Overview
Export Quotation
Instructions
Your manager’s memo to you is below. In it, your manager gives you several tasks to perform. You are expected to use available resources to develop a thorough and accurate response. Your report should start with standard business heading and format. It should be written in complete sentences. The Example GM-Challenge Business Report (attached) in Module 1 shows a business report with its parts.
Structure your business report as follows:
Heading - Use a standard business heading
Purpose Statement - State the report's overall purpose in your own words in an initial paragraph. This statement tells your manager why s/he is receiving a report from you and what info was requested of you.
Task Responses - Next, respond to each of the assigned tasks in sequence, numbering your responses accordingly. For each task:
* Restate the Overall Task: Begin by restating the overall task in your own words (what the task is) to verify your understanding of it to your manager.
* Respond to Each Part of the Task: Complete responses include (A/B/C) as indicated:
(A.) Written responses that summarize relevant source info and/or justify your thinking,
(B.) Legible supporting images that show the relevant source info used, and
(C.) Weblinks directly to the relevant source info so your manager can easily retrieve it.
* Note: The letters (A/B/C) will be used in your manager’s memo as a reminder to include them.
Legible supporting images are a key part of your response. These images do not replace your written answers, they only show the relevant source info used. The supporting images should be visible in your report, not included as files. Screenshot or screen clip them into your response. Details on how to insert a supporting image into your GM-Challenge using the screenshot or screen clipping tools can be found HERE. Supporting images should be legible so stretch them to make them fit the width of the page. Images should then be large enough to read.
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To: Kiya Cummings – Musgrave Pencil Company’s Assistant Global Marketing Manager From: Earl E. Byrd - Musgrave Pencil Company’s Global Marketing Manager Date: Aug 31, 2025 Subject: Export Quotation
Musgrave Pencil Company recently participated in an international trade show. Your sales representatives were pleased to meet several potential buyers. A foreign buyer located in Brunei has since requested a export price quote. This is a common first step in negotiating an export sale.
You have been tasked with providing some info for our management team to help complete the Export Quotation Worksheet for this sale. Accurate info is very important as it will serve as the foundation for Musgrave Pencil Company’s export price quote. Ten specific tasks are provided below. Respond in a business report using the task numbers/letters and sequence provided. Your business report should include a heading, purpose statement, and complete responses to all tasks. Weblinks to sources you might find helpful are included in the italic font. If they are not functioning correctly, seek another resource.
The Export Quotation Worksheet is included (attached). It is an Excel spreadsheet. Open the file and enter the proper information in the yellow, pink, and blue boxes in the spreadsheet. (Yellow boxes should have various costs, fees and taxes, etc. Pink boxes should have the Incoterm's geographic location. Blue boxes should have the Incoterm prices that are automatically calculated by Excel.) Keep all costs, prices and calculations in USD.
1. St. Andrew’s Schools (YOUR BUYER) may request an ExWorks (EXW) price at Musgrave Pencil Company’s business location in Tennessee. The price of YOUR PRODUCT is 35,000 USD. YOUR BUYER's order could be ready for shipment in about one month. It is packed in one 40' standard Full Load Container (FCL).
In US Dollars (USD), how much would the ExWorks (EXW) price for Ceres 909 144 pack pencils be?
Note: An ExWorks (EXW) price would be the price in USDs that St. Andrew’s Schools (YOUR BUYER) would pay to Musgrave Pencil Company if they wanted to take possession of Ceres 909 144 pack pencils at Musgrave Pencil Company’s business location in Tennessee. St. Andrew’s Schools would then make all further arrangements to get Ceres 909 144 pack pencils to their business location for themselves.
a. Musgrave Pencil Company charges a 350 USD loading fee per container. Add the price of Ceres 909 144 pack pencils and the container loading fee to the Export Quotation Worksheet.
b. State the ExWorks (EXW) price in USDs for Ceres 909 144 pack pencils. Include an image of your Export Quotation Worksheet showing the EXW price calculation. (A/B)
2. Container ships are very large. They are loaded/unloaded in ports near the coast that handle shipping containers.
What would be a suitable container port in the US for Musgrave Pencil Company to use? What would be a suitable container port in (or near) Brunei for Musgrave Pencil Company to use?
