Reference no: EM131753871
ABS Products Inc., a High Point, North Carolina-based furniture company, imports merchandise manufactured in Argentina(AR). The price of the products in the factory at AR, is $2,000,000. The expenses incurred during the transaction are:
Transport costs from the City of El Dorado, AR to the Port of Buenos Aires, AR: $ 4,000?Transport costs from the Port of Buenos Aires, AR to the Port of Wilmington, NC, USA: $110,000?Transport costs from the Port of Wilmington, NC to the Warehouse of ABS Products in High Point, NC: $600?Cargo loading costs in the port of Buenos Aires: $360?Unloading costs in the port of Wilmington, NC: $410?Unloading costs in High Point: $100?Export duty: $700?Import duty: $1,200?Transit duties: $850?Custom clearance of import costs: $500?Land-transport insurance in Argentina: $850?Cargo-transport insurance: $1,900?Land-transport insurance in the US: $150
DEFINE the following terms AND COMPUTE the costsincurredby the buyer (importer) and the seller (exporter)under following delivery conditions:
a) Ex Works (EXW)
b) Free Alongside Ship (FAS) (at Port of Buenos Aires)
c) Cost and Freight (CFR) (at Port of Wilmington)
d) Delivery at terminal (DAT) (at Port of Wilmington)
e) Delivery Duty Paid(DDP)
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