Client is interested in expanding her sales of imported cocoa.  

Power Point for Cocoa - Download to MS Power Point

Question from Jenny
 Regarding the chocolate importation. the chocolate manufacturer works with FOB, CIF and EXWORKS TERMS.   I did my web research but I still would like to clarify. What would be the best option for me?
From SCORE Counselor, a member of our team – Sue Quadrino

The difference in shipping terms are:
FOB-freight on board.  Supplier is responsible for transportation from factory to ship.  Customs entry value is the FOB price.
CIF-terms are cost of goods insurance and freight charge.  Customs entry value is reduced by the cost of the insurance and freight.
EXWORKS-importer would cover cost of transportation to dock.
I would suggest that as a new importer, Jenny get quotes for all 3 terms.  Ultimately, I would recommend that she buy FOB and she could then get quotes from shippers here for freight (ocean or air) from Ecuador to NY.
Her chosen broker will inform her of duty rates, etc., but I expect that import duty for cocoa from Ecuador is free.  She would have to pay a Merchandise Processing Fee of .3464% with a minimum of $25.  There is also a very small percentage charged for ocean shipments (Harbor Maintenance Fee).  For new importers, and especially with food products the first shipments may be examined by Customs, costing approximately $500.  Jenny has been informed of this by her broker.

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