Question
The overseas buyer of one of our clients has requested a pro forma invoice with the total landed cost for a purchase. This is a
The overseas buyer of one of our clients has requested a pro forma invoice with the total landed cost for a purchase. This is a common first step in negotiating an export purchase. They have contacted our organization for help. The product - artificial fur - is to be exported overseas in about one month from Arizona(usa) to France. your efforts will focus on the four specific tasks below. With your response, include images of all source materials you use and weblinks to them. Some potential sources you might find helpful are provided.
Your state is: ARIZONA
COUNTRTY: FRANCE
1. Collect the information needed to calculate CIF to the foreign maritime (ocean) port. Show your calculations.
A. Determine the US’ 10-Digit HS Code for that product.
B. The US company will be shipping a 40' standard Full Load Container (FCL) of the product to this country(france). The invoice value of the shipment is US$30,000. Insurance is 10% of invoice value.
C. Estimate the cost for truck freight from the capital of YOUR STATE(ARIZONA) to the US maritime (ocean) port you will use. Use a cost of US$3.00/mile for your calculation.
D. Estimate the cost for ocean freight from Arizona to France in US dollars. Use the higher end of the price range for your calculations. Identify the US maritime (ocean) port nearest Arizona and the foreign maritime (ocean) port nearest France.
2. Determine tariffs and taxes. Use the higher end of the price range for your calculations.
Determine the tariff category used for imports into France from the US (“General Rate,” “Most Favored Nation” (MFN) Rate, OR “United States of America Rate”). MFN rates apply to WTO members.
B: Based on the tariff category, determine the tariff percentage, and calculate the duty that would be associated with these imported products. Access the US Country Commercial Guide for france .and look under the "Customs, Regulations & Standards" tab for "Import Tariffs". Use the average tariff rate and calculate duty "CIF."
C: Determine the value-added tax (VAT). Access the US Country Commercial Guide for france and look under the "Customs, Regulations & Standards" tab for Import Tariffs or Customs Regulations to get the value-added tax (VAT). You may have to connect to a national website, but many have a translation option. Use the average rate and calculate it "CIF+Duty amount."
3. Estimate the total landed cost. Show your calculations.
4. To ensure the company has all their paperwork and avoids red tape or other delays, include the following information. What are the import requirements for france? Which import documents are needed for france (i.e., how many and which ones)? What are two customs brokers that have offices in france?
A. Access the US Country Commercial Guide for France Import Requirements and Documentation".
B. Visit the website of two customs brokers with offices in France. Private companies are desired. Detail the services that each company provides. Provide contact information for each.
Step by Step Solution
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There are 3 Steps involved in it
Step: 1
Collect the information needed to calculate CIF to the foreign maritime ocean port Show your calculations A Determine the US 10Digit HS Code for that product The HS code for artificial fur is 43031000 ...Get Instant Access to Expert-Tailored Solutions
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Step: 2
Step: 3
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