3. Mondelez LLC is based in the UAE mainiand ares and is engaeed in the import of row material (Sugar, chocolate powder etc.) from SA. The cost of this raw material is AED 950,000. The importer of record has to pry 2% of thi cost in terms of insurance, and 3% of this cost in terms of freight. Please calculate the amount of customs duty paid by Mondelez in these two scenarios: All the conditions of GCC free trade agreement are met. Assume that exporter is unable to meet the conditions of GCC FTA whilst sending the shipment and Mondelez LLC has to pay import duty in the UAE. Also, please assume that the rate of customs duty for the associated HS codes is 5%.
3. Mondelez LLC is based in the UAE mainiand ares and is engaeed in the import of row material (Sugar, chocolate powder etc.) from SA. The cost of this raw material is AED 950,000. The importer of record has to pry 2% of thi cost in terms of insurance, and 3% of this cost in terms of freight. Please calculate the amount of customs duty paid by Mondelez in these two scenarios: All the conditions of GCC free trade agreement are met. Assume that exporter is unable to meet the conditions of GCC FTA whilst sending the shipment and Mondelez LLC has to pay import duty in the UAE. Also, please assume that the rate of customs duty for the associated HS codes is 5%.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:3. Mondelez LLC is based in the UAE mainiand ares and is engaeed in the import of row material (Sugar,
chocolate powder etc.) from SA. The cost of this raw material is AED 950,000. The importer of record has to
pry 2% of thi cost in terms of insurance, and 3% of this cost in terms of freight. Please calculate the amount
of customs duty paid by Mondelez in these two scenarios:
All the conditions of GCC free trade agreement are met.
Assume that exporter is unable to meet the conditions of GCC FTA whilst sending the shipment and
Mondelez LLC has to pay import duty in the UAE. Also, please assume that the rate of customs duty for the
associated HS codes is 5%.
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