APPLICATION OF ADJUSTMENTS

SELLER’S BUYER’S
WAREHOUSE WAREHOUSE

INCOTERMS COMPUTATION
DETERMINATION OF CUSTOMS VALUE
ADJUSTMENTS 1. MANDATORY ADDITIONS
1. COMMISSION
2. ASSIST
CB Kirk Buduan 1. MANDATORY ADDITIONS
2. PERMISSIBLE DEDUCTIONS
3. ROYALTIES
4. PROCEEDS
APPLICABLE FOR ALL INCOTERMS

Review Director/Main Speaker – Practical Computation 5. PACKING

6. INSURANCE
7. TRANSPORTATION APLLICABLE FOR FAS,
8. LOADING/UNLOADING AND FCA,CPT,CIP IF
9. HANDLING/ HAULING SHIPMENT IS VIA SEA
2. PERMISSIBLE DEDUCTIONS
1. UNLOADING FROM VESSEL/AIRCRAFT
2024 PRACTICAL COMPUTATION TUTORIAL DAY O2 2. TRANSPORTATION COST
3. IMPORT CLEARANCES
4. IMPORT DUTIES AND TAXES

APPLICATION OF ADJUSTMENTS EXPENSES FOR INTERNATIONAL TRADE

SELLER’S BUYER’S
WAREHOUSE WAREHOUSE
ADJUSTMENTS

1. MANDATORY ADDITIONS
2. PERMISSIBLE DEDUCTIONS

MANDATORY ADDITIONS:

DV = CV + INS + FRT + ADJ ORIGIN OTHER CHARGES DESTINATION OTHER CHARGES

1. LOADING CHARGES TO 1. UNLOADING FROM - $ 100.00
COLLECTING VEHICLE - $ 50.00 VESSEL/AIRCRAFT
PERMISSIBLE DEDUCTIONS: 2. INLAND FREIGHT FROM 2. TRANSPORTATION COST - $ 150.00
NOTE: APPLICABLE FOR D TERMS ONLY SELLER’S WAREHOUSE TO 3. IMPORT CLEARANCES - $ 900.00
CARRIER - $100.00 4. IMPORT DUTIES AND TAXES - $ 1,500.00
DAP/DPU/DDP 3. HANDLING AT TERMINAL - $300.00
LESS: D. OC ( P.D.) 4. LOADING TO VESSEL - $150.00
CPT/CFR 5. CUSTOMS EXPORT
ADD: INSURANCE CLEARANCE - $250.00
DUTIABLE VALUE

