An Australian importer has declared to Australian Custom with the following information:

• F.O.B. price on the trade contract is $100,000.00;
• Shipping cost is $1,000;
• Insurance cost is $800;
• Import duty for the subject commercial goods is 5%.

Please answer the following:

1. Please explain what VoTI is.
2. Please calculate the value of VoTI and the applicable Australian Goods and Services Tax (10%) in Australia (show your calculation working out).
3. It is common for most countries to have different levels of custom duties and taxes on the same commercial goods imported from different countries of origin. Please discuss the reasons.

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(1 + 3 + 2 = 6 marks)