Shipping Duty Rate - 1240 Words

Duties Duties are calculated by using the following formula: Duties= Import Rate*(Product Cost+Shipping Cost per Unit) The shipping cost was based on the Transportation/Insurance Rate (T/I) of the unit’s weight. Option 1: Assembly in New Orleans Of the potential assembly sites, the New Orleans site is the one not in a Free Trade Zone (FTZ). While the gadgets are made in New Orleans and are assessed no import duty, the gidgets, which are made in Brussels, Belgium, must be taxed at a 7% rate duty coming into the United States at a $25 dutiable value. After assembly in New Orleans, the window units will be distributed to the target markets, where a duty and drawback will be applied. Because the gidget came from the European Union (EU) to†¦show more content†¦And since all unfinished and finished products are being delivered to multiple countries and not bound to just one location, the currency exchange risks would also affect every location as there is always a gap between the time a contract is made for the goods and the time the actual payment is received for them. Furthermore, there are classic risks associated with assembly in any location that affect any organization which includes: cultural, political, economic, financial, industry, and etc. risks. Option 1: Assembly in New Orleans, US Risks specific to assembling products in the US include ever-changing economic conditions, after-effects of Katrina still resounding, and perception and cultural differences from their target markets. Option 2 3: Assembly in Zaragoza, Spain or Istanbul, Turkey Risks specific to assembling products in the Zaragoza Istanbul, includes having all the finished good’s raw products being outsourced, leaving the assembly plant victim to many possible delivery delays, and having the assembly plant in a completely different location from headquarters and not being able to monitor all aspects of the supply chain as thoroughly. Recommendation The recommendation to SAI is to assemble theShow MoreRelatedImport - Export901 Words   |  4 PagesGeneral Provisions about Customs Procedures Basic document is ‘Entry’ Entry’ in relation to goods means entry made in Bill of Entry, Shipping Bill or Bill of Export. In case of import by post, label or declaration accompanying goods is ‘entry’ Loading and unloading at specified places only Imported goods can be unloaded only at specified places. Goods can be exported only from specified places. 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