DISTRIBUTOR BASE LANDED COST / UNIT
USD 54.00
USD54,002 shipment · recoverable VAT excluded
INTERACTIVE DEMO (ENGLISH) · MERIDIAN-001 · CASE DATE 2026-11-03
Would you appoint this distributor?
Meridian Industrial Supply Ltd · HF-200 industrial transfer pump · 1,000 units
HOLD EXCLUSIVITY & FIRST SHIPMENT
Four open issues. No commitment yet.
Payment account and importer unresolved; base margin passes, both downside scenarios miss the 30% target.
Next: reconcile the marketing beneficiary
Evidence due 6 Nov: distributor finance supplies; exporter finance independently checks.
Quote refresh 14 Nov · expires 15 Nov · client decision 20 Nov
Inspect the four resolution conditions ↓BASE REQUESTED EXPORTER EXPOSURE
USD 60,000.00
USD48,000 credit + USD12,000 advance. Marketing payment blocked.
Stress exposure USD 61,440.00.
CASE AT A GLANCE
4open issues9source records
Trace the evidence ↓DISTRIBUTOR MARGIN / 30% TARGET
32.50%Base assumptions
28.93%Price + freight stress
25.30%VAT recovery unavailable
Exporter production margin is not modelled.
Inspect scenario assumptions ↓Resolution tracker
↗Completion of the four issue conditions
0/4issues resolved
All 4 remain open
Open Resolved
Resolution progress, not a safety rating. Appointment remains on HOLD.
Evidence landscape
↗Supporting records by area · count scale 0–4
Records overlap across areas. Document present ≠ satisfactory evidence. Importer evidence is still missing.
Margin sensitivity
↗Three independent scenarios · distributor gross margin
Base selected · 32.50% margin · USD54.00/unit
Select a point to update the detailed costs. VAT unavailable uses base prices; it is not added to the stress scenario.
What must happen next
November 2026- Evidence / termsMarketing account names a different companyDistributor finance lead↗
- Evidence / termsImporter responsibility is still unknownDistributor operations lead↗
- Evidence / terms45 outlets claimed; 18 active in the ledgerDistributor sales director↗
- Evidence / terms24-month exclusivity without purchase minimumsExporter commercial lead↗
- Assigned actionRefresh freight quoteMina Park · export manager
- Expiry markerFreight quote expiresNot an assigned action
- Client decisionClient appointment decisionMina Park · export manager
WHAT CAN CHANGE THE DECISION
Four clear issues. Specific conditions to resolve.
2 blockers · 2 high concerns
Marketing account names a different company
USD12,000 requested to a third-party beneficiary without documented authority.
Decision impactHold the marketing payment; relationship and authority must be reconciled. Do not infer fraud.
Evidence & resolution condition
Sources E6
Supply bank confirmation, mandate and verified counterparty instructions; exporter finance independently checks before any payment.
Evidence supplier: Distributor finance lead · due 6 Nov
Exporter-side verifier: Exporter finance controller; independent bank check
Importer responsibility is still unknown
A partner is mentioned, but no named importer undertaking or product-specific permission evidence is supplied.
Decision impactHold first shipment until responsibility and required permissions are evidenced and reviewed.
Evidence & resolution condition
Sources E8
Name the importing entity and supply its written undertaking and product-specific evidence for defined specialist review.
Evidence supplier: Distributor operations lead · due 9 Nov
Exporter-side verifier: Daniel Lee · analyst; defined specialist review still required
45 outlets claimed; 18 active in the ledger
12 duplicates and 15 inactive entries explain the difference. Active coverage is regional, not nationwide.
Decision impactNationwide exclusivity is not supported by the supplied channel evidence.
Evidence & resolution condition
Reconcile the account list and obtain independently checked customer references and a regional sales plan.
Evidence supplier: Distributor sales director · due 10 Nov
Exporter-side verifier: Daniel Lee · analyst; independently check references
24-month exclusivity without purchase minimums
First shipment on unsecured 30-day credit plus a USD12,000 marketing advance.
Decision impactUSD60,000 requested unsecured exporter exposure: USD48,000 goods receivable + USD12,000 advance. This excludes additional loss or recovery costs.
Evidence & resolution condition
Negotiate a capped nonexclusive pilot, secured or prepaid first order, milestones and exit rights; client decides after review.
