1. A Chinese company from Guangzhou is going to export 1,000 pairs of shoes to Phoenix, the United States. The price is USD 30 per pair. The shoes will be delivered by ocean transportation to Los Angeles (L.A.) first, and then to Phoenix by railway. The costs and expenses at all stages of delivery from Guangzhou to Phoenix are as follows:
(1) Total price of shoes, at the seller’s factory US$30,000.00
(2) Transport to docks by rail $100.00
(3) Port dues and Loading charges $200.00
(4) Freight by sea to L.A. $800.00
(5) Unloading charges in L.A $200.00
(6) Import duties $300.00
(7) Transport from L.A. to Phoenix $300.00
(8) Insurance, F.P.A., Guangzhou to L.A. $400.00
(9) Insurance, F.P.A., Chicago to Phoenix $200.00
Please quote the Total Prices of the transaction on the bases of these 5 trade terms: (1) FOB Guangzhou, 2) CFR L.A., 3)CPT Phoenix 4) CIP Phoenix, 5) DDP Phoenix.
EXAMPLE: FCA Guangzhou Airport=(1)+(2)= $30,100
CFR LA=(1)+(2)+(3)+(4)=31100
CPT Phoenix= (1)+(2)+(3)+(4)+(5)+(7)=31600;
CIP Phoenix= (1)+(2)+(3)+(4)+(5)+(7)+(8)+(9)=32200;
DDP Phoenix=(1)+(2)+(3)+(4)+(5)+(6)+(7)+(8)+(9)=32400.
Hope to help you.
