Export , Import

Export Import Procedures and Documentation Assignment - A

Question 1: What are INCO terms? Explain all INCO terms indicating the responsibility of the buyer and seller at various stages of the export cycle. Answer: INCOTERMS are designed to create a bridge between different members of the industry by acting as a uniform language they can use. Each INCOTERM refers to a type of agreement for the purchase and shipping of goods internationally. There are 13 different terms, each of which helps users deal with different situations involving the movement of goods. For example, the term FCA is often used with shipments involving Ro/Ro or container transport; DDU assists with situations found in intermodal or courier service-based shipments. INCOTERMS also deal with the documentation required for global trade, specifying which parties are responsible for which documents. Determining the paperwork required to move a shipment is an important job, since requirements vary so much between countries. Two items, however, are standard: the commercial invoice and the packing list. INCOTERMS were created primarily for people inside the world of global trade. Outsiders frequently find them difficult to understand. Seemingly common words such as "responsibility" and "delivery" have different meanings in global trade than they do in other situations. EX-Works One of the simplest and most basic shipment arrangements places the minimum responsibility on the seller with greater responsibility on the buyer. In an EX-Works transaction, goods are basically made available for pickup at the shipper/seller's factory or warehouse and "delivery" is accomplished when the merchandise is released to the consignee's freight forwarder. The buyer is responsible for making arrangements with their forwarder for insurance, export clearance and handling all other paperwork. FOB (Free On Board) One of the most commonly used-and misused-terms, FOB means that the shipper/seller uses his freight forwarder to move the merchandise to the port or designated point of origin. Though frequently used to describe inland movement of cargo, FOB specifically refers to ocean or inland waterway transportation of goods. "Delivery" is accomplished when the shipper/seller releases the goods to the buyer's forwarder. The buyer's responsibility for insurance and transportation begins at the same moment. FCA (Free Carrier) In this type of transaction, the seller is responsible for arranging transportation, but he is acting at the risk and the expense of the buyer. Where in FOB the freight forwarder or carrier is the choice of the buyer, in FCA the seller chooses and works with the freight forwarder or the carrier. "Delivery" is accomplished at a predetermined port or destination point and the buyer is responsible for Insurance. FAS (Free Alongside Ship)* In these transactions, the buyer bears all the transportation costs and the risk of loss of goods. FAS require the shipper/seller to clear goods for export, which is a reversal from past practices. Companies selling on these terms will ordinarily use their freight

forwarder to clear the goods for export. "Delivery" is accomplished when the goods are turned over to the Buyers Forwarder for insurance and transportation. CFR (Cost and Freight) This term formerly known as CNF (C&F) defines two distinct and separate responsibilities-one is dealing with the actual cost of merchandise "C" and the other "F" refers to the freight charges to a predetermined destination point. It is the shipper/seller's responsibility to get goods from their door to the port of destination. "Delivery" is accomplished at this time. It is the buyer's responsibility to cover insurance from the port of origin or port of shipment to buyer's door. Given that the shipper is responsible for transportation, the shipper also chooses the forwarder. CIF (Cost, Insurance and Freight) This arrangement similar to CFR, but instead of the buyer insuring the goods for the maritime phase of the voyage, the shipper/seller will insure the merchandise. In this arrangement, the seller usually chooses the forwarder. "Delivery" as above, is accomplished at the port of destination. CPT (Carriage Paid To) In CPT transactions the shipper/seller has the same obligations found with CIF, with the addition that the seller has to buy cargo insurance, naming the buyer as the insured while the goods are in transit. CIP (Carriage and Insurance Paid To) This term is primarily used for multimodal transport. Because it relies on the carrier's insurance, the shipper/seller is only required to purchase minimum coverage. When this particular agreement is in force, Freight Forwarders often act in effect, as carriers. The buyer's insurance is effective when the goods are turned over to the Forwarder. DAF (Delivered At Frontier) Here the seller's responsibility is to hire a forwarder to take goods to a named frontier, which usually a border crossing point, and clear them for export. "Delivery" occurs at this time. The buyer's responsibility is to arrange with their forwarder for the pick-up of the goods after they are cleared for export, carry them across the border, clear them for importation and effect delivery. In most cases, the buyer's forwarder handles the task of accepting the goods at the border across the foreign soil. DES (Delivered Ex Ship) In this type of transaction, it is the seller's responsibility to get the goods to the port of destination or to engage the forwarder to the move cargo to the port of destination uncleared. "Delivery" occurs at this time. Any destination charges that occur after the ship is docked are the buyer's responsibility. DEQ (Delivered Ex Quay) In this arrangement, the buyer/consignee is responsible for duties and charges and the seller is responsible for delivering the goods to the quay, wharf or port of destination. In a reversal of previous practice, the buyer must also arrange for customs clearance. DDP (Delivered Duty Paid) DDP terms tend to be used in intermodal or courier-type shipments. Whereby, the shipper/seller is responsible for dealing with all the tasks involved in moving goods from the manufacturing plant to the buyer/consignee's door. It is the shipper/seller's responsibility to insure the goods and absorb all costs and risks including the payment of duty and fees. DDU (Delivered Duty Unpaid)