Evidence supplier: Exporter commercial lead · due 12 Nov
Exporter-side verifier: Mina Park · export manager; review revised terms
LANDED COST & CASH
Does the deal still work under pressure?
FOB origin port → distributor warehouse
USD56/unit is the margin threshold
USD80 net resale × (1 − 30% target). Base has USD1.998/unit headroom; stress exceeds the limit by USD0.854/unit.
Stress: supplier price +3%, freight +USD800, storage +USD500; insurance unchanged. This is an exporter price increase, not inferred FX exposure from a USD quote. Exporter production cost and profit are not modelled.
VAT recovery unavailable: cash stays USD 59,758.52, but economic cost rises to USD 59.76/unit and gross margin falls to 25.30%.
Economic costAssumed recoverable VAT
LANDED COST / UNIT
USD 54.00
Excludes assumed recoverable import VAT
Shipment USD 54,002.00TOTAL DISTRIBUTOR SHIPMENT FUNDING
USD 59,758.52
Includes import VAT USD 5,756.52
Goods portion = exporter’s USD 48,000.00 receivable at day 30DISTRIBUTOR GROSS MARGIN
32.50% / 30% target
At USD 80 net resale price per unit
Above target : documentary blockers still applyEvery cost, from FOB to warehouse
Base assumptions · 1,000 unitsAll amounts in USD. FOB origin port to distributor warehouse.
| Component | Basis / assumption | Shipment | Per unit | Source |
|---|---|---|---|---|
| Goods · FOB, packing & origin costs included | 1,000 units; supplier price +0% | USD 48,000.00 | 48.000 | E1 |
| Ocean freight | One 20-foot shipment | USD 1,600.00 | 1.600 | E2 |
| Cargo insurance | Fixed allowance, unchanged in stress | USD 240.00 | 0.240 | E2 |
| Import duty · assumed | 5% × CIF 49840.00 | USD 2,492.00 | 2.492 | E3 |
| Customs clearance | Gross fee; no additional fee tax assumed | USD 300.00 | 0.300 | E3 |
| Terminal / port handling | Gross fee; no additional fee tax assumed | USD 450.00 | 0.450 | E3 |
| Inland delivery to warehouse | Gross fee; no additional fee tax assumed | USD 600.00 | 0.600 | E3 |
| Inspection / release | Gross fee; no additional fee tax assumed | USD 200.00 | 0.200 | E3 |
| Bank / settlement fee | Gross bank fee at day 30; E4 assumption | USD 120.00 | 0.120 | E4 |
| Exceptional storage | No delay assumed | USD 0.00 | 0.000 | E2 |
| Subtotal excluding import VAT | Includes non-recoverable duty and all modelled shipment fees | USD 54,002.00 | 54.002 | |
| Import VAT · assumed | 11% × (CIF USD 49,840.00 + duty USD 2,492.00); recoverable assumption | USD 5,756.52 | 5.757 | E3 |
| Total shipment cash requirement | Economic cost + recoverable VAT | USD 59,758.52 | 59.759 |
USD 1,840.00Before departure · freight & insurance
USD 9,798.52At arrival · duty, VAT, fees & storage
USD 48,120.0030 days after arrival · goods + bank settlement fee
Payment timing follows the stated terms; total funding is not all due at customs clearance. Per-unit rows shown to 3 decimals; shipment totals calculated to cents. FOB packing/origin costs included, not added twice. No other levy assumed.
LANDED COST / UNIT
USD 56.85
Excludes assumed recoverable import VAT
Shipment USD 56,854.00TOTAL DISTRIBUTOR SHIPMENT FUNDING
USD 62,869.24
Includes import VAT USD 6,015.24
Goods portion = exporter’s USD 49,440.00 receivable at day 30DISTRIBUTOR GROSS MARGIN
28.93% / 30% target
At USD 80 net resale price per unit
Below target : economics need revisionEvery cost, from FOB to warehouse
Price + freight stress · 1,000 unitsAll amounts in USD. FOB origin port to distributor warehouse.
