You are new to importing but went to a trade show for widgets in London, England. Three companies from Brazil, Canada, and Germany sold the widgets you wanted. Each firm gave you a price EXW. The minimum order is 1,000 widgets.

-You have a friend with a truck who can pick up the widgets at the port of Charleston after it has cleared customs. How much would you save per widget?

-A freight forwarder can get the product to you for 10 percent more. Why would you use a freight forwarder.

A B D E F Germany, Hamburg Brazil, Rio de Janeiro Canada, Halifax $950.00 0.25 3 German, Brazil, Origin: Canada Value per widget Import duty Destination: CharlestonsC Commodity: widgets No. Pieces: Ordered 1000 Weight Each: 6 lbs - 2.7 kgs Price of each widget US tariff on widget Cost of Goods (1000 widgets) Packaging EXW foreign factory Foreign Inland Freight $1,000.00 0.15 $1,000,000.00 $1,250.00 $1,001,250.00 $400.00 $1,100.00 0.00 $1,100,000.00 $1,100.00 $1,101,100.00 $500.00 $950,000.00 $1,000.00 $951,000.00 $300.00 5 5 - Dimensions: 16" x 12" x 3" $0.00 8 Value: $1000.0/widget : $/ 0 1 Total Weight: 5940 lbs - 2694 kgs Measurement Each: .333 C/F -.009 CM Total Measurement: 330 C/F-9.345 CM 2 $0.00 $155.00 $951,455.00 $975.00 $952,430.00 $3,300.00 $955,730.00 $955.00 $150.00 $1,001,800.00 $975.00 $1,002,775.00 $3,300.00 $1,006,075.00 $955.00 Port Handling (included in freight charge) Export Clearance FCA Foreign Port Main Carriage (transportation via Ship) CPT Charleston Port Marine Insurance CIP Charleston Port Port of Charleston Handling Transportation via truck from Port of Charleston to Charleston Warehouse DAP Charleston US Import Clearance fees Duty DDP Charleston $0.00 $145.00 $1,101,745.00 $975.000 $1,102,720.00 $3,000.00 $1,105,720.00 $955.00 3 4 5 Packaging: 5 Pallets $425.00 6 7 8 Pallet Weight: 60 lbs each Pallet Size: 48" x 40" x 6" Pallet Configuration: 3 x 3 x 22 Pallet Cost: $60.00 per pallet $1,007,455.00 $200.00 $150,911.25 $1,158,566.25 $425.00 $957,110.00 $200.00 $238,932.50 $1,196,242.50 $425.00 $1,107,100.00 $200.00 $0.00 $1,107,300.00 9 0 0 1 2 A B D E F Germany, Hamburg Brazil, Rio de Janeiro Canada, Halifax $950.00 0.25 3 German, Brazil, Origin: Canada Value per widget Import duty Destination: CharlestonsC Commodity: widgets No. Pieces: Ordered 1000 Weight Each: 6 lbs - 2.7 kgs Price of each widget US tariff on widget Cost of Goods (1000 widgets) Packaging EXW foreign factory Foreign Inland Freight $1,000.00 0.15 $1,000,000.00 $1,250.00 $1,001,250.00 $400.00 $1,100.00 0.00 $1,100,000.00 $1,100.00 $1,101,100.00 $500.00 $950,000.00 $1,000.00 $951,000.00 $300.00 5 5 - Dimensions: 16" x 12" x 3" $0.00 8 Value: $1000.0/widget : $/ 0 1 Total Weight: 5940 lbs - 2694 kgs Measurement Each: .333 C/F -.009 CM Total Measurement: 330 C/F-9.345 CM 2 $0.00 $155.00 $951,455.00 $975.00 $952,430.00 $3,300.00 $955,730.00 $955.00 $150.00 $1,001,800.00 $975.00 $1,002,775.00 $3,300.00 $1,006,075.00 $955.00 Port Handling (included in freight charge) Export Clearance FCA Foreign Port Main Carriage (transportation via Ship) CPT Charleston Port Marine Insurance CIP Charleston Port Port of Charleston Handling Transportation via truck from Port of Charleston to Charleston Warehouse DAP Charleston US Import Clearance fees Duty DDP Charleston $0.00 $145.00 $1,101,745.00 $975.000 $1,102,720.00 $3,000.00 $1,105,720.00 $955.00 3 4 5 Packaging: 5 Pallets $425.00 6 7 8 Pallet Weight: 60 lbs each Pallet Size: 48" x 40" x 6" Pallet Configuration: 3 x 3 x 22 Pallet Cost: $60.00 per pallet $1,007,455.00 $200.00 $150,911.25 $1,158,566.25 $425.00 $957,110.00 $200.00 $238,932.50 $1,196,242.50 $425.00 $1,107,100.00 $200.00 $0.00 $1,107,300.00 9 0 0 1 2