This arrangement is basically the same as with DDP, except for the fact that the buyer is responsible for the duty, fees and taxes. Question 2: Examine the steps involved in processing of an export order. Answer: Among the most important Acts/publications which should be consulted by an exporter in connection with the processing of an export order, its execution and its fulfillment are the:
Customs Act
Carriage of Goods by Sea Act;
Foreign Exchange Regulation Act ;
Schedule of Charges of Goods in respect of the port of shipment;
Handbook of Export Promotion; Import-Export Policy Volumes I and II; and Handbook of Import-Export Procedures. The main parties involved in processing are the exporter, the foreign buyer, the negotiating bank, the shipping company, the insurance company, the Reserve Bank of India, the Chief Controller of Imports & Exports, the Collector of Customs, the Port Commissioners and the clearing and forwarding agents. Before processing the export order, a businessman/firm has to undertake certain activities which will enable him/it to accomplish his export obligation. These are as follows: Steps that need to be followed to process an export order: Step 1 Scrutinize the order with reference to the terms and conditions of the contract. The export order must specify the mode of payment in unmistakable terms such as the Letter of Credit, Documents, on Payment, Documents against Acceptance. The most important documents required by an importer are: a) Bill of Exchange b) Commercial Invoice c) On Board Clean Bill of Lading d) Marine Insurance Policy e) Packing list and f) Certificate of Origin. These should be given to the negotiating bank. Step 2 For a manufacture-exporter, after the export order has been confirmed, a `delivery note' should be sent to the works manager.~ This note should contain all relevant details pertaining to the specifications/requirements of the importer. Nothing should be left at the discretion of the works/factory manager. A merchant-exporter, who purchases the required goods from the market or gets them produced by other manufacturers, also has to provide the necessary specifications/requirements/instructions to the supplier of the goods to be exported. Step 3 After the goods have been manufactured/procured, the following is to be done: • Clearance from the Central Excise authorities by obtaining the Gate Pass (GP)-1 form if goods are to be removed under claim for rebate of duty, GP-2 form if goods are to be removed under a bond i.e. as per the terms and conditions of the Collector of Customs or AR-4/AR-4A form if the exporter wishes to avail the services of the Central Excise Officer for the purpose of having a physical verification at the factory and thereafter sealing of packages; • The concerned Export Inspection; c) A Railway Receipt has to be obtained if the goods are dispatched by train to the port of shipment. Step 4 Once the goods have been dispatched to the port, the Works/Factory manager is supposed to send a `dispatch advice' to the firm's Export Department. Then marine

