Generators Price in Bangladesh: FOB Cost Breakdown for Buyers

An FOB price for generators from Bangladesh is not a single number to compare at face value. It is a bundle of cost lines that ends at one precise point: the set loaded on board the vessel at the named port of shipment. Under FOB (Free on Board), the seller delivers the goods loaded on board the vessel nominated by the buyer at the port of shipment, and risk transfers to the buyer at that point, with the seller responsible for transport to the port, loading, and export formalities.¹ A generating set, for this guide, is the combination described in ISO 8528-1:2018, which defines classifications for the application, rating and performance of generating sets consisting of a reciprocating internal combustion engine, an alternating current generator and associated controlgear, switchgear and auxiliary equipment.² This guide takes that bundle apart.

Why this matters for buyers and sellers

For a buyer, the risk in an FOB quote is usually a missing line. A quote that states only a total leaves the buyer unable to tell whether packing, inland transport, port handling, export documents, or loading were included, or whether a second quote includes the same items.

For a seller, the same missing lines create a different problem: a seller who includes inland transport and port handling, and a seller who prices the set alone, will look uncompetitive against each other even when goods prices are close. A line-by-line quote shows where the seller price ends and buyer costs begin.

The specification matters before any cost line is compared. ISO 8528-1 defines four rating classes, emergency standby power (ESP), prime power (PRP), limited-time running power (LTP) and continuous operating power (COP), each with its own load profile, annual hours and overload capability.³ A set priced for one duty is not the same offer as the same frame priced for another duty. Compare FOB totals only inside one rating class, one specification, and one named port of shipment.

Step-by-step: how it works

Work through an FOB quote in this order, and ask for any missing line in writing before comparing totals.

1. Fix the named port of shipment and the Incoterms version, for example FOB Chattogram, Incoterms 2020. Without a named port, inland transport and port handling cannot be compared.

2. Fix one specification per set: rating class, engine and alternator models, enclosure, control scope, destination voltage, frequency and phase, test scope, and packing description.

3. Ask for the FOB figure split into goods, inland transport, port handling, export clearance and documentation, and loading on board. If two lines are priced together, ask which two, and confirm that in writing.

4. Ask what packing is included in the goods line: packing type, package count, and whether packing is inside the goods line or charged separately.

5. Ask where inspection and testing sit: inside the goods line, as a separate line, or outside the FOB figure.

6. Confirm validity, currency, quantity per variant, and whether the figure is per set or per order.

7. Add the buyer side separately, outside the FOB total: ocean freight, marine insurance, destination port charges, import clearance and onward delivery.

The diagram below summarises the FOB chain, from the goods line to loading on board.

Costs, timelines and documents

Costs

The FOB figure is built from five lines:

• Goods: the price of the set for the specification in step 2. Ask whether the enclosure, control scope, standard manuals and packing are included, or charged separately.

• Inland transport: moving the finished, packed set from the factory or warehouse to the named port. It varies with distance, route and vehicle type, so a supplier far inland will show a different line from a supplier close to the port for the same goods price.

• Port handling: charges at the port before loading, such as terminal handling and storage arising from the delivery schedule. Ask which charges are included, because structures differ by terminal and cargo type.

• Export clearance and documentation: the export formalities the seller completes under FOB, and the documents listed below. Ask whether document and agent fees are inside this line or separate.

• Loading on board: loading the packed set on board the vessel nominated by the buyer, where charged separately from port handling. Some quotes combine the two lines, so confirm the structure before adding them, to avoid counting one cost twice or leaving it out.

The worked example below uses example figures only. No figure here is a market price, a supplier price, or a promise from any supplier. Confirm the real figure for each line in the supplier written quote.

Example figures: one set, one specification, FOB at the named port of shipment.

All figures in this table are example figures. The goods line is 90.00 percent of this example total, inland transport is 4.75 percent, port handling is 2.63 percent, export clearance and documentation is 1.75 percent, and loading is 0.88 percent, with rounding. A small line can still decide a comparison, because a quote that omits a 380 inland line will look cheaper by exactly that amount while delivering the same set.

A second example shows why the port and route matter even when the goods price does not change. Example figures: keep goods at 7,200, export clearance and documentation at 140 and loading at 70, but change inland transport to 620 for a longer route and port handling to 260 for a different terminal. The example FOB total becomes 8,290. The set and the goods price did not change, yet the total moved by 290 because two lines moved. Compare lines, not totals alone.

Timelines

Timelines follow the same chain logic. The stages are specification confirmation, production and packing, inland movement, port arrival and export clearance, and loading on board within the vessel schedule, and the longest stage decides the delivery date. A set ready at the factory is not yet an FOB delivery, because inland movement, port handling and the vessel schedule still stand between the factory and loading. Ask what happens if the nominated vessel is delayed or closes for cargo before loading, who bears port storage in that case, and how early the set must arrive at the port relative to the vessel schedule. Put both answers in the written quote.

Documents

Ask for the document list with the quote, and confirm who issues each document and when. For an export from Bangladesh, the Bill of Export documentation set includes the commercial invoice with a detailed description of the goods and signed by the exporter, the packing list with quantity, weight and packing information, the EXP form certified by an Authorised Dealer, the certificate of origin, the VAT registration certificate, and the Taxpayer Identification Number, with the export letter of credit, contract or purchase order as applicable.⁴ Confirm the exact set for your shipment with the supplier and, where needed, a customs adviser, because product-specific documents can apply in addition to the standard set.

For the generator order itself, add the specification sheet per model, the written quotation stating the FOB lines, the named port, validity, currency and quantity, the test record per serial number where agreed, the manuals for the exact combination supplied, and the packing list that matches the packages actually shipped. Check that company name, set description and quantity match across the quotation, invoice, packing list and shipping documents.

