Exercise 18 a) Read the text about insurance for international rail transport

B) Explain the meaning of the following terms used in the dialogue.

Exercise 17 a) Read the dialogue.

B) Answer the following questions.

1. What kinds of duties are mentioned? 2. What are the main functions of import and export duties? 3. What transport documents should be presented to a customs officer? 4. What documents should be filled in for restricted goods? 5. What information is required for calculating duty rates?

c) What kind of duty do you think was imposed in each case?

1. An exporter in Switzerland sent a consignment of cheese to an importer in Sweden. 2. An importer in Japan wanted to buy cheap cameras from Taiwan. 3. A group of American tourists bought a quantity of expensive perfume while on holiday in France. 4. A German tobacco company imported cigars from Cuba. 5. An Indian tea company sent a large quantity of tea to England.

Paying Customs Duties and Taxes

A: What kind of taxes must be paid before the goods are handed over to legal entities and individuals?

B: They include customs duties, value-added tax and some special import taxes.

A: What is ad valorem duty and how is it calculated?

B: It is a tax charged as a percentage of the value of the goods, as distinguished from a fixed duty or tax. Calculation is based on the CIF value of goods, that is on cost, insurance and freight charges. Note, that freight charges should always be included in the customs value.

A: Are all imported goods liable to VAT?

B: Most of them, there is only a small number of exemptions. The tax rate is a fixed percentage of the customs value plus any customs duties and taxes collected by the Customs on importation.

A: What does a special tax mean?

B: This is a kind of tax to which only a certain types of goods are subject.

Ad valorem duty; CIF; a tax rate; a cost; freight charge; to be liable; a special tax; the Customs; a fixed duty.

As with any commercial transaction, there are risks associated with trading internationally. Three main risks arise in international trade. These are loss, damage and delay, including detention at customs. The contracts on transportation internationally should use Incoterms (International Commercial Terms) to specify exactly how these risks are shared between buyer and seller.

Incoterms are an internationally recognised set of trading terms that spell out exactly when responsibility for the costs and risks of a transaction shift from seller to buyer. This affects the insurance needs because the greater the costs you’re responsible for, the greater the insurance cover you’ll need to arrange.

A typical cargo insurance policy covers goods in transit via road, rail, sea or air. In its simplest form it provides cover against accidental damage and other risks. The other extreme is a comprehensive all-risk policy, covering a range of specified accidents – including damage during loading, theft and negligence.

The cost of your insurance and in which circumstances you’ll receive compensation will depend on:

· the value of the goods in transit

· the expiry date of the insurance policy

· whether the journey is domestic or international

Without insurance you have only the minimum protection for your goods because freight forwarders and carriers typically have limited liability in the event of loss, or damage or delay. This comes from internationally ratified conventions and the standard trading conditions of transport associations.

Дата добавления: 2014-12-23