Transposition/Backward
Computations
(Customs Practical Computations)
ANSWER KEY
1. FOB = ? SOLUTION
GIVEN:
CIF = EXW + O/C + INS + FRT
CIF = $30,000 $30,000 = EXW + 4% EXW + 250% O/C + 40%(FOB + INS)
O/C = 4% EXW $30,000 = 1.04EXW + 2.50(.04EXW) + 0.40(EXW + O/C + INS)
$30,000 = 1.04EXW + 0.1EXW + 0.40(EXW + .04EXW + 2.50(.04EXW)
INS = 250% O/C
$30,000 = 1.04EXW + 0.1EXW + 0.40(1.04EXW + 0.1EXW)
FRT = 40% (FOB + INS) $30,000 = 1.04EXW + 0.1EXW + 0.40(1.14EXW)
$30,000 = 1.04EXW + 0.1EXW + 0.456EXW
$30,000 = 1.596EXW
1.596 1.596
EXW= $18,796.99
FOB = EXW + O/C
FOB = EXW + 4% EXW
FOB = $18,796.99 + .04($18,796.99)
FOB = $18,796.99 + $751.88
FOB = $19,548.87
2. BF WITH VAT = ? SOLUTION
GIVEN:
VAT = P2,800,000 BF WITH VAT = (DV X .00125 + 5050) X 1.12
DV+ME = P20,600,000
R/D = 15% LC = VAT / .12
LC = P2,800,000 /.12
LC = P23,333,333.33
LC = DV + CUD + ME
LC = 20,600,000 + 15%DV
P23,333,333.33 = 20,600,000 + 15%DV
23,333,333.33 - 20,600,000 = 15%DV
.15DV = P2,733,333.33
.15 .15
DV = P18,222,222.22
BF WITH VAT = (DV X .00125 + 5050) X 1.12
BF W/VAT = (P18,222,222.22 X .00125 + 5050) X 1.12
BF W/VAT = P31,167.11
3. DV = ? SOLUTION
GIVEN:
DV+VAT = P3,900,000 P3,900,000 = DV+VAT
ME = P54,000 P3,900,000 = DV + [(DV + CUD + ME) X.12]
R/D = 5% P3,900,000 = DV + [(DV + 5%DV + P54,000) X.12]
P3,900,000 = DV + [(1.05DV + P54,000) X.12]
P3,900,000 = DV + 0.126DV + P6,480
P3,900,000 - P6,480 = 1.126DV
P3,893,520 = 1.126DV
1.126 1.126
DV = P3,457,833.04
4. DV = ? SOLUTION
GIVEN:
ME = P55,000 CUD+VAT BASE = P5,400,000
CUD+VAT BASE = P5,400,000 8%DV + (DV + CUD + ME +ET) = P5,400,000
ET = P450,000 8%DV + DV + 8%DV + P55,000 + P450,000 = P5,400,000
R/D = 8% .08DV + DV + .08DV + P55,000 + P450,000 = P5,400,000
1.16DV + P505,000 = P5,400,000
1.16DV = P5,400,000 - P505,000
1.16DV = P4,895,000
1.16 1.16
DV = P4,219,827.59
5. DV = ? SOLUTION
GIVEN:
ET+VAT = P970,000 ET+VAT = P970,000
ME = P75,000 P250,000 + VAT = P970,000
R/D = 3% VAT = P970,000 - 250,000
ET = P250,000 VAT = P720,000
TAKE NOTE: THAT THE
SHIPMENT WAS LC = VAT /.12
IMPROPERLY MARKED LC = P720,000 /.12
(5% DV) LC = P6,000,000
LC = DV + CUD +ME + ET + 5%DV
P6,000,000 = DV + 3%DV + P75,000 + P250,000 + 5%DV
P6,000,000 = DV + .03DV + P75,000 + P250,000 + .05DV
P6,000,000 = 1.08DV + P325,000
P6,000,000 - P325,000 = 1.08DV
P5,675,000 = 1.08DV
1.08 1.08
DV = P5,254,629.63
6. CIF = ? SOLUTION
GIVEN:
VAT = P250,000 LC = VAT /.12
ET = P450,000 LC = P250,000/.12
ME = P7,500 LC = P2,083,333.33
R/D = 15%
E/R = P43/$1 DV + CUD + ME + ET = LC
DV + 15%DV + P7,500 + P450,000 = LC
1.15DV + P457,500 = LC
1.15DV = P2,083,333.33 - P457,500
1.15DV = P1,625,833.33
1.15 1.15
DV = P1,413,768.12
CIF = DV / $43
CIF = P1,413,768.12/$43
CIF = $32,878.33
2. Mr. X imported several drums of dangerous cargoes for his newly opened business named "VERY SAFE
ENTERPRISE" located somewhere in Cebu. The importation has a CIF value of $34,314.00. How much would be
the value of FOB if O/C was 4% EXW; INS was 250% O/C; and FRT was 40% of FOB and INS.?
