Group Assignment Chapter 2

ABC Trading Co, Vietnam (The Seller) offers coffee

of 1,000 tons for DNZ Trading Co., Japan (The
Buyer) at selling prices under the trade terms, as
follows:
− FOB Saigon port is 750,000USD;
− CIF Tokyo port is 900,000USD;
− DAP buyer’s warehouse in Tokyo is
1,000,000USD.

Freight including loading fee to bring the goods from

Saigon port to Tokyo port is 150,000USD.
Transportation cost including loading and unloading
fee to bring the goods from Tokyo port to the
buyer’s warehouse is 80,000 USD; Insurance rate:
0.2%. Import duty: 5% based on FOB.
1. What the selling price does the buyer choose?
Why?
2. If the buyer wants to buy under the term of
DDP, What must the seller pay costs and bear
risks under the term of DDP at the buyer’s
warehouse in Tokyo?
3. What are main differences between DAP and
DDP at buyer’s warehouse in Tokyo?

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Analyzing the case 7.1 in book ‘Export-Import
Theory, Practices, and Procedures’.