| Component | Basis / assumption | Shipment | Per unit | Source |
|---|---|---|---|---|
| Goods · FOB, packing & origin costs included | 1,000 units; supplier price +3% | USD 49,440.00 | 49.440 | E1 |
| Ocean freight | One 20-foot shipment | USD 2,400.00 | 2.400 | E2 |
| Cargo insurance | Fixed allowance, unchanged in stress | USD 240.00 | 0.240 | E2 |
| Import duty · assumed | 5% × CIF 52080.00 | USD 2,604.00 | 2.604 | E3 |
| Customs clearance | Gross fee; no additional fee tax assumed | USD 300.00 | 0.300 | E3 |
| Terminal / port handling | Gross fee; no additional fee tax assumed | USD 450.00 | 0.450 | E3 |
| Inland delivery to warehouse | Gross fee; no additional fee tax assumed | USD 600.00 | 0.600 | E3 |
| Inspection / release | Gross fee; no additional fee tax assumed | USD 200.00 | 0.200 | E3 |
| Bank / settlement fee | Gross bank fee at day 30; E4 assumption | USD 120.00 | 0.120 | E4 |
| Exceptional storage | Stress allowance | USD 500.00 | 0.500 | E2 |
| Subtotal excluding import VAT | Includes non-recoverable duty and all modelled shipment fees | USD 56,854.00 | 56.854 | |
| Import VAT · assumed | 11% × (CIF USD 52,080.00 + duty USD 2,604.00); recoverable assumption | USD 6,015.24 | 6.015 | E3 |
| Total shipment cash requirement | Economic cost + recoverable VAT | USD 62,869.24 | 62.869 |
USD 2,640.00Before departure · freight & insurance
USD 10,669.24At arrival · duty, VAT, fees & storage
USD 49,560.0030 days after arrival · goods + bank settlement fee
Payment timing follows the stated terms; total funding is not all due at customs clearance. Per-unit rows shown to 3 decimals; shipment totals calculated to cents. FOB packing/origin costs included, not added twice. No other levy assumed.
LANDED COST / UNIT
USD 59.76
Includes non-recoverable import VAT
Shipment USD 59,758.52TOTAL DISTRIBUTOR SHIPMENT FUNDING
USD 59,758.52
Includes import VAT USD 5,756.52
Goods portion = exporter’s USD 48,000.00 receivable at day 30DISTRIBUTOR GROSS MARGIN
25.30% / 30% target
At USD 80 net resale price per unit
Below target : economics need revisionEvery cost, from FOB to warehouse
VAT recovery unavailable · 1,000 unitsAll amounts in USD. FOB origin port to distributor warehouse.
| Component | Basis / assumption | Shipment | Per unit | Source |
|---|---|---|---|---|
| Goods · FOB, packing & origin costs included | 1,000 units; supplier price +0% | USD 48,000.00 | 48.000 | E1 |
| Ocean freight | One 20-foot shipment | USD 1,600.00 | 1.600 | E2 |
| Cargo insurance | Fixed allowance, unchanged in stress | USD 240.00 | 0.240 | E2 |
| Import duty · assumed | 5% × CIF 49840.00 | USD 2,492.00 | 2.492 | E3 |
| Customs clearance | Gross fee; no additional fee tax assumed | USD 300.00 | 0.300 | E3 |
| Terminal / port handling | Gross fee; no additional fee tax assumed | USD 450.00 | 0.450 | E3 |
| Inland delivery to warehouse | Gross fee; no additional fee tax assumed | USD 600.00 | 0.600 | E3 |
| Inspection / release | Gross fee; no additional fee tax assumed | USD 200.00 | 0.200 | E3 |
| Bank / settlement fee | Gross bank fee at day 30; E4 assumption | USD 120.00 | 0.120 | E4 |
| Exceptional storage | No delay assumed | USD 0.00 | 0.000 | E2 |
| Subtotal excluding import VAT | Includes non-recoverable duty and all modelled shipment fees | USD 54,002.00 | 54.002 | |
| Import VAT · assumed | 11% × (CIF USD 49,840.00 + duty USD 2,492.00); not recoverable in this scenario | USD 5,756.52 | 5.757 | E3 |
| Total shipment cash requirement | Economic cost (VAT included) | USD 59,758.52 | 59.759 |
USD 1,840.00Before departure · freight & insurance
USD 9,798.52At arrival · duty, VAT, fees & storage
USD 48,120.0030 days after arrival · goods + bank settlement fee
Payment timing follows the stated terms; total funding is not all due at customs clearance. Per-unit rows shown to 3 decimals; shipment totals calculated to cents. FOB packing/origin costs included, not added twice. No other levy assumed.
