INCOTERMS
DDP, OLONGAPO CITY
IMPORT
FOB, JAPAN
IMPORT
1 X 20’ STC: ELECTRONIC PARTS
FOB - $ 65,000
FRT/ENTRY- $ 1,650
GCR - $ 2,500
DUTIABLE FREIGHT - $ 1,750
2 X 20’ STC: FRESH APPLES
CIF - $ 28,200
FRT- $ 1,300
INS/INV - $ 600
$ 600 vs $1,076 ( 28,200 - 1300 x .04)
DUTIABLE INS = $ 1,076
Commodity: Pesticide
FOB: $33,000
FRT/ENTRY= $360
GCR= $500
R/E= P52/$
FOB - $ 33,000
X 1.04
FRT - $ 360
X 52
DV = P 1,803,360
IT IS A TERM OF PURCHASE WHERE THE SELLER PAYS FOR THE FREIGHT AND INSURANCE AND THE RESPONSIBILITY OF THE SELLER IS TO DELIVER THE GOODS ON BOARD VESSEL AT THE COUNTRY OF EXPORTATION.
CIF
AS IMPORTER OF RATTAN MADE FURNITURE IN CEBU YOU WANT SELLER “A” IN TAIWAN TO QUOTE ON THE BASIS THAT THE OCEAN FREIGHT WILL NOT BE REFLECTED IN THE INVOICE. “A” HOWEVER WILL BE RESPONSIBLE TO PROCESS THE EXPORT DECLARATION (ED). WHAT IS THE APPLICABLE PURCHASE TERM, IF DELIVERY IS AT SELLER’S WAREHOUSE?
FCA, TAIWAN
8 X 40’ STC: IMPORTED RICE BY NATIONAL FOOD AUTHORITY
FOB - $ 10,000/ CTN
T. FRT- $ 7,000
DUTIABLE FREIGHT = $ 8,700
DOUBLE POINTS!!
4 X 20’ STC: BOTTLED SOJU FROM KOREA
(Buyer was able to secure a Certificate and Official Receipt to the Bureau)
CPT - $30,000/ CTN
TOTAL FRT- $ 20,000
LIP – P 92,000
EXCHANGE RATE- P 54.75/$
$ 1,680.37
Compute for the dutiable value of a butane with a CFR value of $ 21,900.00, having said to have $ 1,700.00 freight per bill of lading and $ 1,500.00 freight per invoice. Exchange Rate is P 52.325/$
CFR VALUE = $ 21,900
($ 1,500)
COST = $ 20, 400
x 1.04
+ $ 1,700
DV = P 1,299,079.7
SELLER IN TAGUM CITY DELIVERED THE GOODS TO CARRIER’S WAREHOUSE IN DAVAO CITY. BILL OF LADING SHOWS FREIGHT CHARGES AS “FRT COLLECT” AND WILL BE PAID BY IMPORTER UPON ARRIVAL OF GOODS IN NAGOYA. WHAT IS THE CORRECT INCOTERM FOR THE SHIPMENT?
FCA, DAVAO
awww, points not counted! (sisihin ang namili)
INVOICE SHOWS COST OF THE GOODS, OCEAN FREIGHT AND LOADING CHARGES TO VESSEL. COVERING B/L INDICATED FREIGHT CHARGES AS “FRT PREPAID”. IMPORTER PAID LOCAL INSURANCE PREMIUM AGAINST LOSS OR DAMAGE OF THE GOODS DURING TRANSIT FROM JAPAN TO MANILA. WHAT IS THE PROPER TERM?
CFR MANILA
DOUBLE POINTS!!