Given: SOLUTION
CIF = $34,314 $34,314 = EXW + O/C + INS + FRT
O/C = 4% EXW CIF = EXW + O/C + INS + FRT
INS = 250% O/C CIF = EXW + 4% EXW + 250% O/C + 40% (FOB + INS)
FRT = 40% FOB & INS CIF = EXW + .04EXW + 2.50(.04EXW) + .40[(EXW + O/C) + (250% O/C)]
FOB = ? CIF = EXW + .04EXW + 2.50(.04EXW) + .40[(EXW + .04EXW) + (2.50(.04EXW))]
CIF = EXW + .04EXW + 0.1EXW + .40(1.04EXW + 0.1EXW)
CIF = 1.14EXW + .40(1.14EXW)
$34,314 = 1.596EXW
1.596 1.596
EXW = $21,500
FOB = EXW + O/C
FOB = EXW + 4% EXW
FOB = $21,500 + .04 ($21,500)
FOB = $21,500 + $860
FOB = $22,360
3. An importation of various construction equipment were imported by Mr. X from Korea. Said transaction has a
CIF value of $50,557.00. Other information available were: O/C were 1% of EXW and INS; INS. was 4% EXW:
and FRT was 50% FOB. Compute the value of FOB.
Given: SOLUTION
CIF = $50,557 $50,557 = EXW + O/C + INS + FRT
O/C = 1% EXW & INS CIF = EXW + O/C + INS + FRT
INS = 4% EXW CIF = EXW + 1%(EXW + INS) + 4% EXW + 50% FOB
FRT = 50% FOB CIF = EXW + .01(EXW + .04EXW) + .04EXW + .50(EXW + O/C)
FOB = ? CIF = EXW + .01(EXW + .04EXW) + .04EXW + .50[EXW + .01(EXW + .04EXW)]
CIF = EXW + .01(1.04EXW) + .04EXW + .50[EXW + .01(1.04EXW)]
CIF = EXW + .0104EXW + .04EXW + .50(1.0104EXW)
CIF = 1.0104EXW + .04EXW + .5052EXW
$50,557 = 1.5556EXW
1.5556 1.5556
EXW = $32,500
FOB = EXW + O/C
FOB = EXW + 1%(EXW + INS)
FOB = $32,500 + 1%(EXW + 4%EXW)
FOB = $32,500 + $338
FOB = $32,838
4. Mr. X imported several containers of contraceptives intended for the up-coming Valentines this February. The
shipment has a CIF value of $29,588.00. How much would be the amount of FOB if INS was 5% FOB, FRT was
40% EXW and O/C were 2% EXW & FRT?
Given: SOLUTION
CIF = $29,588 $29,588 = EXW + O/C + INS + FRT
O/C = 2% EXW & FRT CIF = EXW + O/C + INS + FRT
INS = 5% FOB CIF = EXW + 2%(EXW + FRT) + 5%FOB + 40%EXW
FRT = 40% EXW CIF = EXW + 2%(EXW + 40%EXW) + 5%[EXW + 2%(EXW + 40%EXW)] + 40%EXW
FOB = ? CIF = EXW + .02(EXW + .40EXW) + .05[EXW + .02(EXW + .40EXW)] + .40EXW
CIF = EXW + .02(1.40EXW) + .05(EXW + .02(1.40EXW) + .40EXW
CIF = EXW + .028EXW + .05(EXW + .028EXW) + .40EXW
CIF = EXW + .028EXW + .05(1.028EXW) + .40EXW
CIF = EXW + .028EXW + .0514EXW + .40EXW
$29,588 = 1.4794EXW
1.4794 1.4794
EXW = $20,000
FOB = EXW + O/C
FOB = EXW + 2%(EXW + FRT)
FOB = $20,000 + 2%(EXW + 40%EXW)
FOB = $20,000 + $560
FOB = $20,560
5. Mr. X has an importation consisting of various mannequin from Korea which arrived last February 14, 2024 at
the port of Manila. The shipment has a CIF value of $47,128.00, other information would be INS was 4% FOB,
O/C were 2% EXW, FRT was $10,000.00. Also, EXW and INS had a lump sum amount of $36,428.00. Compute
for the value of FOB.