Model boundary: one shipment, FOB Busan to the distributor warehouse. Excludes post-arrival inventory financing, ongoing warehousing, selling expenses and warranty costs. Gross margin is not net profit. VAT recovery timing, funding availability, resale demand and permissions are not established. Tradezur service fee and USD12,000 marketing support are separate commercial outlays, not shipment landed cost.
THE DECISION PATH
Resolve → review → reconsider a limited pilot
- Now: hold
No exclusive appointment, first shipment or marketing payment under the current unresolved terms.
- Evidence and terms
Reconcile beneficiary, document importer, reconcile channels, renegotiate credit/exclusivity. Owners and dates above.
- Client reconsiders
Only after defined specialist and commercial review: consider a capped nonexclusive pilot on secured/prepaid terms. No automatic clearance.
CANDIDATE SNAPSHOT
A plausible business, with material gaps
Identity matched to the proposal; incorporated 2018; 26 staff; 620m² warehouse; 4 service technicians. Unaudited revenue USD2.4m, reported cash USD62,000. E9
These facts do not prove solvency, funding availability, channel reach or product permissions. One named candidate assessed; no alternative distributor search. Assessment owner: Daniel Lee · trade analyst.
TRACE EVERY CLAIM
Nine source records
E1 · Exporter quote Q-1042026-11-02 · Commercial document
1,000 HF-200 pumps at USD 48 each. FOB Busan USD 48,000. Export packing, origin inland delivery and export clearance included. One 20-foot shipment. No other origin charge modelled.
Limit: Capacity requires supplier confirmation.
E2 · Forwarder quote F-272026-11-02 · Logistics quote
Ocean freight USD 1,600; cargo insurance USD 240; 24-day port-to-port estimate. Quote validity 15 November 2026. Stress assumption adds USD 800 freight, 3% supplier price increase and USD 500 storage.
Limit: Transit time is an estimate; delay probability is not modelled.
E3 · Broker worksheet B-182026-11-03 · Cost assumptions
Assumed market duty: 5% of goods + freight + insurance. Import VAT: 11% of CIF + duty. VAT assumed fully recoverable, with no recovery lag financing cost modelled. Clearance300; terminal450; inland600; inspection200, all USD and assumed final gross fees with no additional fee VAT. No other border levy assumed.
Limit: Invented rates and bases, not Korean or any actual destination law. No classification, origin preference or regulatory approval claimed.
E4 · Distributor commercial plan P-092026-11-01 · Distributor proposal
Claims 45 active outlets and USD 80 net-of-tax wholesale price. Requests 24-month exclusivity, 30-day credit from arrival on first USD 48,000 shipment and USD 12,000 marketing advance. Bank fee USD120, assumed final gross with no additional fee VAT, payable with the goods at day 30. Target distributor gross margin30%; proposed resale price is a plan, not an order.
Limit: Forecast only. No signed customer orders or credit assurance.
E5 · Channel reconciliation C-062026-11-03 · Documentary check
The 45-outlet proposal reconciles to 18 distinct active outlets, 12 duplicate names and 15 inactive entries in the supplied sales ledger. All 18 active accounts are in two eastern provinces; nationwide coverage is not evidenced.
Limit: Demand and capacity require independent confirmation.
E6 · Marketing payment instruction M-032026-11-03 · Payment document
USD12,000 marketing advance requested to Meridian Logistics Services rather than the proposed distributor. No agency mandate, ownership link or signed payment-authority document supplied.
Limit: Mismatch is a documentary concern, not a finding of fraud. No money sent.
E7 · Draft appointment agreement A-122026-11-02 · Contract document
24-month territory-wide exclusivity; no minimum purchases, performance milestones or short pilot exit. Proposed first order on 30-day unsecured credit.
Limit: Draft terms only; no agreement signed and no legal enforceability conclusion.
E8 · Importing arrangement request I-042026-11-03 · Missing evidence recorded
No named importer-of-record undertaking or product-specific permission evidence supplied. Distributor says a partner will handle imports, but the partner and responsibility are not documented.
Limit: Unknown, not a finding that the distributor lacks permission.
E9 · Company and service profile C-022026-11-03 · Company records
Company incorporated2018; 26 employees; one Eastport warehouse, 620 square metres; four service technicians; unaudited revenue USD2.4m and cash USD62,000. Register identity matches the proposal.
Limit: Unaudited cash does not establish available funding or creditworthiness. Product approvals, solvency and real credentials not verified.
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Demo case as of 3 November 2026. Companies, people, documents and figures are fictional; rates are scenario assumptions.