EX WORKS COMPUTATION OF DUTIABLE VALUE FOR EXWORKS

SELLER’S
(EXW)
BUYER’S
WAREHOUSE WAREHOUSE ORIGIN OTHER CHARGES
1. LOADING CHARGES TO
COLLECTING VEHICLE - $ 50.00 TO COMPUTE FOR CV:
2. INLAND FREIGHT FROM CV = EXW + OC
SELLER’S WAREHOUSE TO
CARRIER - $100.00
TO COMPUTE FOR DV:
3. HANDLING AT TERMINAL - $300.00
$ 20,000.00 + $ 400.00 = $ 20,400.00 (FCA)
DV = CV + INS + FRT
4. LOADING TO VESSEL - $150.00
ORIGIN OTHER CHARGES 5. CUSTOMS EXPORT
1. LOADING CHARGES TO
$ 20,000.00 + $ 850.00 = $ 20,850.00 (FOB) COLLECTING VEHICLE - $ 50.00 CLEARANCE - $250.00
2. INLAND FREIGHT FROM
SELLER’S WAREHOUSE TO
___________________________________
CARRIER - $100.00 EX-WORKS VALUE - $ 20,000.00
3. HANDLING AT TERMINAL - $300.00
4. LOADING TO VESSEL - $150.00 OCEAN FREIGHT - $ 2,500.00
5. CUSTOMS EXPORT
CLEARANCE - $250.00 AIRFREIGHT - $ 500.00
INSURANCE - $ 1,000.00
 FREE CARRIER COMPUTATION OF DUTIABLE VALUE FOR FCA VIA AIR
SELLER’S
(FCA)
BUYER’S
WAREHOUSE WAREHOUSE ORIGIN OTHER CHARGES TO COMPUTE FOR DV:
1. LOADING CHARGES TO
DELIVERED AT SELLER’S
COLLECTING VEHICLE - $ 50.00
WAREHOUSE-
2. INLAND FREIGHT FROM
DV = CV + INS + FRT + ADJ
SELLER’S WAREHOUSE TO
CARRIER - $100.00
$ 20,000.00 + $ 300.00 = $ 20,300.00 3. CUSTOMS EXPORT DELIVERED AT THE CARRIER-
(FCA) (delivered at seller’s warehouse)
ORIGIN OTHER CHARGES CLEARANCE - $250.00 DV = CV + INS + FRT
1. LOADING CHARGES TO
___________________________________
COLLECTING VEHICLE - $ 50.00
$ 20,000.00 + $ 400.00 = $ 20,400.00 2. INLAND FREIGHT FROM EX-WORKS VALUE - $ 20,000.00
(FCA) (delivered to the carrier) SELLER’S WAREHOUSE TO
CARRIER - $100.00 AIRFREIGHT - $ 500.00
FCA = EXW + OC 3. HANDLING AT TERMINAL - $300.00
4. LOADING TO VESSEL - $150.00 INSURANCE - $ 1,000.00
5. CUSTOMS EXPORT
CLEARANCE - $250.00

COMPUTATION OF DUTIABLE VALUE FOR FCA VIA SEA FREE ALONGSIDE SHIP
SELLER’S
(FAS) BUYER’S
WAREHOUSE WAREHOUSE
ORIGIN OTHER CHARGES
1. LOADING CHARGES TO
TO COMPUTE FOR DV:
COLLECTING VEHICLE - $ 50.00
2. INLAND FREIGHT FROM VIA SEA:
SELLER’S WAREHOUSE TO FCA + INS + FRT + ADJ = DV
CARRIER - $100.00
3. HANDLING AT TERMINAL - $300.00 $ 20,000.00 + $ 700.00 = $ 20,700.00 (FAS)
4. LOADING TO VESSEL - $150.00
ORIGIN OTHER CHARGES
5. CUSTOMS EXPORT 1. LOADING CHARGES TO
CLEARANCE - $250.00 COLLECTING VEHICLE - $ 50.00
2. INLAND FREIGHT FROM
___________________________________ SELLER’S WAREHOUSE TO
EX-WORKS VALUE - $ 20,000.00 CARRIER - $100.00
3. HANDLING AT TERMINAL - $300.00
OCEAN FREIGHT - $ 2,500.00 4. LOADING TO VESSEL - $150.00
INSURANCE - $ 1,000.00 5. CUSTOMS EXPORT
CLEARANCE - $250.00