Given: SOLUTION
CIF = $47,128 $47,128 = EXW + O/C + INS + FRT
O/C = 2% EXW CIF = EXW + O/C + INS + FRT
INS = 4% FOB CIF = EXW + 2%EXW + 4%FOB + $10,000
FRT = $10,000 CIF = EXW + 2%EXW + 4%(EXW + 2%EXW) + $10,000
EXW & INS = $36,428 CIF = EXW + .02EXW + .04(EXW + .02EXW) + $10,000
FOB = ? CIF = EXW + .02EXW + .0408EXW + $10,000
$47,128 = 1.0608EXW + $10,000
$47,128 - $10,000 = 1.0608EXW
$37,128 = 1.0608EXW
1.0608 1.0608
EXW = $35,000
FOB = EXW + O/C
FOB = EXW + 2%EXW
FOB = $35,000 + 2%EXW
FOB = $35,000 + $700
FOB = $35,700
6. Ms. X imported several types of cosmetic products from Korea which arrived at port of Cebu last January 22,
2024. In the said shipment, CIF and INS had a lump sum amount of $66,755.00, also; FRT. was 50% of FOB and
INS., O/C were 4% EXW and the amount of INS, was 5% FOB. Compute the value of FOB.
Given: SOLUTION
CIF & INS = $66,755 $66,755 = CIF + INS
O/C = 4% EXW $66,755 = (EXW + O/C + INS + FRT) + (5%(FOB))
INS = 5% FOB = [EXW + 4%EXW + 5%(EXW + 4%EXW) + 50% (FOB + INS)] + [5 %(EXW + 4%EXW)]
FRT = 50% FOB & INS = [EXW + 4%EXW + 5%(EXW + 4%EXW) + 50% (FOB + 5%(FOB)] + [5 %(EXW + 4%EXW)]
FOB = ? = EXW + .04EXW + .05(EXW + .04EXW) + .50[EXW + .04EXW + .05(EXW + .04EXW)] + .05(EXW +.04EXW)
= 1.04EXW + .05(1.04EXW) + .50(1.04EXW + .05(1.04EXW)) + .05(1.04EXW)
= 1.04EXW + .052EXW + .50(1.092EXW) + .052EXW
= 1.092EXW + .546EXW + .052EXW
$66,755 = 1.69EXW
1.69 1.69
EXW = $39,500
FOB = EXW + O/C
FOB = EXW + 4% EXW
FOB = $39,500 + .04($39,500)
FOB = $39,500 + $1,580
FOB = $41,080
7. Mr. X imported several drums of anti-dandruff shampoo from Korea worth $12,608.00 in CIF terms. How much
is the FOB value if O/C & Insurance had a combined amount of $608.00; FRT was 20% EXW and Insurance was
4% FOB?
SOLUTION
Given:
CIF = $12,608 $12,608 = EXW + O/C + INS + FRT
INS = 4% FOB CIF = EXW + O/C + INS + FRT
FRT = 20% EXW CIF = EXW + $608 + 20%EXW
O/C & INS = $608 CIF = EXW + $608 + .20EXW
FOB = ? $12,608 = 1.20EXW + $608
$12,608 - $608 = 1.20EXW
$12,000 = 1.20EXW
1.20 1.20
EXW = $10,000
FOB = EXW + O/C
FOB = $10,000 + $608(= O/C + INS)
FOB = $10,608 - INS
FOB = $10,608 - 4% FOB
FOB = $10,608/ 1.04
FOB = $10,200
8. How much is the CIF value if the amount of VAT is P253,455.24; Excise Tax is P450,000.00; ME is P7,800.00;
Rate of Duty is 18% Ad. Val. and R/E of P43.00/$1.00?
