Critical aspects for assessment and evidence required to demonstrate competency in this unit
Evidence of the following is essential:
interpreting a range of export documentation to determine export FOB value as required for goods exported from Australia
documenting export FOB calculation as required by client
knowledge of legislation, codes of practice and national standards relevant to work role.
Context of and specific resources for assessment
Assessment must ensure:
access to an actual workplace or simulated environment
access to office equipment and resources
access to relevant workplace documents.
Method of assessment
A range of assessment methods should be used to assess practical skills and knowledge. The following examples are appropriate for this unit:
direct questioning combined with review of portfolios of evidence and third party workplace reports of on-the-job performance by the candidate
review of advice completed on FOB value field on export entry or declaration
oral or written questioning to assess knowledge of penalties and the infringement notice scheme as it applies to goods where the export FOB value is incorrect
assessment of business advice passed on to the client.
Guidance information for assessment
Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended, for example:
BSBINT408B Prepare business advice on the taxes and duties for international trade transactions.
The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.
Overview of assessment
Critical aspects for assessment and evidence required to demonstrate competency in this unit
Evidence of the following is essential:
interpreting a range of export documentation to determine export FOB value as required for goods exported from Australia
documenting export FOB calculation as required by client
knowledge of legislation, codes of practice and national standards relevant to work role.
Context of and specific resources for assessment
Assessment must ensure:
access to an actual workplace or simulated environment
access to office equipment and resources
access to relevant workplace documents.
Method of assessment
A range of assessment methods should be used to assess practical skills and knowledge. The following examples are appropriate for this unit:
direct questioning combined with review of portfolios of evidence and third party workplace reports of on-the-job performance by the candidate
review of advice completed on FOB value field on export entry or declaration
oral or written questioning to assess knowledge of penalties and the infringement notice scheme as it applies to goods where the export FOB value is incorrect
assessment of business advice passed on to the client.
Guidance information for assessment
Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended, for example:
BSBINT408B Prepare business advice on the taxes and duties for international trade transactions.
Replaces
| State Code | National Code | Title | Type |
|---|---|---|---|
| C7778 | BSBINT407A | Prepare business advice on export Free on Board Value | Unit of competency |
Replaced By
| State Code | National Code | Title | Type |
|---|---|---|---|
| AUM44 | BSBINT407 | Prepare business advice on export Free-on-Board Value | Unit of competency |
| State Code | National Code | Title | Type |
|---|---|---|---|
| D154 | BSB41107 | Certificate IV in International Trade | Qualification |