Calaculate cost of goods is given as equivalent fob value

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Reference no: EM13839207

International Trade Practices

Assignment

You are trying to determine the best foreign source of some products you wish to eventually place on the Australian market.

Your task is to calculate each of the 8 sourcing option given below (you must clearly show your calculations):

1. The customs classification code (including the statistical code/unit) for each product listed below

2. The amount of duty payable on entering the product for home consumption (6 calculations - 3 products x 2 countries each) 3. The VoTI for each product for each country (6 calculations)

3. The total cost of each product at the end of the customs clearance process (6 calculations).

A completed Declaration (N10) form for the product that you have calculated to be the cheapest (1 only) in total (absolute numbers) is to be handed in with your work. You are to note the following facts in completing your task:

a. You do not have to worry about quarantine concerns or entry processing fees in this exercise

b. Freight costs are for transport form the country of origin to Melbourne Victoria Australia. In calculating the costs you will need to convert these to AUD. You must provide hard copy evidence of the foreign exchange rate source.

c. Cost of goods is given as the equivalent FOB value for customs purposes

d. You do not have the option of deferring GST

Product 1: Stapling machines

Origin Thailand Malaysia

Price THB 30 each MYR 3 each

Quantity 30,000 30,000

Freight costs to Australia USD 250.00 USD 235.00

Cargo Insurance costs AUD 35.00 AUD 45.00

Product 2: Aircraft seats

Origin Italy Germany

Price EUR 150.00 each EUR 185.00 each

Quantity 500 500

Freight costs to Australia USD 850.00 USD 1,150.00

Cargo Insurance costs AUD 195.00 AUD 200.00

Product 3: Poultry shears

Origin USA India

Price USD 9.00 USD 5.00

Quantity 50, 000 50,000

Freight costs to Australia USD 1,800.00 USD 1,000.00

Cargo Insurance costs AUD 400.00 AUD 350.00

Roberto Bergami © 2015.

Reference no: EM13839207

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