Finance - Export & Import

US Manufacturer sells USD $500,00.00 of electrical appliances to a buyer in Japan on Terms Free Alongside Ship (FAS). Buyer put down 30% deposit for the purchase. Then the buyer hires A.L.S. Freight Management from Louisiana to move the goods to Port of Tacoma. A.L.S. Freight Management hires Dupr Logistics who subs the move to First Class Trucking Corp. Shipment moves from Louisiana to First Class Trucking Corp. in Tacoma, Washington. Next day, First Class Trucking Corp. delivered the good alongside the vessel name Hapag-Lloyd at Port of Tacoma. Before the voyage, the vessel sunk near the wharf. Buyer is responsible for the risks but unfortunately, he did not purchase the shipment insurance and the vessel had technical failure before the departure. i. With the aid of the diagram, write the scenario of the situation given. [15 marks] ii. Apply your knowledge on the scenario by giving your advice to exporter and importer. [20 marks] iii. As an observer, discuss the whole process of INCOTERMS for Free Alongside Ship that seller and buyer should deal with. [15 marks] US Manufacturer sells USD $500,00.00 of electrical appliances to a buyer in Japan on Terms Free Alongside Ship (FAS). Buyer put down 30% deposit for the purchase. Then the buyer hires A.L.S. Freight Management from Louisiana to move the goods to Port of Tacoma. A.L.S. Freight Management hires Dupr Logistics who subs the move to First Class Trucking Corp. Shipment moves from Louisiana to First Class Trucking Corp. in Tacoma, Washington. Next day, First Class Trucking Corp. delivered the good alongside the vessel name Hapag-Lloyd at Port of Tacoma. Before the voyage, the vessel sunk near the wharf. Buyer is responsible for the risks but unfortunately, he did not purchase the shipment insurance and the vessel had technical failure before the departure. i. With the aid of the diagram, write the scenario of the situation given. [15 marks] ii. Apply your knowledge on the scenario by giving your advice to exporter and importer. [20 marks] iii. As an observer, discuss the whole process of INCOTERMS for Free Alongside Ship that seller and buyer should deal with. [15 marks]