Bangladesh-specific rules and tips

Bangladesh is the sourcing location, not a single factory floor, so the FOB chain varies with where the set is built and which port it leaves from.

First, classify the set correctly before the FOB lines are priced. Electric generating sets fall under HS heading 8502, and the United Nations classification lists subheading 850212 for generating sets with compression-ignition engines of an output exceeding 75 kVA but not exceeding 375 kVA.⁵ Confirm the exact subheading for your set engine type and output with the supplier and, where needed, a customs adviser, because the subheading follows the machine and its output band, not the catalogue headline.

Second, state the destination supply, not the Bangladesh supply. Mains voltage in Bangladesh is 230 volts at 50 Hz.⁶ That figure describes the local mains, not your site. A set built for a different destination voltage, frequency or phase arrangement is a different variant, with its own goods line, even when the engine is the same. Write the destination voltage, frequency and phase into the specification sheet.

Third, read the FOB chain together with the export clearance stage. Goods cannot be loaded for export until the Bill of Export is submitted and approved, and the standard document set listed above must accompany it.⁴ Ask those questions before accepting the FOB total, because a document delay at the port can turn into a missed sailing and a storage charge.

Mistakes and red flags

The most common FOB mistakes are comparison mistakes, not arithmetic mistakes:

• Comparing FOB totals for different named ports, or for different rating classes. A cheaper total may simply be a different port chain, or a lighter duty.

• Comparing a goods-only price with a full FOB price. A price that excludes inland transport, port handling or loading will look lower by exactly the missing lines, not by a saving.

• Accepting a total without a line split. A single total cannot be checked, compared, or corrected when one line changes.

• Counting a line twice, where port handling and loading are combined in one quote and separate in another.

• Treating ocean freight as part of FOB. Under FOB the buyer arranges and pays the main carriage, so freight belongs in the buyer-side budget.

• Treating a listing price as an FOB quote. A listing may show a price basis without the line split, the port, or the validity, and only the written quotation binds the terms.

• Leaving the container question unasked. Where goods are handed to a container terminal days before loading, ask whether FOB or another term fits the actual handover, because the risk point under FOB sits at loading on board.¹

Pause on red flags rather than signing faster. A supplier that cannot name the port, split the total, state the packing, or list the export documents is offering an unpriced chain, not a lower price.

Checklist

Use this checklist before accepting any generator FOB quote:

• Named port of shipment and Incoterms 2020 stated in the quotation.

• One specification sheet per set, with rating class, engine and alternator models, enclosure, control scope, destination voltage, frequency and phase, test scope and packing.

• FOB total split into goods, inland transport, port handling, export clearance and documentation, and loading, with any combined lines identified.

• Packing type and package count confirmed, and packing placement confirmed as inside or outside the goods line.

• Test and inspection placement confirmed as inside the FOB figure, as a separate line, or outside it.

• Validity, currency, quantity per variant, and per-set or per-order basis confirmed.

• Export document set listed, with the issuing party and timing for each document.

• Vessel schedule, port arrival timing, and port storage responsibility in case of delay confirmed.

• Buyer-side budget kept separate: ocean freight, insurance, destination charges, import clearance and onward delivery.

• Company name, set description and quantity matching across the quotation, invoice, packing list and shipping documents.

How Exportain helps

Exportain is a marketplace that connects buyers with Bangladeshi suppliers, and its verification system is a document and photo review, not a factory inspection or a guarantee.⁷ Use the profile and badge information to shortlist, then run the specification and FOB line checks in this guide yourself. Browse Bangladeshi suppliers, read how supplier verification works on Exportain, and read MOQ meaning for the one related quantity question this guide does not cover: how a minimum quantity is counted.⁸

FAQs

What should I know first about generators?

Know the FOB point, the rating class, and the specification before asking about price. FOB ends when the set is loaded on board the vessel at the named port of shipment, with the seller handling transport to the port, loading and export formalities, and the buyer handling the main carriage from that point.¹ A generating set is an engine driving an alternator with its controlgear and associated equipment, classified under ISO 8528-1 by application, rating and performance.² State the duty and one specification per set, then ask for the split.

What are the typical costs and timelines?

There is no typical FOB figure that applies across generator ratings, specifications, factory locations and ports, so treat any single figure offered without a specification, a named port and a line split as unconfirmed. Costs break into goods, inland transport, port handling, export clearance and documentation, and loading, each confirmed in the written quote, with ocean freight, insurance and destination costs kept in a separate buyer-side budget. Timelines break into specification confirmation, production and packing, inland movement, port arrival and export clearance, and loading on board. Every money figure here is example figures only.

Which documents are needed?

The documents needed are the specification sheet per model, the written quotation stating the FOB lines, the named port, validity, currency and quantity, the test record per serial number where agreed, and the manuals for the exact combination supplied, together with the export set: the commercial invoice, the packing list, the EXP form, the certificate of origin, the VAT registration certificate, and the Taxpayer Identification Number, with the export letter of credit, contract or purchase order as applicable.⁴ Confirm who issues each document and when.

What are the most common mistakes?

The most common mistakes are comparing FOB totals for different ports, different rating classes, or different line structures, accepting a total without a line split, counting port handling and loading twice, and treating ocean freight as part of FOB. Keep the specification fixed, the port named, the lines split, and the buyer-side budget separate.

Next steps on Exportain

Start with one specification sheet per set, the named port of shipment, and the FOB line split you require. Post a free RFQ with those details, so suppliers can answer with a line-by-line FOB figure rather than a single total. Browse Bangladeshi suppliers to shortlist, and read how supplier verification works on Exportain to understand the badge behind a profile.