Reference no: EM133185151

Question -

a. Real Drinks Beverages (RDB) is importing a shipment of alcoholic beverages which will comprise 15 pallets with 800 crates of stout, with each crate containing 48 bottles of 200 millilitres. The Stout being imported is new on the market and is of pure alcohol strength of 6%. Marine insurance acquired was $850.00USD. The invoice cost/FOB for Stout is $15,500.00USD. The broker informed that the Stout Import Duty (ID) rate is 40%, the Additional Stamp Duty (ASD) rate is 34% and the Special Consumption Tax Specific (SCTS) is $1230.00 JMD of pure alcohol of the total volume. The Customs Administration Fee (CAF) is $25,000.00 JMD.

Given that:

1. General Consumption Tax (GCT) rate is 15% or 20% depending on the purpose of importation

2. Standard Compliance Fee (SCF) rate is 0.3%

3. Environmental Levy (ENVL) rate is 0.5%

4. Stamp Duty is $100.00JMD

5. Exchange ratio is 1USD: 155JMD

6. Shipment arrives at the marine port with freight $5,500.00 USD

Calculate all duties and taxes payable and the total sum payable by RDB for this shipment. SHOW ALL WORKING.

b. Milky Way imports Frozen Cheddar Cheese. The shipment arrived at the seaport Cargo Warehouse. The shipping cost is $4,000.00USD for 3500 boxes of 100,000 cans with 100,000,000,000,000 milligrams of cheese. The broker informs for Cheese, the Import Duty (ID) rate is 5%, and the Dairy Cess rate is $8.2180 per Kilogram. The Common External Tariff Value for the shipment of cheese is $50,000.00USD. Given that:

1. General Consumption Tax (GCT) rate is 15% or 20% depending on the purpose of importation

2. Standard Compliance Fee (SCF) rate is 0.3%

3. Environmental Levy (ENVL) is rate 0.5%

4. Stamp Duty is $100.00JMD

5. Exchange rate is 1USD: 155JMD

6. Customs Administration Fee is $25,000.00JMD

Calculate all duties and taxes payable and the total sum payable by Milky Way for the shipments. SHOW ALL WORKING.