insurance cover is solicited. At this stage, formalities regarding floor price regulations, canalization, certificate of origin, ECGC (Export Credit Guarantee Commission) cover need to be completed. Thereafter, the Export Department sends the following documents to its Clearing & Forwarding agent (henceforth called the agent): • Commercial Invoice • Original Export order • Original Letter of Credit • GR from showing RBI Code Number of the exporter • AR_4A/AR-4form • Excise gate pass • Packing & Weight Lists • Certificate of Inspection • Declaration form • Invoice • Export License where necessary • Purchase Memo • Railway receipt. Step 5 After the agent has taken control of the consignment, a shipping bill is prepared by him. Three kinds of shipping bills are to be prepared depending on the category of export goods. These are Free, Dutiable and Drawback shipping bills. Step 6 Once the shipping bill has been cleared by Customs, the agent forwards a copy of the shipping bill to the Shed Superintendent of the concerned Port Trust and thereafter a Dock Challan is made, which is then released to the agent after debiting the exporter's account with the concerned Port Commissioners. Step 7 A Mate's Receipt is prepared by the ship's export clerk and is given to the agent once port charges have been paid. The agent then forwards the relevant documents to the exporter. Step 8 After receiving the above documents from the agent, the exporter files a claim with the Maritime Collector of Central Excise forbade of excise duty.~ In the meantime, a shipment advice should be sent to the importer. Documents are then presented to the negotiating bank. Thereafter the documents are transmitted to the banker of the importer, after which the importer would take custody of the consignment once the goods reach their destination and other relevant formalities are completed are completed at that end.

Question 3: Examine the steps involved in Custom Clearance of Export Cargo. Answer: Once the pre shipment inspection of the export consignment is over and packing has been completed, the exporter should arrange for shipment of goods. At this stage, services of a clearing and forwarding agents should be taken to ensure timely and smooth shipment of goods. The various steps in involved in the process of custom clearance. These are as follow. 1- Documents required for custom clearance • Commercial invoice - 2 copies • Packing list - 2 copies • Copy of L/C or contact • ARE - 1 form - 3 copies • Quality inspection certificate • Annexure 'A' with deceleration • Exchange control deceleration (SDF/GR) • Custom copy of export authorization in case of restricted item 2- Submission of Documents to port trust authorities The documents are • Port trust copy of shipping bill - 2 copies • Export application (for payment of dock charges) - 2 copies • Cart chit - 2 copies This is necessary in case of export by sea only. 3- Payment of airport terminal storage and processing charges Exporter is required to pay the airport terminal storage and processing charges (TSP) to the airport authority. 4- Processing of documents The documents tendered are checked to as certain whether the same are in order and whether that is consistent. The detail of goods, FOB value, duty drawback rate (whenever applicable) and input output norms (whenever applicable) given on the shipping bill are checked by the inspector and the superintendent of customs. •

After processing of the documents, shipped bill and SDF/GRI form (original copies) are detached from the set of documents.

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At this stage export cargo is brought in accordance with carting order issued by the airlines to allow entry of cargo in the warehouse

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After the goods have been received in the warehouse the same are specified to physical examination. The superintendent of customs directs the inspector to physically inspect the goods and record on the duplicate and triplicate copy of the shipping bill.

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The superintendent of custom will finalize the record and on the basis the cargo is cleared for export

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The cargo is then shifted to the shed of airlines (in case of air shipment), in care of ICD the cargo is shifted to the container for shipment to the port. The customer, shipping company and railway authorities shall affix the seal on the container.

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After loading of cargo, bill of loading/ airway bill is issued by the shipping company/ airlines.

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Lastly, the exporter shall receive back export promotion copy of the shipping bill and duplicate copy of SDF/GR form as well as other documents.

