Assignment 2

Name: ______________________

Please submit a properly formatted (double-spaced, 1" margins on all sides, Times New Roman font with 12pt. font size)

What are the differences between mediation and arbitration? How do they differ from a proceeding in a court of law (litigation)?

Mr. Chang is a household product manufacturer (Changs soap) based in Guangzhou, China. And Mr. Chang is exporting hand soap set to Mr. Smith (Smith grocery), a Los Angeles based retailer. This is part of the commercial invoice Mr. Chang provides to Mr. Smith. When Mr. Smith clears custom for the imported products, please calculate the valuation of this import transaction based on:

The landed cost approach

The FAS/FCA approach

INVOICE: 23632633		DATE: 10/20/2019
Sold By:		Shipped By:
Changs soap		Changgang Road No. 166, Guangzhou, Guangdong, China
Sold To:		Shipped To:
Smith grocery		2700 Hyperion Ave, Los Angeles, CA 90027, USA
Purchase Order: 2563325
Quantity	Description	Unit Price	Total
1000	Luxury vanity set China domestic transportation Ocean Freight Cost to Los Angeles Insurance (coverage for $14,850 value of product)	$13.50 $100 $1,200 $5,000	$ 13,500
	Total:		USD $ 19,800
Shipped via: Ocean		FOB. Terminal, Port of Guangzhou, Incoterms 2010
Country of Origin: China
Terms: 1.5% 10 days/nets 30 days

*Hint: please revisit the Customs Clearance module for the two different valuation approaches.