a. Select a suitable US port near the coast that handles shipping containers. (If Musgrave Pencil Company is going to ship from the US West Coast, use the port of: Los Angeles, Long Beach, Seattle, or San Francisco. If Musgrave Pencil Company is going to ship from the US East Coast, use the port of: New York, Norfolk, Savannah, or Charleston. If Musgrave Pencil Company is going to ship from the Gulf of Mexico, use the port of: Houston, New Orleans, or Mobile.) The “World Sea Ports” tool on the Sea Rates website Worldwide Sea Ports | Shipping Ports - SeaRates. will help. You need a port with a "Container Terminal" which means they can handle shipping containers. Once the US is selected on the website, the ports with a Container Terminal are identified in red. (A/B/C)
b. Select a suitable port for shipping containers on the coast in or near Brunei that is close to St. Andrew’s Schools business location. (This port will be referred to as the foreign port.) The “World Sea Ports” tool on the Sea Rates website Worldwide Sea Ports | Shipping Ports - SeaRates will help. You will need a port with a "Container Terminal" which means they can handle shipping containers. Once Brunei is selected on the website, the ports with a Container Terminal are identified in red. (A/B/C)
3. St. Andrew’s Schools may request a Free Along Side (FAS) price at the US port you selected. To determine this price, Musgrave Pencil Company needs to identify service providers and estimate the costs for US land transportation and land cargo insurance from Musgrave Pencil Company’s business location in YOUR STATE to the US port you selected.
What would be a suitable trucking company in Tennessee and how does Musgrave Pencil Company contact it? What would be a suitable land cargo insurance company in Tennessee and how does Musgrave Pencil Company contact it? What is the distance from Musgrave Pencil Company location to the US port you selected? In US Dollars (USD), how much would the Free Along Side (FAS) price for Ceres 909 144 pack pencils be?
NOTE: A Free Along Side (FAS) price would be the price in USDs that St. Andrew’s Schools would pay to Musgrave Pencil Company if they wanted to take possession of Ceres 909 144 pack pencils at the US port you selected. St. Andrew’s Schools would then make all further arrangements to get Ceres 909 144 pack pencils to their business location for themselves.
a. Provide the name and contact info (i.e., phone number, email address, etc.) for a regional trucking company operating in Tennessee. (A/B/C) Provide the homepage for that trucking company. (B/C)
b. Provide the name and contact info (i.e., phone number, email address, etc.) for an insurance company that provides land cargo insurance in Tennessee. (A/B/C) Provide the homepage for that insurance company. (B/C)
c. Provide a map showing the trucking route from Musgrave Pencil Company’s location to the US port you selected. Determine the distance in miles. (A/B/C)
d. Determine the cost of US land transportation. For US land transportation, use a cost estimate of 3.00 USD per mile. Note: There is a 300 USD minimum for US land transportation. Show your calculations. Add this info to the Export Quotation Worksheet. (A/B)
e. Determine the cost of land cargo insurance. For land cargo insurance, use a cost estimate of 2% of the price of Ceres 909 144 pack pencils. Show your calculations. Add this info to the Export Quotation Worksheet. (A/B)
f. State the Free Along Side (FAS) price in USDs for Ceres 909 144 pack pencils at the US container port you selected. Include an image of your Export Quotation Worksheet showing the FAS price calculation. (A/B)
4. There are many container shipping companies. Musgrave Pencil Company would like to know some options that are available as that might provide some flexibility with regard to scheduling.
What are two container shipping companies that provide service between the US port you selected and the foreign port in Brunei you selected? Do these container shipping companies offer container tracking services so our company can monitor the location of our shipment? What additional support (i.e., value-added) services does each of these container shipping companies offer?
a. Provide the name and contact info (i.e., phone number, email address, etc.) for two container shipping companies that provide service between the US port you selected and the foreign port in Brunei you selected. (A/B/C) Provide the homepage for those container shipping companies. (B/C) The container shipping companies that serve various ports can be found using the “Sea Lines Explorer" tool on the SeaRates website Sea Lines Explorer | Shipping Companies List - SeaRates.. Once you select both the US and the foreign port, a search will identify the container shipping companies that serve these ports.
b. Indicate whether these container shipping companies offer container tracking services? (A/B/C)
c. Indicate additional support (i.e., value-added) services provided by each of these container shipping companies. (A/B/C)
5. St. Andrew’s Schools may request a Cost/Insurance/Freight (CIF) price at the foreign port in Brunei you selected. To determine this price, Musgrave Pencil Company needs to estimate the costs for ocean transportation and marine cargo insurance from the US port you selected to the foreign port in Brunei you selected.
