Bongani Dlamini’s company, Dulcis (Pty) Ltd, situated in Germiston, Gauteng, received an enquiry from a potential buyer, “The Special Candy” in Chicago, U.S.A, requesting a CIP Port of Chicago, U.S.A quotation in USD for a 20ft/6m GP of “soft caramels”. Order will be for a combination of four different types of soft caramels namely extra salty, tangy sweet, liquor ice tasty and sweet chocolate.

Bongani calculates that he can load 10 pallets per 20ft GP container; 25 cartons to be loaded on one pallet.

Each carton consists of 6 retail packs and each retail pack has 20 soft caramels.

As the cost per soft caramel flavour is the same, Bongani calculates that a carton of soft caramels will be ZAR 300 ExW Germiston

The product is not subject to any mandatory inspections, BUT the buyer did request that Bongani appoints an inspection company, such as BV, to check the quantity before the goods are shipped to them. The cost for such an inspection will be R1500.00.

Payment is to be made based on an irrevocable documentary credit, 60 days from invoice date. Bongani recently signed a credit insurance policy, this will then provide credit insurance cover for the invoice value at a premium of 1,85%. A commission of 5.5% of the FCA value will be due to the overseas agent while financing is available at the bank’s prime interest rate of 13,5% per annum.

Charges for delivery of the empty container and collection of the full container including transport to Durban port have been quoted at R3 800.00 with export cargo dues and the terminal handling charge at R1800.00 and R1350.00 per container respectively.

Freight quoted per container is USD 1520.00 + 20,5% BAF and your freight forwarder will charge a documentation fee of R850.00, an agency handling fee of 6,32% of disbursements, EDI fee of R98.00 and SOLAS amounting to R750.00 per container.

Other charges to be incurred by the freight forwarder on your behalf comprise a bill of lading issue fee at USD40.00 and a carrier release fee of R350.00. The marine insurance premium for this shipment under your company’s open policy will be 3,25% of (CIP + 10%).

Exchange rates:

USD/ZAR 14,1571 (buying) and 14,5415 (selling)

By using the information provided above, answer the following questions

Calculate the complete CIP costing for this shipment.

The costing sheet should only reflect figures rounded to the nearest rand, i.e. 50 cents or more upwards and less than 50 cents downwards. By applying the same principle, round percentages to the nearest two decimal points where applicable.