Question 4: Discuss various methods that are used for making payment in International Trade Answer: There are many ways in which an importer can pay to the exporter. But the four basic mode of payments, which takes various shapes of payments, are Payment in Advance, Open Account Payment, Documentary Collections and Documentary Credits / Letter of Credit. Each method is explained below: Payment in Advance In 'payment in advance' method, the entire risk is put on the importer. Under this term of purchase, the importer makes full payment to the supplier before the shipment of goods are done. The importer trusts the supplier that the shipment of the product will be on time and the goods will be as advertised. This method of payment generally takes place under the following circumstances: • • •

If the importer has not been long established. If the credit status of the importer is doubtful, unsatisfactory and/or the political and economic risks of the country are very high. If the product is in high demand and the seller does not have to accommodate the importer's financing request in order to sell the product.

This method of payment do not involve any commercial bank and is therefore inexpensive. But, the buyer faces a high degree of payment risk as he can do nothing if the seller sends poor quality goods or incorrect or incomplete documentation. Open Account Payment This method allows the importer to make payments to the exporter at some specific date in the future without issuing any negotiable instrument, only evidencing his legal commitment to pay at the committed time. Usually, this method takes place when either the importer has a strong credit history or is well-known to the seller. This mechanism do not offers the seller any protection in case of non-payment. However, the exporter can structure this sale to minimize the risk of non-payment. He can reduce the repayment period and can retain title to the goods until the payment is made. Though all the risks but still open account payment is more prevailing in the international trade. Those exporters who offer such terms are increasingly obtaining credit insurance to mitigate the potential open account credit risks. Documentary Collections This term of payment offers an important bank payment mechanism. It serves the need of both, the exporter as well as the importer. In this mode of payment, the sale transaction is settled by the bank through an exchange of documents. Hence, it enables the payment and transfer of title simultaneously. Documentary Credits / Letter of Credit It is a credit instrument like letter of credit or back-to-back letter of credit. In this mode of payment, the buyer's bank undertakes to pay the seller when the terms and conditions

have been met. The bank issues documentary credits to a customer according to his creditworthiness. Documentary credits are subject to the international rules, Uniform Customs and Practice (UCP 500) - issued on 01 January 1994.

Question 5: (a): Write short notes on any three of the following: Answer: (a) Bill of lading – is a document issued by a carrier to a shipper, acknowledging that specified goods have been received on board as cargo for conveyance to a named place for delivery to the consignee who is usually identified. A through bill of lading involves the use of at least two different modes of transport from road, rail, air, and sea. The term derives from the verb "to lade" which means to load a cargo onto a ship or other form of transportation. (b)

FEMA - is an act that provides guidelines for the free flow of foreign exchange in India. It has brought a new management regime of foreign exchange consistent with the emerging frame work of the World Trade Organization (WTO). Foreign Exchange Management Act was earlier known as FERA (Foreign Exchange Regulation Act), which has been found to be unsuccessful with the proliberalization policies of the Government of India.

(c)

Types of Shipping Bill Duty free shipping bill – This type of shipping bills is printed on white paper and used for the goods for which neither duty nor cess is applicable. It is also used for the goods manufactured out of material imported under the duty free import. Dutiable Shipping bill - This type of shipping bill is used for the goods subject to export duty/cess on which duty drawback will be either allowed or not allowed. This is to be printed on yellow paper. Drawback Shipping Bill – This type of shipping bill is to be used for the export of goods on which Duty Drawback is available or to be made available for fixation. It is to be printed on green paper. Shipping Bill for Shipment of Excise Bond- This type of shipping bill is used when goods are imported for re-export and kept in bond. This is to be printed on blue paper. Coastal Shipping Bill – Export Coastal shipping Bill – This is used for shipment of goods from one port to another by sea within India.

