Import exercise
Hoang Ha Company (Vietnam) wants to trade in 30 liter hot water bottles
imported from 1 container of 20 feets (200 pieces) from ARISTON. CIF
Hai Phong purchase price is 70 USD / item (Incoterms 2010), transaction
costs 2% of foreign contracts, shipping costs from Hai Phong to Hanoi is
4,000,000 VND / container. Import tax is 20%, VAT is 10%, CIT is 20%.
Know that: the selling price is 2,970,000 VND / item (including VAT),
exchange rate of 1 USD = 23,000 VND, interest rate on bank loans is 2% /
month for 3 months.
Questions:
1. Make a business plan and make a decision
2. Foreign suppliers re-offer FOB Rottecdam at US $ 58 / unit,
knowing that chartering is US $ 3 / unit and the premium
rate is 0.5%, purchasing on condition A for 110% of the
contract value. Should the company choose the option to
buy FOB?
Exercise type: Export
An iron export contract sells for $ 260 per tonne for a 15-tonne
container at FOB Haiphong prices. The purchase price of a ton of
goods in Hanoi is VND 4,600,000 / ton, export tax of 0%, corporate
income tax of 20%, bank loan interest of 1% / month on the value
of purchased goods. Time of purchase and export is 3 months.
Inland transport cost is 4,500,000 VND / 1 container (15 tons). The
cost of warehousing, forwarding, handling and customs is 3% of the
contract value.
Assuming the dollar exchange rate is 1 $ = 23,000 VND
Questions:
1. Decide to export this item or not? How much is the profit / loss
after tax?
2. When the partner wants to buy under CIF Kee Lung Taiwan,
How much will you bid? If the cost of renting a ship from Hai
Phong to Kee Lung Taiwan is 600 USD / 1 for 20 feet (15 tons)
and 0.5% insurance premium is based on CIF price, buying
under condition A 110% of the value of the goods. The
company expects the same interest (case 1).
