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Case: The customer is importing electronic goods from Argentina to Namibia, having a value of NS10 000.00. He will also pay a freight cost NS 2000.00 to bring the goods from Argentina to Windhoek, Namibia. According to the Harmonised System, this transaction attracts the custom duties of 30%. The import tax currently charged by Namibia is 16.5%.
a) Calculate the total cost of this transaction?
b) The customer just realised that South Africa is offering the same electronic goods that the he wants to import to Namibia at the value of NS 16 000.00, and the transaction has incoterm DDP. Calculate the savings or extra costs to be incurred if the customer decides to buy goods from South Africa?
c) Advice on which supplier should be considered by the customer based on the information provided above?
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