Written Assignment #1 (10% - 10 marks total)

Case Study

You are the sourcing manager of ABC Foods Co. Ltd in Scarborough, Canada. (Address: 110 Dynamic Drive, Scarborough, ON, M1V 6B7)

You plan to import some products from KF Snacks Co. Ltd, UK. (Address: KF Snacks Co. Ltd.1456 Summer Street, Cardiff, CF10 4LX)

Description of goods:

1. Beverages containing milk, not certified organic, vanilla flavor soft drink.

Size: 500ML * 15 bottles per case. Price: USD4000. Quantity: 500 cases.

1. Brown Sugar

Size: 300G * 50 bags per case. Price: USD 8000. Quantity: 200 cases

1. Sodium Bicarbonate (Baking Soda)

Size: 50G * 50 bags per case. Price: USD 3000. Quantity: 300 cases

1. Cookies

Size: 380G * 10 boxes per case. Price: USD 3300. Quantity: 300 cases

1. Paper Bags (300 pcs)

Price: USD 6720. Quantity: 320 cases

BN of ABC Foods Co. Ltd: 123456789RM-0001

Paperwork provided: Canada Customs Invoice

Exporter's Certificate of Origin (Statement of Origin) is not provided.

Goods have been released on an RMD.

The vendor and purchaser are not related firms. Price paid or payable is without adjustments.

Requirements:

1. Determine the appropriate 10 digit HS Classification number for these products.
   1. Ensure the format is XXXX.XX.XXXX

1. Beverages containing milk: 0401.10.1000

2. Brown Sugar: 1701.12.1000

3. Sodium Bicarbonate (Baking Soda): 2836.30.0000

4. Cookies: 1905.31.0000

5. Paper Bags: 4819.30.0000

1. Based on the information, review the related of the Customs Tariff Schedule, answer the following:
   • Total VFD: 34,520

• Classification number:

1. Beverages containing milk 0401.10.1000

2. Brown Sugar 1701.12.1000

3. Sodium Bicarbonate (Baking Soda) 2836.30.0000

4. Cookies 1905.31.0000

5. Paper Bags 4819.30.0000

• Rate of Customs Duty: 9.5%
• Rate of GST: 5%
• Value for currency conversion: 1 Pound Sterling to 1.21 United States Dollar.
• Value for duty: 25,020
• Customs Duties: 9,500
• Value for tax: 34,520
• GST: 5,475
• Customs duties: 9,500
• GST: 5,475
• Total: 14,975