Given: SOLUTION
VAT = P253,455.24
ET = P450,000.00 P253,455.24 = (DV + CUD + ME + ET) 12%
ME = P7,800.00 VAT = (DV + 18%DV + P7,800 + P450,000) .12
Rate of Duty = 18% VAT = (1.18DV + P457,800) .12
R/E = P43.00/$1.00 P253,455.24 = .1416DV + P54,936
CIF = ? P253,455.24 – P54,936 = .1416DV
P198,519.24 = .1416DV
.1416 .1416
DV = P1,401,972.03
P43/$1
CIF = $32,604
9. A shipment imported by Ms. X from Korea has a CIF value of $66,275.04. How much would be the EXW value if
Other Charges were 4% EXW; Insurance was 4% FOB and Freight was 10% FOB?
SOLUTION
Given:
CIF = $66,275.04 $66,275.04 = EXW + O/C + INS + FRT
O/C = 4% EXW CIF = EXW + 4%EXW + 4%(EXW + O/C) + 10%(EXW + O/C)
INS = 4% FOB CIF = EXW + 4%EXW + 4%(EXW + 4%EXW) + 10%(EXW + 4%EXW)
FRT = 10% FOB CIF = EXW + .04EXW + .04(EXW + .04EXW) + .10(EXW + .04EXW)
EXW = ? CIF = EXW + .04EXW + .04(1.04EXW) + .10(1.04EXW)
CIF = 1.04EXW + .0416EXW + .104EXW
$66,275.04 = 1.1856EXW
1.1856 1.1856
EXW = $55,900
10. Ms. X imported several sizes of glass frames from Korea. The shipment was quoted with CFR terms and valued
at $23,345.00. How much would be the FOB value if EXW was 90% FOB, O/C was 10% FOB and FRT was 15%
FOB?
Given: SOLUTION
CFR = $23,345
EXW = 90% FOB CFR = EXW + O/C + FRT
O/C = 10% FOB $23,345 = 90%FOB + 10%FOB + 15%FOB
FRT = 15% FOB $23,345 = .90FOB + .10FOB + .15FOB
FOB = ? $23,345 = 1.15FOB
1.15 1.15
FOB = $20,300
11. How much is the amount of FOB if CIF is amounting to $20,496.00 where insurance is 2% of FOB and a freight
charge of 10% FOB?
Given: SOLUTION
CIF = $20,496
INS = 2% FOB $20,496 = FOB + INS + FRT
FRT = 10% FOB CIF = FOB + INS + FRT
FOB = ? CIF = FOB + 2%FOB + 10%FOB
CIF = FOB + .02FOB + .10FOB
$20,496 = 1.12FOB
1.12 1.12
FOB = $18,300
12. An importation coming from China has a ME of P55,000.00. Also, the DV and VAT had a lump sum amount of
P3,947,600.00. How much is the amount of DV if it has a Rate of Duty of 5% ad. Val.?
Given: SOLUTION
DV & VAT = P3,947,600
ME = P55,000.00 P3,947,600 = DV + (DV + CUD + ME)12%
Rate of Duty = 5% DV & VAT = DV + (DV + 5%DV + P55,000) .12
DV = ? DV & VAT = DV + (1.05DV + P55,000).12
P3,947,600 = DV + .126DV + P6,600
P3,947,600 - P6,600 = 1.126DV
P3,941,000 = 1.126DV
1.126 1.126
DV = P3,500,000
13. Ms. X has an importation coming from Korea which arrived at port of Cebu last March 14, 2024. Said shipment
has a ME amounted to P60,000.00. Also, the CUD and VAT Base had a lump sum amount of P5,498,000.00 and
an excise tax amounted to P450,000.00. How much would be the amount of DV if it has a Rate of Duty of 8%
ad. val.?