FREE ON BOARD
COMPUTATION OF DUTIABLE VALUE FOR FAS
SELLER’S
(FOB) BUYER’S
ALWAYS WITH ADJUSTMENT: LOADING TO VESSEL WAREHOUSE WAREHOUSE
ORIGIN OTHER CHARGES
1. LOADING CHARGES TO FAS = EXW + OC
COLLECTING VEHICLE - $ 50.00
2. INLAND FREIGHT FROM
TO COMPUTE FOR DV:
SELLER’S WAREHOUSE TO
CARRIER - $100.00
DV = FAS + INS + FRT + ADJ $ 20,000.00 + $ 850.00 = $ 20,850.00 (FOB)
3. HANDLING AT TERMINAL - $300.00
ORIGIN OTHER CHARGES
4. LOADING TO VESSEL - $150.00 1. LOADING CHARGES TO
5. CUSTOMS EXPORT COLLECTING VEHICLE - $ 50.00
2. INLAND FREIGHT FROM
CLEARANCE - $250.00 SELLER’S WAREHOUSE TO
___________________________________ CARRIER - $100.00
3. HANDLING AT TERMINAL - $300.00
EX-WORKS VALUE - $ 20,000.00 4. LOADING TO VESSEL - $150.00
OCEAN FREIGHT - $ 2,500.00 5. CUSTOMS EXPORT
CLEARANCE - $250.00
INSURANCE - $ 1,000.00
 C TERMS
COMPUTATION OF DUTIABLE VALUE FOR FOB
SELLER’S BUYER’S
ORIGIN OTHER CHARGES WAREHOUSE WAREHOUSE
1. LOADING CHARGES TO
COLLECTING VEHICLE - $ 50.00
FOB = EXW + OC
2. INLAND FREIGHT FROM
SELLER’S WAREHOUSE TO
CARRIER - $100.00
TO DERIVE FOR DV = CV + INS + FRT
CPT/CIP
3. HANDLING AT TERMINAL - $300.00
4. LOADING TO VESSEL - $150.00 CFR/CIF
5. CUSTOMS EXPORT CPT/CIP = MULTI-MODAL BLUE = TERMS OF DELIVERY
CLEARANCE - $250.00 RED = TERMS OF PURCHASE
CPT = FCA + FRT
___________________________________ CIP = FCA + INS + FRT
EX-WORKS VALUE - $ 20,000.00
CFR/CIF = SEA ONLY
OCEAN FREIGHT - $ 2,500.00
INSURANCE - $ 1,000.00 CFR = FOB + FRT
CIF = FOB + INS + FRT

CPT/CIP TERMS COMPUTATION OF DUTIABLE VALUE FOR CPT VIA

SELLER’S VIA AIR –VS-VIA SEA BUYER’S
AIR/SEA
WAREHOUSE WAREHOUSE
ORIGIN OTHER CHARGES
1. LOADING CHARGES TO
TO COMPUTE FOR DV:
COLLECTING VEHICLE - $ 50.00
2. INLAND FREIGHT FROM VIA AIR:
SELLER’S WAREHOUSE TO CPT + INS = DV
CPT/CIP CARRIER - $100.00

TO COMPUTE FOR DV:

ORIGIN OTHER CHARGES
3. HANDLING AT TERMINAL - $300.00 VIA SEA
1. LOADING CHARGES TO 4. LOADING TO VESSEL - $150.00
COLLECTING VEHICLE - $ 50.00
CPT + INS + ADJ = DV
VIA AIR: 5. CUSTOMS EXPORT
2. INLAND FREIGHT FROM
CPT + INS = DV
SELLER’S WAREHOUSE TO CLEARANCE - $250.00
CIP = DV
CARRIER - $100.00
___________________________________
3. HANDLING AT TERMINAL - $300.00
VIA SEA
4. LOADING TO VESSEL - $150.00 EX-WORKS VALUE - $ 20,000.00
CPT + INS + ADJ = DV
5. CUSTOMS EXPORT
CIP + ADJ = DV OCEAN/AIR FREIGHT - $ 2,000.00
CLEARANCE - $250.00

