BUSINESS
ITT Exercises - Freight Transportation.pdf

Buyer seller note it depends what the terminal

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Buyer Seller Note: It depends what the terminal handling charges cover. If they cover the unloading of the goods from the aircraft, they are for the account of the shipper, if they cover the loading of the vehicle picking up the goods from the airport, then they are for the buyer’s account. e) The goods are lost and never arrive in Toronto. Who bears the risk? Buyer Seller 5 And so should carry cargo insurance. f) There is an ACI air fee of EUR 20.00 applied to the shipment. Who is responsible? (Advance Commercial Information/Security Fee) Buyer Seller Note: The answer to this question is debatable as the ACI fee is a cost relating to customs in the importing country and therefore should be paid by the buyer but the standard practice seems to be that it is for the seller’s account as he is responsible for all costs involved in getting the goods to the destined place (Pearson) and this fee is filed by the airline at origin prior to export. 3. Excellent Exporters in Edmonton, Alberta sells zinc to a mine in Chile. Terms of sale: DAP, Avda. Grecia 60, Calama, Chile, Incoterms ® 2010 50 tonnes, 60 m 3 Terms of delivery: ocean freight: three 20-ft ocean containers via Antofagasta, Chile Terms of payment: open account, net 60 days a) Who selects the freight forwarder and pays the ocean freight charges? Buyer Seller 5 b) Who is responsible for arranging and paying for the container placement at the supplier’s door ? Buyer Seller 5
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Answers Terms of Trade Page | 199 2017 c) Who is responsible for paying the terminal charges at the Port of Antofagasta, Chile of US $300.00? Buyer Seller 5 d) One of the trucks carrying a container overturns on the road between Antofagasta and Calama. Some of the zinc is lost when the container bursts open. Who bears the risk of this loss? Buyer Seller 5 e) Who is responsible for the cost of unloading the containers at the door at Calama? Buyer 5 Seller
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Answers Terms of Trade Page | 200 2017 Exercise 6.4 (Answer) 1. You are employed by SR Exports, Kelowna, B.C. Your company wants to export plumbing supplies to Wet Works Inc. in Osaka, Japan. Shipping instructions are as follows: x The goods are to be shipped from SR Exports by CF Trucking (175 Apple Ave., Kelowna, B.C.) to Vancouver Airport, loaded onto a flight to Los Angeles, U.S.A. x From LAX, the goods will be loaded onto a JAL flight to Tokyo x From Tokyo Airport, H.K. Trucking will deliver the goods to Wet Works Inc., 1200 Kawasaki Street, Osaka. The buyer has asked that you quote prices under various alternatives. What complete Incoterms ® 2010 would apply for the following scenarios? a) The buyer wants you to deliver the goods to Osaka, where he will assume risk for the goods, account for them to customs, and pay duties and taxes. DAP, Wet Works Inc., 1200 Kawasaki Street, Osaka, Incoterms ® 2010.
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  • Fall '18
  • Jane Smith
  • freight forwarder, Commercial item transport and distribution, CIFFA, Ocean Transportation Intermediary

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