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March 18, 2025 · The Bloomfield Team

How to Quote International Manufacturing Work

International customers represent a growing share of RFQ volume for American manufacturers, driven by reshoring trends, supply chain diversification, and the quality reputation of U.S. precision manufacturing. Quoting this work requires understanding cost components that domestic quotes never touch: currency exchange risk, international shipping and customs, export compliance, and payment terms that span 60 to 120 days across borders.

Shops that treat international quotes the same as domestic quotes consistently underquote the work and discover the hidden costs after the PO is signed. The margin erosion on a single international job quoted without proper cost accounting can run 15% to 25% below the domestic equivalent.

Currency Risk and How to Price It

If the customer requests pricing in their local currency, the exchange rate between the quote date and the payment date becomes a variable that directly affects your margin. A quote denominated in euros at EUR 1.08 to the dollar that gets paid 90 days later when the rate has moved to EUR 1.12 costs you roughly 3.7% in margin on the entire job. On a $100,000 order, that is $3,700 that disappeared between the handshake and the bank deposit.

Three approaches manage this risk. The simplest: quote in USD and make the customer bear the exchange risk. Many international buyers accept this, especially from American manufacturers with strong quality reputations. The second: quote in the customer's currency but include a 3% to 5% currency buffer in the price. The third: use a forward contract through your bank to lock in the exchange rate on the day you accept the PO. Forward contracts cost 0.5% to 1.5% of the transaction value, which is far cheaper than the downside risk of an unfavorable rate move.

Shipping and Incoterms

Incoterms define who pays for shipping, insurance, and customs clearance. The two most relevant for manufacturers are FOB (Free on Board) and DDP (Delivered Duty Paid). Under FOB, your responsibility ends when the goods are loaded onto the carrier at the port of origin. Under DDP, you are responsible for all costs through to the customer's receiving dock, including import duties, customs brokerage, and local delivery.

FOB is the safer position for a manufacturer quoting international work for the first time. The customer handles their own import logistics, and your quote only needs to include freight to the port or airport of departure. DDP quotes require you to estimate import duties (which vary by product classification and destination country), customs brokerage fees ($150 to $400 per shipment), and local freight in a country where you may have no logistics experience.

Air freight for precision machined parts typically runs $4 to $8 per kilogram for standard service and $8 to $15 per kilogram for expedited. Ocean freight is cheaper per kilogram but adds 4 to 6 weeks of transit time. Factor shipping costs explicitly in the quote rather than bundling them into the part price, so the customer sees exactly what they are paying for.

Export Compliance

Certain manufactured goods require export licenses or are subject to the Export Administration Regulations (EAR) or the International Traffic in Arms Regulations (ITAR). Defense-related components, certain precision instruments, and items with dual-use applications may be controlled. Shipping a controlled item without proper authorization carries criminal penalties.

Before quoting international work, verify the export classification of the parts. The Bureau of Industry and Security (BIS) maintains the Commerce Control List, and the State Department's Directorate of Defense Trade Controls manages the U.S. Munitions List. If the parts you manufacture fall under either list, factor the compliance cost and timeline into your quote. Export license applications can take 30 to 90 days.

Payment Terms and Collections Risk

Domestic manufacturers typically work on Net 30 terms. International customers often request Net 60 or Net 90, and the collection timeline can stretch further due to cross-border banking processes. A wire transfer from a European bank to a U.S. account takes 2 to 5 business days and carries fees of $25 to $50 per transaction.

For new international customers, consider requiring a letter of credit or a deposit of 30% to 50% with the PO. Letters of credit provide bank-guaranteed payment upon presentation of shipping documents, eliminating collection risk entirely. They cost 1% to 3% of the transaction value, and that cost is typically borne by the buyer.

For established international relationships, open account terms with credit insurance provide a balance of customer convenience and risk protection. Export credit insurance through providers like Euler Hermes or Coface covers 85% to 95% of receivable value for 0.5% to 1.5% of invoice value.

Building the International Quote

An international quote includes every element of a domestic manufacturing quote plus five additional line items: currency adjustment (if quoting in foreign currency), freight to port or destination, export compliance costs, crating and export packaging (typically 2% to 4% of part value), and payment term costs (the carrying cost of extended terms or the cost of a letter of credit).

Presenting these costs transparently builds trust with international buyers. A quote that shows the part price separately from shipping, packaging, and compliance costs lets the buyer understand exactly what they are paying for and compare your pricing fairly against their other options.

International work carries complexity, but it also carries premium pricing. Buyers sourcing from American manufacturers are paying for quality, precision, and reliability. The shops that quote the work accurately and deliver consistently build international relationships that produce repeat orders for years. For a broader look at how quoting systems support this process, see our guide to AI-powered quoting.