COMPUTATION OF DUTIABLE VALUE FOR CIP VIA CFR/CIF TERMS

AIR/SEA SELLER’S BUYER’S
WAREHOUSE WAREHOUSE
ORIGIN OTHER CHARGES
1. LOADING CHARGES TO TO COMPUTE FOR DV:
COLLECTING VEHICLE - $ 50.00
2. INLAND FREIGHT FROM
VIA AIR:
SELLER’S WAREHOUSE TO
CIP = DV CFR/CIF
CARRIER - $100.00
3. HANDLING AT TERMINAL - $300.00 ORIGIN OTHER CHARGES
4. LOADING TO VESSEL - $150.00
VIA SEA TO COMPUTE FOR DV:
1. LOADING CHARGES TO
COLLECTING VEHICLE - $ 50.00
5. CUSTOMS EXPORT CIP + ADJ = DV 2. INLAND FREIGHT FROM
CFR: SELLER’S WAREHOUSE TO
CLEARANCE - $250.00 CFR + INS = DV CARRIER - $100.00
___________________________________ 3. HANDLING AT TERMINAL - $300.00
CIF: 4. LOADING TO VESSEL - $150.00
EX-WORKS VALUE - $ 20,000.00 CIF = DV 5. CUSTOMS EXPORT
OCEAN/AIR FREIGHT - $ 2,500.00 CLEARANCE - $250.00
INSURANCE - $ 1,000.00
 D TERMS
COMPUTATION OF DUTIABLE VALUE FOR CFR/CIF
SELLER’S BUYER’S
WAREHOUSE WAREHOUSE
ORIGIN OTHER CHARGES
1. LOADING CHARGES TO TO COMPUTE FOR DV:
COLLECTING VEHICLE - $ 50.00
2. INLAND FREIGHT FROM
CFR:
SELLER’S WAREHOUSE TO
CFR + INS = DV
CARRIER - $100.00 DAP
3. HANDLING AT TERMINAL - $300.00
CIF: DPU
4. LOADING TO VESSEL - $150.00
CIF = DV DDP
5. CUSTOMS EXPORT
CLEARANCE - $250.00 TO COMPUTE FOR DV:
DAP/DPU/DDP: MULTI-MODAL
___________________________________
DAP/DPU/DDP
EX-WORKS VALUE - $ 20,000.00 AIR : FCA + FRT + D. OC
LESS: D.OC
SEA : FOB + FRT + D. OC
OCEAN FREIGHT - $ 2,500.00 CPT/CFR + INS = DV
INSURANCE - $ 1,000.00

COMPUTATION OF DUTIABLE VALUE FOR DAP VIA AIR ORIGIN OTHER CHARGES
1. LOADING CHARGES TO
ORIGIN OTHER CHARGES
COLLECTING VEHICLE - $ 50.00
COMPUTATION OF DUTIABLE VALUE
1. LOADING CHARGES TO
2. INLAND FREIGHT FROM
FOR DAP VIA SEA
COLLECTING VEHICLE - $ 50.00
2. INLAND FREIGHT FROM
TO COMPUTE FOR CV: SELLER’S WAREHOUSE TO

SELLER’S WAREHOUSE TO CV = DAP – (D. OC + FRT) CARRIER - $100.00

3. HANDLING AT TERMINAL - $300.00
CARRIER - $100.00
4. LOADING TO VESSEL - $150.00
TO COMPUTE FOR CV:
3. CUSTOMS EXPORT
TO COMPUTE FOR DV 5. CUSTOMS EXPORT CV = DAP – (D. OC + FRT)
CLEARANCE - $250.00
______________________________________
CV + INS + FRT CLEARANCE - $250.00

DESTINATION OTHER CHARGES

______________________________________
TO COMPUTE FOR DV
DESTINATION OTHER CHARGES
1. UNLOADING FROM VESSEL/AIRCRAFT - $ 200.00
1. UNLOADING FROM VESSEL/AIRCRAFT - $ 200.00
CV + INS + FRT
2. TRANSPORTATION COST - $ 300.00 2. TRANSPORTATION COST - $ 300.00
3. IMPORT CLEARANCES - $ 150.00 3. IMPORT CLEARANCES - $ 150.00
4. IMPORT DUTIES AND TAXES - $ 500.00 4. IMPORT DUTIES AND TAXES - $ 500.00

