NTISthis.com

Evidence Guide: BSBINT407B - Prepare business advice on export Free on Board Value

Student: __________________________________________________

Signature: _________________________________________________

Tips for gathering evidence to demonstrate your skills

The important thing to remember when gathering evidence is that the more evidence the better - that is, the more evidence you gather to demonstrate your skills, the more confident an assessor can be that you have learned the skills not just at one point in time, but are continuing to apply and develop those skills (as opposed to just learning for the test!). Furthermore, one piece of evidence that you collect will not usualy demonstrate all the required criteria for a unit of competency, whereas multiple overlapping pieces of evidence will usually do the trick!

From the Wiki University

 

BSBINT407B - Prepare business advice on export Free on Board Value

What evidence can you provide to prove your understanding of each of the following citeria?

Identify relevant export invoice

  1. Identify the buyer and seller
  2. Identify the relevant contract and export invoice
  3. Consider definitions and differences in definitions of FOB value in determining FOB value of goods being exported from Australia
  4. Identify the International Commercial Terms INCOTERMS relevant to the contract
  5. Identify the party to the sales contract responsible for Australian export formalities from INCOTERMS
Identify the buyer and seller

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify the relevant contract and export invoice

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Consider definitions and differences in definitions of FOB value in determining FOB value of goods being exported from Australia

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify the International Commercial Terms INCOTERMS relevant to the contract

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify the party to the sales contract responsible for Australian export formalities from INCOTERMS

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Interpret invoice terms and currency

  1. Identify the components that constitute the price, in Australian or foreign currency, paid or payable and appearing on the invoice
  2. Identify INCOTERMS relevant to the invoice
  3. Identify currency used
Identify the components that constitute the price, in Australian or foreign currency, paid or payable and appearing on the invoice

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify INCOTERMS relevant to the invoice

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify currency used

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Adjust invoice price

  1. Identify adjustments
  2. Make additions and subtractions to the price
Identify adjustments

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Make additions and subtractions to the price

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Calculate export FOB value, applying currency conversion principles

  1. Apportion costs against exported goods using organisational requirements/policies/procedures
  2. Apply appropriate rate of exchange
Apportion costs against exported goods using organisational requirements/policies/procedures

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Apply appropriate rate of exchange

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Finalise business advice on export FOB value

  1. Complete advice on FOB value field on export entry or declaration
  2. Check calculations for accuracy and verify as required
  3. Retain and file completed documentation with relevant personnel in the enterprise
  4. Pass relevant business advice on to the client
Complete advice on FOB value field on export entry or declaration

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Check calculations for accuracy and verify as required

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Retain and file completed documentation with relevant personnel in the enterprise

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Pass relevant business advice on to the client

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assessed

Teacher: ___________________________________ Date: _________

Signature: ________________________________________________

Comments:

 

 

 

 

 

 

 

 

Instructions to Assessors

Evidence Guide

The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.

Overview of assessment

Critical aspects for assessment and evidence required to demonstrate competency in this unit

Evidence of the following is essential:

interpreting a range of export documentation to determine export FOB value as required for goods exported from Australia

documenting export FOB calculation as required by client

knowledge of legislation, codes of practice and national standards relevant to work role.

Context of and specific resources for assessment

Assessment must ensure:

access to an actual workplace or simulated environment

access to office equipment and resources

access to relevant workplace documents.

Method of assessment

A range of assessment methods should be used to assess practical skills and knowledge. The following examples are appropriate for this unit:

direct questioning combined with review of portfolios of evidence and third party workplace reports of on-the-job performance by the candidate

review of advice completed on FOB value field on export entry or declaration

oral or written questioning to assess knowledge of penalties and the infringement notice scheme as it applies to goods where the export FOB value is incorrect

assessment of business advice passed on to the client.

Guidance information for assessment

Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended, for example:

BSBINT408B Prepare business advice on the taxes and duties for international trade transactions.

Required Skills and Knowledge

Required skills

culturally appropriate communication skills to relate to people from diverse backgrounds and people with diverse abilities

numeracy skills to calculate FOB value

learning skills to maintain relevant knowledge of client products and services to be exported.

Required knowledge

identification and overview knowledge of key provisions of relevant legislation from all levels of government that affects business operations, codes of practice and national standards, such as:

Customs Act

Australian Harmonized Export Commodity Classification (AHECC) - introduction and explanatory notes

INCOTERMS

trade modernisation legislation: Customs Legislation Amendment and Repeal Act, Import Processing Charges Act, Customs Depot Licensing Charges Amendment Act

Trade Practices Act

contract law

World Trade Organisation determinations

organisational policies and procedures relating to business operations in import/export/customs brokerage/freight forwarding contexts

penalties and the infringement notice scheme as it applies to goods where the export FOB value is incorrect

Range Statement

The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.

Differences in definition of FOB value may include:

INCOTERMS definition of FOB, which states in part: 'This term can be used only for sea or inland waterway transport. If the parties do not intend to deliver the goods across the ship's rail, the FCA term should be used'

customs definition: 'The total free on board (FOB) value of the goods, including all costs incidental to the sale and delivery of the goods on to the exporting vessels/aircraft'

Australian export formalities may include:

A2 or B2 Licences, authorisations and formalities

Australian Harmonized Export Commodity Codes

Adjustments may include:

all costs that exclude international freight and insurance from the price including in the price all costs to bring the goods to the ship or aircraft side when exporting from Australia

Organisational requirements/policies/ procedures refer to:

factorisation where costs are proportioned over a line value (each line of the invoice for which there is a separate classification)

other relevant requirements outlined in policies and procedures for calculating FOB