Given: SOLUTION
ME = P60,000.00
CUD & VAT Base = P5,498,000 = CUD + VAT Base
P5,498,000 CUD & VAT Base = 8%DV + (DV + CUD + ME + ET)
ET = P450,000 CUD & VAT Base = 8%DV + (DV + 8%DV + P60,000 + P450,000)
Rate of Duty = 8% P5,498,000 = .08DV + DV + .08DV + P510,000
DV = ? P5,498,000 - P510,000 = 1.16DV
P4,988,000 = 1.16DV
1.16 1.16
DV = P4,300,000
14. Ms. X’s importation has a BC and VAT of P468,650.00. Also, BF and T. LC had a lump sum amount of
P3,629,300.00 and ME of P36,450.00 (exclusive of BC and BF). How much would be the amount of DV if it has
a Rate of Duty of 5% ad. val. and an excise tax of P250,000.00. (Said importation was covered with Letter of
Credit)
Given: SOLUTION
BC & VAT = P468,650
BF and T. LC = P3,629,300 P468,650 = BC + VAT
ME = P36,450 (excl. BC + BF) = (DV X .00125) + (DV + CUD + ME + BC + BF + ET)12%
Rate of Duty = 5% = .00125DV + (DV +5%DV + P36,450 + .00125DV + .00125DV + 5050 +P250,000).12
ET = P250,000 = .00125DV + (1.05DV + P36,450 + .0025DV + P255,050) .12
DV = ? = .00125DV + (1.0525DV + P291,500) .12
P468,650 = .00125DV + .1263DV + P34,980
P468,650 - P34,980 = .12755DV
P433,670 = .12755DV
1.12755 .12755
DV = P3,400,000
15. Mr. X imported several drums of cream coming from Korea that arrived at Port of Cebu last March 02, 2024. In
the said transaction, BC and VAT had a lump sum amount of P368,895.00 and a total ME of P30,000.00. How
much would be the amount of DV if it has an excise tax of P100,000.00 and a Rate of Duty of 8% ad. val.?
Given: SOLUTION
BC & VAT = P368,895
ME = P30,000 P368,895 = BC + VAT
ET = P100,000 = (DV X .00125) + (DV + CUD + ME + BC + BF + ET)12%
Rate of Duty = 8% = .00125DV + (DV +8%DV + P30,000 + P100,000).12
DV = ? = .00125DV + (1.08DV + P130,000) .12
P368,895 = .00125DV + .1296DV + P15,600
P368,895 – P15,600 = .13085DV
P353,295 = .13085DV
.13085 .13085
DV = P2,700,000
16. Mr. X has an importation consisting of various hand tools from Korea that arrived at Port of Manila last January
22, 2024. BF and VAT Base had a lump with an amount of P3,735,000.00 and excise tax of P150,000.00. It also
has an ME of P26,450.00 that were exclusive of BC and BF. How much would be the amount of DV if it has a
Rate of Duty of 4% ad. val.? (Shipment was covered with Letter of Credit)
Given: SOLUTION
BF & VAT Base = P3,735,000
ME = P26,450 P3,735,000 = BF + VAT Base
(exclu. BC & BF) = (DV X .00125 + P5050) + (DV + CUD + ME + BC + BF + ET)
ET = P150,000 = (.00125DV + P5050) + (DV +4%DV + P26,450 + .00125DV + .00125DV +
Rate of Duty = 4% 5050 + P150,000)
DV = ? = (.00125DV + P5050) + (1.04DV + P26,450 + .0025DV + P155,050)
= (.00125DV + P5050) + (1.0425DV + P181,500)
P3,735,000 = .00125DV + P5050 + 1.0425DV + P181,500
P3,735,000 – P186,550 = 1.04375DV
P3,548,450 = 1.04375DV
1.04374 1.04375
DV = P3,400,000
17. Mr. X has an importation coming from Korea which arrive at Port of Cebu last December 23, 2023. Excise tax
and VAT had a total amount of P975,880.00 while total ME were P75,000.00. How much would be the DV if
Rate of Duty was 3% ad. val. and Excise Tax was P250,000.00? Take note that the shipment was improperly
marked.
Given: SOLUTION
ET & VAT = P975,880
ME = P75,000.00 ET & VAT = P975,880
ET = P250,000 = P975,880 – P250,000
Rate of Duty = 3% VAT = P725,880
DV = ?
TAKE NOTE: THAT THE VAT = (DV + CUD + ME + ET + 5%DV) .12
SHIPMENT WAS VAT = (DV + .03DV + P75,000 + P250,000 + .05DV) .12
IMPROPERLY MARKED VAT = (1.08DV + P325,000) .12
(5% DV) P725,880 = .1296DV + P39,000
P725,880 - P39,000 = .1296DV
P686,880 = .1296DV
.1296 .1296
DV = P5,300,000
18. How much would be the amount of DV if CUD and BC had a lump sum amount of P61,500.00 and a Rate of
Duty of 5% ad. val.?