Assignment - B

Question 1: What are the features of Export Processing Zones / Special Economic Zones? How are they helpful in promoting export from India? Answer: EPZs in India were set up by the government of India with the aim to initiate infrastructural development and tax holidays in various industrial sectors in the country. EPZ has incessantly accelerated the economic growth of the country by ensuring a flourishing export production. The export processing zones in India came into existence soon after the political independence, when India proclaimed the first Industrial Policy Revolution in the year 1948. It was from then that the actual industrial growth begun in India, which resulted in the constitution of the export processing zones later. Export promotion has always been the chief concern of the government of India and it strictly follows the ISI policy while carrying out all its activities. These brought about many industries that were given tax holidays and are devoid of all kinds of duties, levies and taxes. SEZ in India was introduced last April 2000 considering the need to enhance foreign investment and promote exports from the country and realizing the need that level playing field must be made available to the domestic enterprises and manufacturers to be competitive globally, the Government of India in April 2000 announced the introduction of Special Economic Zones policy in the country deemed to be foreign territory for the purposes of trade operations, duties and tariffs. To provide an internationally competitive and hassle free environment for exports, units were allowed be set up in SEZ for manufacture of goods and rendering of services. All the import/export operations of the SEZ units are on self-certification basis. The units in the Zone are required to be a net foreign exchange earner but they would not be subjected to any pre-determined value addition or minimum export performance requirements. Sales in the Domestic Tariff Area by SEZ units are subject to payment of full Custom Duty and as per import policy in force. Further Offshore banking units are being allowed to be set up in the SEZs. Question 2: What is EPCG scheme? What are the main provisions in the scheme? How has the scheme helped in promoting export from our country? Answer: The Export Promotion Capital Goods Scheme allows import of capital goods for pre production, production and post production (including CKD/SKD thereof as well as computer software systems) at 5% Customs duty subject to an export obligation equivalent to 8 times of duty saved on capital goods imported under EPCG scheme to be fulfilled over a period of 8 years reckoned from the date of issuance of license. Capital goods would be allowed at 0% duty for exports of agricultural products and their value added variants. The scheme aims to consolidate and accelerate India’s export growth in order to expand the manufacturing base for India’s exports including the small scale sector; incentives to status holders with premium on high growth; removal of restrictions to exports; measures to facilitate investments in Special Economic Zones (SEZs); reoriented export cluster development scheme and procedural simplification aimed at drastic reduction of transaction costs in order to make India globally competitive.

Question 3: Describe various principal and auxiliary documents used in International trade. Answer: Principal Documents: Commercial invoice – is a document used in foreign trade. It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders. Although there is no standard format, the document must include a few specific pieces of information such as the parties involved in the shipping transaction, the goods being transported, the country of manufacture, and the Harmonized System codes for those goods. A commercial invoice must also include a statement certifying that the invoice is true, and a signature. Packing list – A Packing List gives details of the contents of all the packages making up the consignments and is required by Custom’s authorities if the packing information is not shown on the invoice. The Packaging List is usually attached to the invoice. Bill of Lading – The Bill of Lading is common when goods are shipped by sea or where goods are packed in a container. Air way Bill – The Airway Bill replaced the previously known air consignment note, and it fulfils virtually the same function for Air Freight as the Bill of Lading does for Sea Freight. It contains information about the consignment and, by law, is required to be made out by the consignor or his agent. Certificate of Inspection – is required usually for import of industrial equipment, meat products and perishable merchandise. It certifies that the item meets the required specifications and was in good condition and correct quantity when it left port of departure. It is also called inspection certificate or inspection report. Certificate of Origin – A standard document that certifies the country where the product was made. A Certificate of Origin is sometimes required by the importing country’s authorities to prove that the goods originate from a particular country. This may be necessary to enable an importer to claim preferential import duty. Bill of Exchange – A writing binding the signer or signers to pay a certain sum at a future day or on demand, with or without interest, as may be stated in the document. The Bill of Exchange looks something like a cheque which is drawn on an overseas buyer, or even on a third party as designated in the export contact, for the sum agreed as settlement. Shipment Advice – letter or form sent by an exporter to a foreign buyer informing that the shipment of the ordered goods is on its way. A copy of the invoice and the packing slip may also be attached. Insurance Certificate - A document prepared by the exporter or the freight forwarder to provide evidence that insurance against loss or damage has been obtained for the goods to be exported. Auxiliary documents: Pro-forma Invoice – is an invoice which purports to represent what a final invoice with all attendant details will look like. Shipping Instructions – are instructions sent by the exporter giving details on how the goods were shipped and to be delivered.