What is the approximate transit time for ocean shipping between the US port you selected and the foreign port in Brunei you selected? In US Dollars (USD), how much would the Cost/Insurance/Freight (CIF) price for Ceres 909 144 pack pencils be?
NOTE: A Cost/Insurance/Freight (CIF) price would be the price in USDs that St. Andrew’s Schools would pay to Musgrave Pencil Company if they wanted to take possession of Ceres 909 144 pack pencils at the foreign port in Brunei you selected. St. Andrew’s Schools would then make all further arrangements to get Ceres 909 144 pack pencils to their business location for themselves.
a. Provide a map showing the shipping route from the US port you selected to the foreign port in Brunei you selected. (B/C) Determine the distance in miles and approximate transit time. (A/B/C) Use the Distance & Time tool Distance & Transit Time Calculator - SeaRates on the SeaRates website to obtain the distance and approximate transit time in days between the two shipping ports.
b. Determine the cost of ocean transportation. Add this info to the Export Quotation Worksheet. (A/B/C) Use one of the following two approaches. Use a freight quote tool like the "Logistics Explorer From: / To: / Type: FCL | Searates on the SeaRates website to obtain an approximate price range in dollars and transit time in days between the two shipping ports. If that tool does not provide a shipping rate, use the "Ship Schedules" tool Vessel Scheduling Tool | Track Vessels Online - SeaRates on that same website to get some options for shipping lines and transit time. Using a shipping date some weeks in the future may help. Note: Be sure to use a shipping port that handles containers, not an airport, or just a point in the city.
Note: Registration is NOT required to access any info required to complete an assignment. Companies will want you to register but it is not required by me.
If the SeaRates website does not provide you with results, some estimated shipping rates can be obtained at the MoverDB.com website 2025 Sea Freight Container Shipping Rates To & From The US. Do not request a quote. Go to the lower part of the webpage and there are some estimated shipping rates for containers between the East/West Coast of the US and many foreign countries.
c. Determine the costs of marine cargo insurance. For marine cargo insurance, use a cost estimate of 10% of the price of Ceres 909 144 pack pencils. Show your calculations. Add this info to the Export Quotation Worksheet. (A/B)
d. State the Cost/Insurance/Freight (CIF) price in USDs for Ceres 909 144 pack pencils at the foreign port in Brunei you selected. Include an image of your Export Quotation Worksheet showing the CIF price calculation. (A/B)
6. In addition to expected costs and transit times, Musgrave Pencil Company would like to be comfortable with the level of risk to their timeline. Waterways near ports can become congested, creating delays. Port congestion is the expected delay your container ship may face upon arriving at a port.
How busy does the ship traffic around the foreign port in Brunei appear to be? Is port congestion causing delays at the foreign port you selected and if so what are typical number of days of delay in recent weeks? Does ship traffic and/or potential delays impact your interest in shipping to this foreign port?
a. Discuss how dense the ship traffic is around the foreign port in Brunei. Visit Shiptraffic.net, the website monitoring ship traffic SHIPTRAFFIC.NET | ShipTraffic.net. Under the Regions tab, select the body of water (i.e., strait, canal, gulf, bay, sea, etc.) near the foreign port for Brunei. Zoom in close enough to see the ship traffic in and around the foreign port you selected. Your supporting image needs to show some specific ships in/around your port. These will be represented by colored circles and triangles on the map. (A/B/C)
b. Determine the expected delay in days at the foreign port you selected. Visit Gocomet.com Port Congestion Status Data Worldwide - GoComet and search for your foreign port. Get an estimate of delay due to port congestion in recent weeks. (A/B/C)
c. Discuss whether the ship traffic impacts your interest in shipping to Brunei through this specific port. (A)
7. YOUR BUYER, St. Andrew’s Schools, may request a Delivery Duty Paid (DDP) price at the port in Brunei you selected. To determine this price, Musgrave Pencil Company needs to estimate the import duty and value-added taxes imposed by Brunei for Ceres 909 144 pack pencils.
How much are the import duty and value-added taxes imposed by Brunei Ceres 909 144 pack pencils. In US Dollars (USD), how much would the Delivery Duty Paid (DDP) price for Ceres 909 144 pack pencils be at the foreign port in Brunei you selected?