Given: SOLUTION
CUD & BC = P61,500
Rate of Duty = 5% CUD & BC = P61,500
DV = ? P61,500 = 5%DV + DV X .00125
P61,500 = .05DV + .00125DV
P61,500 = .05125DV
.05125 .05125
DV = P1,200,000
19. How much would be the amount of BF if BC and BF had a total amount of P11,800.00?
20. Using Question 19 how much is the BC?
Given: SOLUTION
BC & BF = P11,800
BF = ? P11,800 = BC + BF
BC = ? P11,800 = DV X .00125 + DV X .00125 + P5050
P11,800 = .00125DV + .00125DV + P5050
P11,800 – P5050 = .0025DV
P6750 = .0025DV
.0025 .0025
DV = P2,700,000
BF = = DV X .00125 + P5050
BF = P2,700,000 X .00125 + P5050
BF = P8,425
BC = DV X .00125
BC = P2,700,000 X .00125
BC = P3,375
21. Compute the value of BF if DV, BC and BF had a total amount of P3,614,050.00?,
22. Using Question 21 how much is the BC?
Given: SOLUTION
DV, BC & BF = P3,614,050
BF = ? P3,614,050 = DV + BC + BF
BC = ? P3,614,050 = DV + DV X .00125 + DV X .00125 + P5050
P3,614,050 = DV + .00125DV + .00125DV + P5050
P3,614,050– P5050 = 1.0025DV
P3,609,000 = 1.0025DV
1.0025 1.0025
DV = P3,600,000
BF = = DV X .00125 + P5050
BF = P3,600,000 X .00125 + P5050
BF = P9,550
BC = DV X .00125
BC = P3,600,000 X .00125
BC = P4,500
23. How much is the amount of bank charge if CUD, BC and BF had a lump sum amount of P889,550.00 and
subject to 15% Rate of Duty?
Given: SOLUTION
CUD, BC & BF = P889,550
Rate of Duty = 15% P889,550 = CUD + BC + BF
BF = ? P889,550 = 15%DV X .00125 + DV X .00125 + P5050
BC = ? P889,550 = [Link] + .00125DV + .00125DV + P5050
P889,550 – P5050 = .1525DV
P884,500 = .1525DV
.1525 .1525
DV = P5,800,000
BF = = DV X .00125 + P5050
BF = P2,700,000 X .00125 + P5050
BF = P12,300
BC = DV X .00125
BC = P2,700,000 X .00125
BC = P7,250
24. Mr X imported several drums of anti-urging cream intended for the entire nation to stop the rapid growth of
population. His shipment has a VAT amounting to P2,894,052.00. Also, DV and ME had a lump sum value of.
P20,632,100.00 and Rate of Duty of 17% ad. Val. Based on the information above, how much would be the
amount of brokerage fee, gross of VAT?
Given: SOLUTION
VAT = P2,894,052
DV & ME = P20,632,100 VAT = P2,894,052
Rate of Duty = 17% LC = VAT/.12
BF, gross of VAT = ? LC = P24,117,100
LC = DV + CUD + ME
P24,117,100 = 17%DV + P20,632,100
P24,117,100 – P20,632,100 = .17DV
P3,485,000 = .17DV
.17 .17
DV = P20,500,000
BF = DV X .00125 + P5050
BF = P20,500,000 X .00125 + 5050
BF = 30,675
x 1.12 (VAT)
P34,356 = BF, gross of VAT
25. Ms. X imported bulk shipment from one of the ASEAN countries to avail for the preferential treatment. The
said import has a total gross weight of 846,560.85 oz. and net weight of 800,000 oz. How much would be the
wharfage due, net of VAT if it was discharged via shipside at Port of Cebu?
Given: SOLUTION
T. Gross Weight = 846,560.85 oz
NET Weight = 800,000 oz T. Gross Weight = 846,560.85 oz (higher)
WD, net of VAT =? NET Weight = 800,000 oz
WD Outport – P17/MT via shipside
846,560.85 oz X 1lb/16oz X .4536kg/1lb X 1MT/1,000kg = 24MT
WD = 24MT X P17/MT
WD = P408