Reference no: EM132924485
Your trading firm is based in Melbourne and you have been asked by a buyer in Vietnam to provide a quotation for a shipment of 180 tons of Australian flour. The trade term agreed is CFR Ho Chi Minh City (INCOTERMS 2020). The following data and information are available to you:
The EX WORKS price your firm buys from a local manufacturer in Dandenong is AUD 250 per ton.
Local transport from the manufacturer's warehouse to Port of Melbourne is AUD 500 per truck, which each truck carries 20 tons of cargo.
The loading fee onto the ship at the Port of Melbourne is AUD 50 per ton.
The unloading fee out of the ship at the Port of Ho Chi Minh is VND 1,000,000 per ton.
Export duty is 2% of the EX WORKS price.
Seafreight from Melbourne to Ho Chi Minh City, best quoted by a shipping line, is USD 9,000 for the whole shipment.
The chartering term is FIFO
Your firm would like to earn 20% profit on top of the EX WORKS price.
Calculate, showing all working steps, and provide your buyer with a quotation in both AUD per ton and USD per ton, knowing that the current exchange rates are 1 USD = 1.4 AUD and 1USD = VND 22,000.
Question C2
Your trading firm in Melbourne has recently signed a sales contract with a seller of rice in bags from Thailand to import 200 tons. The agreed Incoterm is CFR LT Melbourne (INCOTERM 2020) and the quoted price is USD 1700/ton (called "the L/C value"). The product will be shipped in containers with each container holding 20 tons.
The Australian Customs impose the import tariff of 15% of the L/C value which your firm needs to pay. There is also 7% GST of the import tariff that is imposed on your firm. Other additional costs that your firm needs to take into consideration are as follows:
Transporting from Melbourne Port to your firm's warehouse in Dandenong: AUD 500 per truck (each truck can carry 20 tons of cargo).
The estimated insurance cost for this shipment is 1.5% of the L/C value.
The current exchange rate is: 1 USD = 1.4 AUD.
What would be the selling price in AUD per ton your firm should set in the Australian market, knowing that your firm would like to earn 15% profit on top of the total import costs and 1% of cargo volume was lost during handling process?