GCECommerceWarehousing2020

An importer in Lagos stores 500 cartons of electronics in a bonded warehouse. He withdraws 200 cartons for local sale and re-exports the remaining 300 cartons. Import duty is charged at ₦2,000 per carton. How much import duty does the importer pay?

A₦1,000,000
B₦400,000CORRECT
C₦600,000
D₦500,000
AI
Toaster Teacher
Why the answer is B, and why the others tempt you.
Import duty is only paid on goods released for local consumption. The importer withdraws 200 cartons for local sale, so duty is payable on 200 cartons only. Duty = 200 × ₦2,000 = ₦400,000. The 300 cartons re-exported attract no import duty.
Want this in Pidgin, Yoruba, Igbo or Hausa? Sign up free →

Practice more Commerce questions

GCE Commerce has thousands more questions like this — with Worked answers on every one.

Start practicing free →See all Commerce questions