Element of competency: To carry out customs formalities and to clear goods through customs 01HS.6 Performance
Question:
Element of competency: To carry out customs formalities and to clear goods through customs – 01HS.6 Performance criteria Weight 6.2Exact determination of the tariff rates for customs /5 6.3Exact calculation of customs duties /5 Element of competency: To ensure security of payment methods – 01HS.4 Performance criteria Weight 4.2Appropriate protection of payment from the fluctuations of exchange rates /5 A French importer has signed a contract to purchase USD 100,000 worth of equipment (3925.20.00 – Doors, windows and their frames and thresholds for doors, of plastics. See document below), from a supplier in China, payable in USD. Buyer’s request for a term payment has been agreed by Seller. Payment now is due at the date of direct shipment to France. At the time of signing the agreement, the U.S. dollars equal to EUR 0.90. At the time of payment, after 60 days ,the U.S. dollars worth EUR 1 (parity).
a) Differentiate the tariff regime applied to China and the LDCT regime.
b) Evaluate the number of customs duties to be paid by the importer.
c) Calculate the loss or gain (to be specified) experienced by the French importer and caused by the fluctuation of the exchange rate between the two dates.
Applied Regression Analysis and Other Multivariable Methods
ISBN: 978-1285051086
5th edition
Authors: David G. Kleinbaum, Lawrence L. Kupper, Azhar Nizam, Eli S. Rosenberg