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Querist : Anonymous

Querist : Anonymous (Querist)

15 February 2011 I have a few little problems please solve out as followings:
a) What is the CIF and FOB value.
b) A person who bears the expenses are related to Import Purchase.
c) If import invoice of 1000 USD. The custom has mentioned 1000 USD in the bill of entry,50 USD for freigt and 10 USD for insurance. The exchange rate of indian currancy is Rs. 45/- per dollar. What entries are recorded by the importer and how much pay to supplier.
d) I want to set up a newly business to distribution of imported wines in Delhi. I am paying custom duty as well as Special Additional Duty(SAD@4%) and when I take order to supply then charge 20% vat on. Tell me can i take duty drawback from the custom which paid by me @4% in form of SAD.

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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15 February 2011 This is a global shipping terms which use in international trade. CIF means Cost Insurance and Freight. That means shipper/Trader has to pay the Cost of shipment up to the ship, Insurance cost of cargo and Freight cost up to destination port. FOB stands for Free On Board which means shipper/trader pays only costs up to the ship and Insurance cost, but freight charges is payed by the Buyer/Consignee.

(A)FOR INSTANCE, if you EXPORT 1000 USD export AT EXCHANGE RATE =RS. 50
FOB = 1000*50 =RS.50000.00

CIF WILL BE IF WE ADD THE INSURANCE 50 USD 50 , AND FREIGHT 1000 USD

= 1100 USD (1100*50) = 55000

(B) AS PER EXPORT IMPORT SALES IT DEPANDS BETWEEN BUYER AND SELLER.

(C)ACTUALLY THIS DEPANDS OCCURS ON ESC BEETWEEN SELLER AND BUYER.
FOR SET UP THE BUSINESS , THE DGFT ISSUE THE IEC CODE AND BEFORE AN EEFC ACCOUNT OPENED BY THE IMPORTER AND EXPORTER AS PER PROVISION LAID DOWN IN THE FOREIGN TRADE POLICY.

Querist : Anonymous

Querist : Anonymous (Querist)

15 February 2011 Thanks, But how much amount paid by the importer to supplier

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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15 February 2011 dear author,

assume if you export 1000 USD and foreign currency received through EEFC ACCOUNT IN 998 ,

ANY INCENTIVE , EITHER DEPB / DRAWBACK WILL BE CALCULATE ON THE 998 USD

ANY QUERY??

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