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Which of the Following Is a Way That a Company

Question 68

Multiple Choice

Which of the following is a way that a company can lower costs by shipping unassembled goods to an FTZ in an importing country?


A) Have components manufactured in several countries and ship directly to distributor for assembly to lower manufacturing costs.
B) Reduce total shipment quantity count by reassembling goods onboard ocean vessel to reduce ocean transportation rates.
C) Declare components as obsolete inventory with no market value to lower import duties.
D) Tariffs may be lower because duties are typically assessed at a lower rate for unassembled versus assembled goods.
E) Ship smaller components by air carrier and larger components by ocean freight to reduce overall transportation costs.

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