Question

For an exporter in Turkey to quote CIF New York, they should not include which of the following costs:
(a) inland freight in New York
(b) international transportation insurance
(c) ocean transportation
(d) inland freight in Turkey

You are an importing company located in New York. You are purchasing denim jeans from a supplier in Brazil under FOB Brazilian port terms. Which cost(s) will you, the importer, have to pay separately from the price of the product:
(a) the cost of export clearance
(b) duty in New York
(c) inland freight in New York
(d) inland freight in Brazil

Answer 1

a) This is CIF New York i.e. cost, insurance, and freight are covered till the New York port. Once the goods are in New York, it is the buyer's responsibility to unload the goods and transport to final destination. Hence, Cost (A) is not be included.

b) FOB Brazil implies FOB origin i.e. seller's responsibility ends at Brazil's port. The export clearance is included in FOB price. The importer will have to pay 1. Import Duty in New York 2. Inland freight in New York (unless it is prepaid by the seller)