______________________________________ ______________________________________

EX-WORKS VALUE - $ 20,000.00 EX-WORKS VALUE - $ 20,000.00

AIRFREIGHT - $ 500.00 OCEAN FREIGHT - $ 2,500.00

INSURANCE - $ 1,000.00 INSURANCE - $ 1,000.00

ORIGIN OTHER CHARGES

COMPUTATION OF DUTIABLE VALUE FOR DPU VIA AIR 1. LOADING CHARGES TO
COMPUTATION OF DUTIABLE VALUE
COLLECTING VEHICLE - $ 50.00
ORIGIN OTHER CHARGES 2. INLAND FREIGHT FROM
FOR DPU VIA SEA
1. LOADING CHARGES TO SELLER’S WAREHOUSE TO
COLLECTING VEHICLE - $ 50.00 TO COMPUTE FOR CV: CARRIER - $100.00
TO COMPUTE FOR CV:
2. INLAND FREIGHT FROM CV = DAP – (D. OC + FRT) 3. HANDLING AT TERMINAL - $300.00
SELLER’S WAREHOUSE TO 4. LOADING TO VESSEL - $150.00
CV = DAP – (D. OC + FRT)
CARRIER - $100.00 5. CUSTOMS EXPORT
3. EXPORT CLEARANCE - $250.00 TO COMPUTE FOR DV CLEARANCE - $250.00 TO COMPUTE FOR DV
______________________________________ CV + INS + FRT ______________________________________
DESTINATION OTHER CHARGES DESTINATION OTHER CHARGES
CV + INS + FRT
1. UNLOADING FROM VESSEL/AIRCRAFT - $ 200.00 1. UNLOADING FROM VESSEL/AIRCRAFT - $ 200.00
2. TRANSPORTATION COST - $ 300.00 2. TRANSPORTATION COST - $ 300.00
3. UNLOADING AT BUYER’S WHOUSE - $ 250.00 3. UNLOADING AT BUYER’S WHOUSE - $ 250.00
4. IMPORT CLEARANCES - $ 150.00 4. IMPORT CLEARANCES - $ 150.00
5. IMPORT DUTIES AND TAXES - $ 500.00 5. IMPORT DUTIES AND TAXES - $ 500.00
______________________________________ ______________________________________
EX-WORKS VALUE - $ 20,000.00 EX-WORKS VALUE - $ 20,000.00
AIRFREIGHT - $ 500.00 SEAFREIGHT - $ 2,500.00
INSURANCE - $ 1,000.00 INSURANCE - $ 1,000.00
 ORIGIN OTHER CHARGES
ORIGIN OTHER CHARGES 1. LOADING CHARGES TO
1. LOADING CHARGES TO
COMPUTATION OF DUTIABLE COLLECTING VEHICLE - $ 50.00 COMPUTATION OF
COLLECTING VEHICLE - $ 50.00 VALUE FOR DDP VIA AIR 2. INLAND FREIGHT FROM DUTIABLE VALUE FOR DDP
2. INLAND FREIGHT FROM SELLER’S WAREHOUSE TO
SELLER’S WAREHOUSE TO CARRIER - $100.00
CARRIER - $100.00 TO COMPUTE FOR CV: 3. HANDLING AT TERMINAL - $300.00
TO COMPUTE FOR CV:
CV = DAP – (D. OC + FRT)
3. CUSTOMS EXPORT
CV = DAP – (D. OC + FRT) 4. LOADING TO VESSEL - $150.00
CLEARANCE - $250.00 5. CUSTOMS EXPORT
______________________________________ CLEARANCE - $250.00
TO COMPUTE FOR DV
DESTINATION OTHER CHARGES TO COMPUTE FOR DV ______________________________________
1. UNLOADING FROM VESSEL/AIRCRAFT - $ 200.00
CV + INS + FRT DESTINATION OTHER CHARGES
CV + INS + FRT
2. TRANSPORTATION COST - $ 300.00 1. UNLOADING FROM VESSEL/AIRCRAFT - $ 200.00
3. UNLOADING AT BUYER’S WHOUSE - $ 250.00 2. TRANSPORTATION COST - $ 300.00
4. IMPORT CLEARANCES - $ 150.00 3. UNLOADING AT BUYER’S WHOUSE - $ 250.00
5. IMPORT DUTIES AND TAXES - $ 500.00 4. IMPORT CLEARANCES - $ 150.00
______________________________________ 5. IMPORT DUTIES AND TAXES - $ 500.00

EX-WORKS VALUE - $ 20,000.00 ______________________________________

AIRFREIGHT - $ 500.00 EX-WORKS VALUE - $ 20,000.00
INSURANCE - $ 1,000.00 SEAFREIGHT - $ 2,000.00
INSURANCE - $ 1,000.00