2.4 Importation costs

Question 1

Importation costs:

List 4 importation costs!

Name 2 examples for labelling laws.

Answer 1

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1. ) duty
2. ) taxes
3. ) customs
4. ) labelling laws
   e. g. USA 1,5 % abv
   e. g. USA health warnings

Question 2

Importation costs:

1. ) What is the typical range of a margin estimated by a distributor?
2. ) In which sector and why is the margin the highest?

Answer 2

1.) 5-25%

2.) hospitality sector
= higher costs
= larger, trained staff

Question 3

Importation costs:

Name 3 advantage and 2 disadvantage of having a distributor for a winery?

Answer 3

advantage:

• importer has knowledge of the market
• Knowledge of laws
• established clients
• logistic management

disadvantage:

• extra cost
• strict contracts