Packing, Crating, and Handling Costs for Foreign Military Sales Customers

摘要

Foreign Military Sales customers are charged a surcharge rate on the item selling price to compensate for the cost of packing, crating, and handling (PCH) at Army depots. The present surcharge rate is 3.5% on the first $50,000 and 1.0% on the remainder of the unit price. Regression analysis indicates the present rate is probably adequate to recover depot PCH costs. It is recommended that the depots should maintain records of accumulated shipment dollar values and that this data be used in future regression analyses to validate the PCH surcharge rate. Originator-supplied keywords include: Packaging, and Accessorial Surcharge.