4 X 20’ STC: IMPORTATION OF JASMINE RICE FROM THAILAND BY NATION FOOD AUTHORITY
FOB - $ 10,500/ CTN
FRT- $ 320/ CTN
DUTIABLE FREIGHT = $ 1,280
1 X 40’ STC; HYDROGEN PEROXIDE FROM GERMANY
CFR - $ 80,000
TOTAL FRT- $ 800
LIP- P 150,000
R/E - P 50/$
$ 3,000 v $ 3,168( 80,000 - 800 x .04)
$ 3168
DOUBLE POINTS!! (Grasya o disgrasya?)
A 3 x 40’ vans, STC: various automotive parts arrived at the South Harbor from Thailand. The covering invoice shows total CFR value of $ 20,850.00 while the ocean freight rate charges was based on $ 400.00 per FEU. The importer paid the local insurance premium of P 30,000.00 and secured a certification. Based on exchange rate of P 57.00/$ 1.00, compute the total dutiable value.
INS/COST- $ 393 (20,850- 1200 x .02)
INS/LIP- $545.45
CFR - 20,850
x 57
+ P 30,000
DV - P 1,218,450
SHARING IS CARING!!! (wag greedy para hindi mahuli!)
(half point is for your team and half is for your chosen team)
Study Buddy brought in 20 MT cocoa powder to be unloaded at CDV Terminal in Batangas. Buyer and Seller agreed to use “Delivered at Place Unloaded” as a mode of transaction. The following are the expenses incurred in the importation of goods: exw value: $ 35,000, cost of packing: $ 1,750, inland transport expense at origin: $ 990, loading charges: $ 410, sea freight: $2,320, delivery cost to buyer’s warehouse: $ 725, unloading charges at destination: $1,250, import clearance $ 430 and duties and taxes: $820. Compute for the Destination Other Charges of the shipment.
Delivery Cost $ 725
Unloading Charges $ 1,250
Destination Other Charges- $1,975
POWER POINT!!(do what u gotta do)
(double point to your team AND minus half point to your chosen team who got the correct answer)
TJ Inc. in Makati imported 5 x 20’ FCL, STC: general merchandise from Daiso Merchandise in Tokyo, Japan. The ex-factory price of the shipment is $ 15,000.00 per container, the total loading to vehicle charges was $1,300.00 with the inland freight rate per container of $ 230.00 from Daiso Merchandise Business to Daiwat Forwarding warehouse in Tokyo. The hauling charge from the warehouse to the port of Tokyo was reflected in the billing of the forwarding company as separate value at $ 1,700.00 together with the $ 2,000.00 for handling charges and the total charges reflected in the bill of lading was at $ 35,000.00. The export clearance amounted to $ 4,000.00 and the amount of insurance premium taken by TJ Inc. from a surety firm in Makati was at P 260,000.00. How much should be the FCA value of the shipment?
FCL – 5 x 20’
Ex-works - $ 75,000.00 ($ 18,000.00/cntr x 5 cntrs)
Loading to vehicle - $ 1,300.00
Inland freight - $ 1,150
Export clearance- $4,000
COST- $ 81,450
5 X 40’ STC: FROZEN CHICKEN FILLET FROM GUANGZHOU, CHINA ( NO CERTIFICATE PRESENTED)
FOB - $ 420,000
FRT/ENTRY- $ 8,300
$ 8,300 vs $8,500 (1700 x 5 units)
$8,500
Importation of frozen chicken lollipop arrived at the MICP, with FOB value of $ 54,000.00, paid a local insurance premium of P 118,500.00. How much should be the dutiable insurance if the rate of exchange is P 57.00/$ 1.00?
Ins 1 = $ 2,078.95 (LIP - P 118,500.00/ P 57.00)
Ins 2 = $ 2,160 (COST $ 54,000.00 x .04)
DUT. INS = $ 2,160
POWER POINT!!
(double point to your team minus or half point to your 2 chosen team who got the correct answer)(konsensya o grades?)
