Scenario:

National Office Supply issued a purchase order for 250

AEROCHAIR Executive Chairs. The chairs are being
exported from Santa Rosa, California and will arrive in
Halifax, Nova Scotia on March 4, 2021. You are the
Logistics Manager at the Halifax, Nova Scotia National
Office Supply regional distribution center and you instruct
the Customs Department to calculate the duties and
taxes associated with the importation of this product.
Product information is found on the included Commercial
Invoice.

Additional Information:
Exchange rate: $1 USD = $1.34 CAD
HS Code: See star on Customs Tariff page
GST Rate: standard
Legislative Authority: Correction under 32.2(2)

Using the Customs Tariff page and information provided you are asked to …

(1) Calculate the VFCC, VFD, CD, VFT, GST and TDTP for the shipment and
(2) Complete all B3 fields involved in question (1). A blank B3 form can be found on page 4.
(3) If an identical/similar Canadian made Executive Chair was available locally at cost price of
$550.00 CAD should you import the USA Executive Chair? Your answer must be
supported by calculations.
(4) This morning, March 22nd, 2021 the Receiving Department Manager advised you that 20
additional AEROCHAIR Executive chairs were found in the trailer during offloading. The
National Office Supply head office has agreed to keep the overage and the original
customs entry must be adjusted. Please complete the B2 calculations for the correction. A
blank B3 form can be found on page 5.

1
 Commercial Invoice

Ordered From:
Aero Furniture Factory Inc. Invoice Date:
6200 Lincoln Avenue March 2, 2021
Santa Rosa, California
25286 Invoice #
tele: (XXX) 888- 9988 500239

Ship To: Ship By: Schneider Transport

National Office Supply PO Reference: NOS6754
330 Howard Street Terms of Payment: Net 15 days
Halifax, Nova Scotia Terms of Sale: EXW Santa Rosa
B2N 6H8 Ship Date: March 02, 2021
Currency: US Dollars

Qty Stock # Description Unit Price Total

Executive Chair with height and

125 AEROCHAIR-A1 $225.00 $28,125.00
swivel adjustment (brown)

Executive Chair with height and

125 AEROCHAIR-E1 $225.00 $28,125.00
swivel adjustment (black)

Subtotal $56,250.00
Tax 0.00
Total $56,250.00
Make all checks payable to Commercial Invoice
If you have any questions concerning this invoice, please contact:
Mrs Smith, Aero Furniture Factory, Tele: XXX-999-8888

Thank you for your business!

2
3
B3 Form

4
B2 Form