Calculate the insured value and determine the premium for the following shipment on 110% of CIP value. The insurance premium has been sold at USD $0.38/USD 100 or 0.38% of insured value (Min $200), all risk.

Additional information (hints) for this scenario:

- The cost of the products provided in the assignment include all taxes.

- Please ensure you look at the INCOTERM used in the assignment. The incoterm will dictate which charges are required when calculating the CIP value.

Seller: Compak Disks Ltd., Seoul, Korea

Buyer: Kay-Tell Distributors, Woodstock, Ontario

Commodity: Tablets

Price: US $95.00 each. Factory Korea.

Quantity: 600 tablets

Packaged: 600 cartons @ 46 cm x 36 cm x 24 cm @ 9 kg each

Terms of delivery: CIP Toronto, Incoterms 2020

Mode of transport: ocean freight

Shipment details:

Loaded: door Seoul Korea, 1 x 20-ft standard TRVA 168932-5

Port of loading: Busan, Korea

Port of discharge: Vancouver, Canada

Delivery: CY Toronto

Vessel: S.S. Maruni, Voy: 803

Sailing: January 29, 2017.

Freight charges:

Inland cartage Korea: US $350.00

Ocean freight: CY Busan CY Toronto, US $1,800.00

Documentation: US $75.00

Duty and Taxes

Duty rate: 8% of commercial value

VAT: 5% of commercial value

Question #1: Determine the CIP value of the shipment.

Please show all work when calculating the value for insurance. (9 marks)