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A Company Can Lower Costs by Shipping Unassembled Goods to an FTZ

Question 74

Multiple Choice

A company can lower costs by shipping unassembled goods to an FTZ in an importing country through which of the following ways?


A) Reduce total shipment quantity count by reassembling goods onboard ocean vessel to reduce ocean transportation rates.
B) Declare components as obsolete inventory with no market value to lower import duties.
C) Ocean transportation rates are affected by weight and volume; unassembled goods may qualify for lower freight rates.
D) Ship smaller components by air carrier and larger components by ocean freight to reduce overall transportation costs.
E) Have components manufactured in several countries and ship directly to distributor for assembly to lower manufacturing costs.

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