Cotton T-shirts from India to Hamburg
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The prompt
A fictional retailer in Hamburg buys 20,000 cotton T-shirts from a factory in Tiruppur, India, at USD 4.00 each FOB. Sea freight is USD 0.30 a shirt and insurance USD 0.02. The EU tariff database (TARIC) showed a duty of 9.6 percent on 1 October 2026 for Indian cotton T-shirts that meet the EU's preference rules. Without them the duty is 12 percent. Clearance and port fees are EUR 0.05 a shirt and the truck to the warehouse EUR 0.08. Financing and holding the goods on the way and in stock cost 1.5 percent of their value. Assume USD 1.20 buys EUR 1. What is the landed cost per shirt, and what happens if the dollar strengthens to USD 1.08 per euro?
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