NOTE: The Delivery Duty Paid (DDP) price at the foreign port would be the price in USDs that St. Andrew’s Schools would pay to Musgrave Pencil Company if they wanted to take possession of Ceres 909 144 pack pencils after it has passed through customs at the foreign port in Brunei you selected. St. Andrew’s Schools would then make all further arrangements to get Ceres 909 144 pack pencils to their business location for themselves.
a. Determine the import tariff and value-added tax in USDs for Musgrave Pencil Company. (A/B/C) Visit SimplyDuty.com, a company that tracks import duty and tax calculations Import Duty Calculator - SimplyDuty. Complete the form using the costs and info you've determined. Use the HS code for Ceres 909 144 pack pencils you provided in the GM-Challenge 1. If the SimplyDuty.com website does not provide you with results, information on import tariffs and value-added tax rates may also be found in the US Country Commercial Guide Country Commercial Guides under the "Customs, Regulations & Standards" tab.
b. State the Delivery Duty Paid (DDP) price in USDs for Ceres 909 144 pack pencils at the foreign port in Brunei you selected. Include an image of your Export Quotation Worksheet showing the DDP price calculation. (A/B)
8. Goods imported into a country must comply with that country's import requirements and documentation. Musgrave Pencil Company wants to avoid red tape or other delays. Customs brokers are companies that specialize in the import process.
What are the import requirements for Brunei? Which specific import documents are needed for Brunei (i.e., how many and which ones)? Provide information for two customs brokers that have offices in Brunei.
a. Identify the import requirements and specific import documents that are needed for Brunei. Access the US Country Commercial Guide for Country Commercial Guides and look under the "Customs, Regulations & Standards" tab for "Import Requirements and Documentation". (A/B/C)
b. Provide the name and contact info (i.e., phone number, email address, etc.) for two customs brokers with offices in Brunei. (A/B/C) (Note: Private companies are preferred.) Provide the homepages for those customs brokers. (B/C)
c. Indicate the services provided by each of these customs brokers. (A/B/C)
9. St. Andrew’s Schools may request a Delivery Duty Paid (DDP) price at their business location. To determine this price, Musgrave Pencil Company needs to estimate the costs for land transportation and land cargo insurance from the foreign port in Brunei you selected to St. Andrew’s Schools business location.
What is the distance from the foreign port in Brunei you selected to St. Andrew’s Schools business location? In US Dollars (USD), how much would the Delivery Duty Paid (DDP) price for Ceres 909 144 pack pencils be at St. Andrew’s Schools business location?
NOTE: The Delivery Duty Paid (DDP) price at YOUR BUYER's business location would be the price in USDs that St. Andrew’s Schools would pay to Musgrave Pencil Company if they wanted to take possession of Ceres 909 144 pack pencils after it arrived at their business location and no further arrangements are needed.
a. Provide the name and physical address of St. Andrew’s Schools in Brunei. (A/B/C) Provide the homepage of St. Andrew’s Schools. (B/C) Provide contact info for YOUR BUYER (i.e., phone number, email address, etc.). (A/B/C)
b. Provide a map showing the trucking route from the port in Brunei you selected to St. Andrew’s Schools business location. Determine the distance in miles. (A/B/C)
c. Determine the cost of land transportation in Brunei. For land transportation, use a cost estimate of 3.00 USD per mile. Note: There is a 300 USD minimum for land transportation in Brunei. Show your calculations. Add this info to the Export Quotation Worksheet. (A/B)
d. Determine the cost of land cargo insurance in Brunei. For land cargo insurance, use a cost estimate of 2% of the price of Ceres 909 144 pack pencils. Show your calculations. Add this info to the Export Quotation Worksheet. (A/B)
e. State the Delivery Duty Paid (DDP) price in USDs for Ceres 909 144 pack pencils at St. Andrew’s Schools business location in Brunei. Include an image of your Export Quotation Worksheet showing the DDP price calculation. (A/B/C)
10. The more responsibilities Musgrave Pencil Company takes on, the higher the price it will charge St. Andrew’s Schools.
In US Dollars (USD), how much more expensive is the Delivery Duty Paid (DDP) price for Ceres 909 144 pack pencils at St. Andrew’s Schools business location than the ExWorks (EXW) price at Musgrave Pencil Company's business location in Tennessee?
a. Determine how much the price increased. Show your calculation. (A/B)
b. Discuss which cost, fee, tax, etc. had the greatest impact on the price increase.
c. Provide an image of the entire Export Quotation Worksheet all completed. (A/B)