Case study 2

Using the following information, answer the following 3 questions:

A shipper has the following cargo and associated freight Costs:

2 x 40-ft containers said to contain iPhone 12 Pro Max.

Invoice value of each container: CAD1,235,000.00

Ocean freight Montreal to Port of Nagoya, Japan: JPY85,032/container

Pre-carriage Ottawa to Montreal: CAD 2,125.00/container

All risk marine premium rate at 0.35%

The exchange rate is CAD1.00 = JPY82.06

Q1: How much is the estimated 120% CIF value? *

1. $2,476,322.44
2. $2,981,987.48
3. $2,964,000
4. $2,970,736.92
5. $2,971,586.93

Q2: What is the amount of insurance premium on this cargo? *

1. $10,374
2. $10,397.58
3. $8,667.13
4. $10,400.55
5. $10,436.96

Q3: How much is the actual CIF value? *

1. $2,480,436.96
2. $2,484,989.57
3. $2,981,987.48
4. $2,486,759.40
5. $2,476,322.44