Commodity: Assorted Plasticwares
CFR: $30,000
FRT/INV= $900
FRT/BL= $1000
LIP (w/ Cert & OR)- P 32,000
R/E= P54.7/$
CFR - $ 30,000
FRT- $100 (diff)
x P 54.7
LIP- P 32,000
DV -P 1,678,470
Cerveceria Modelo in Mexico exported 2 x 20’ FCL, STC: Corona Extra Beer to Landers Superstore in Manila. the total FCA value of the shipment was at $ 48,000.00, ref ected in the seller’s invoice are as follows, packing, marking and labelling expense at $ 500.00, export clearance at $ 1,500.00, loading charges at $ 800.00, inland transportation at $ 1,200. If the contract of carriage is paid at $ 8,000.00 and the insurance taken by Cerveceria Modelo is at $ 1,056 for the safety of the shipment from the point of delivery to its point of destination. Calculate the amount of ex-factory price should shipment be taken under EXW incoterm 2020.
2 x20'
FCA - $ 48,000.00
packing, marking and labelling expense - ($ 500.00)
export clearance - $ 1,500.00
loading charges - $ 800.00
inland transportation - $ 1,200.00 -
EXW = $ 44,500.00
DOUBLE POINTS! (worth it ang sakit sa ulo pag tama)
We Care Pharmaceuticals in Germany is a known manufacturer of effective anti- aging capsule and they have exclusive distributor here in the Philippines, the Thanders No More Distributors. The latter ordered 20 boxes of the anti-aging capsule with 60,000 capsules each, with a dimension of 2ft x 2ft x 3ft and a total gross weight of 250 kilograms. The packing/marking and labelling charges paid at $ 500.00, loading to truck is paid at $ 200.00, the export clearance is paid at $ 1,500.00 and the total amount for the airfreight paid is $ 3,000.00, the transportation cost from DALOGDOG Pharmaceuticals to the warehouse of Ethiad Airways is at $ 350.00, the insurance taken by the vendor amounted to $ 2,500.00. If the ex-factory price per dozen is at $ 1.50, How much should be the total CIP value of the shipment?
20 boxes 60,000 capsules each box ex-factory price per dozen - $ 1.50
Ex-works ( $ 1.50/dz x 100,000 dzs) - $ 150,000.00
Loading to truck - $ 200.00
Export clearance - $ 1,500.00
Transportation cost - $ 350.00
Airfreight - $ 3,000.00
Insurance - $ 2,500.00
TOTAL: $ 157,550.00
DOUBLE POINTS!! (Go go go)
How much should the dutiable freight charges be if the FOB value is $ 15,500.00 with freight declared in the entry is $ 1, 120.00 and 120% of the gross conference rate is $ 2,300?
FRT/ entry - $ 1,120.00
120% of the gross conference rate - $ 2,300.00
Frt 1 = $ 1,420.00 vs Frt 2 = $ 1,341.67( $ 2,300/1.2 X .7)
Dutiable Freight = $ 1,341.67
Compute for the Dutiable Insurance of the shipment if the Importer paid P 87,000 for customs duty and has the following information:
Dangerous Cargo
Rate of duty: 8%
Frt/Inv: $ 1,200
Frt/ BL: $ 1,250
Exchange Rate: P 55/$
DV = P 1,087,500 ( 87,000 / .08)
CIF = $ 19,772.73 (1,087,500 / 55)
($ 1,250)
COST&INS = $ 18,522.73 / 1.04
COST = $ 17,810.31 x .04
DUTIABLE INS = $ 712.41
Kyle imported 70 boxes of beauty products from Korea. The total CFR value of the shipment is $400/ box and the total freight in the invoice was $1,200 while the total freight indicated in the BL was $1,250. How much should be the dutiable value if the importer secured a Local insurance premium amounted to P45,000 with a certificate presented to the Bureau. Use the exchange rate P 58/$.
CFR - $ 28,000
FRT - $ 1250
INS- $ 775.86 (45,000/58) vs $536 (28,000 - $1,200 x.02)
x 58
DV = P 1,671,899.88