Insurance Declaration – Insurance against loss or damage to goods, where the insured person informs the insurer of the value of these goods every month. Also, the cost of insuring them is based on their average value during the year. Application for Certificate of Origin – is a process wherein an exporter applies for a Certificate of Origin for goods to be exported to another country. Mate’s Receipt – is a document signed by an officer of vessel that substantiates receipt of shipment onboard the vessel. It is not a document of title and is issued as an interim measure until a proper bill of lading can be issued.

Case Study Question: Prepare a feasibility report to make your product more competitive in the export market by availing the provisions in the Foreign Trade Policy. Feasibility Report: Answer: Scope: Upgrade of production facility to increase percentage of exported gold from current rate of 15%. Affected area will be selling in the domestic market. Also, to avail of incentives as amended by the Foreign Trade Policy. The government will have to relinquish controls to promote entrepreneurship and improvement of export trade. Pros: -

Production facility will be modified to meet new export quotas. New machines will be purchased to handle new workload. Generate employment in the immediate area. Reduction of costs brought about by incentives as amended by the Foreign Trade Policy. More leeway to handle export business.

Cons: - Facility may be relocated to fit larger area. - High costs in purchase of machines and equipments. - Local market will be affected as the company will be concentrating on exports. Summary: This report aims to study the possibility of shifting the company’s concentration from import to export of Gold and Diamond Jewelry. It will also tackle the viability of the move to which the company will be undertaking. With the onset of the Foreign Trade Policy, the incentive schemes available supports export trade to a degree wherein which the exporter enjoys reduced cost of expenses from taxes to duties. The proliferation of Special Economic Zones and Export Processing Zones makes it easier for a company to transition from its current location to a more viable area for production and export. Advantages can be observed as the government along with its regulation strongly supports export of goods. Limitations are present as well to help protect from exploitation and unfair trading. Under the FTP, it will help exporters to upgrade their technologies for export infrastructure. The company can adopt a green policy as the policy provides additional incentives for it. Incentives under the FMS have been increased as well making it more profitable to export items rather than produce for local consumption. Regulatory and Principal Documents requirements were also made relaxed for better compliance. Increased life of existing machinery and plant equipments, export obligation on import spares, moulds etc. under the EPCG scheme has been reduced to 50% of normal specific export obligation. It is also in the best interest of the company to start exports of Gems and Jewelry as Duty Drawbacks has been allowed in the said items. Further, value limits of personal carriage have been increased from $2M to $5M in case of participation of overseas exhibitions. The limit in case of personal carriage, as samples, for export promotion tours, has also been increased from $100,000 to $1M. Conclusion: Summarizing all the factors and weighing the pros and cons, the company’s change of direction is beneficial both the organization and the country’s export trade as well. The

inclusion of incentives and other government regulations that support exports outweighs the overhead costs to update the facility and it will lead to employment opportunities.

Assignment - C

1. Special Economic Zones were created to :a) Boost manufacturing , Augment exports & Generate employment
b) Promote production for consumption in the domestic market c) Promote import into the country d) Promote imports from some special zones 2. Under Advance License goods imported cannot be used in the unit of :a) License Holder
b) Jobber c) Supporting manufacturer 3. Which of the following is not a major functions of Export Promotion Council (EPC) a) Provide commercial information b) Organize trade fairs, exhibitions
c) Promote interaction between trade and Government Determine Import duty d) Provide pre shipment finance 4. The WTO Agreement on agriculture provide for:a) Reduction of Domestic Subsidies. b) Reduction in expert subsides c) Binding to provide market access a) All of above
5. According to the Foreign Trade Policy of 2009-2014 Advance Authorizations necessitate exports with a minimum value addition a) 15 %, b) 20% c) 25% d) 10%
6.

Sale by EOU to SEZ units is treated as :a) Physical Export b) Deemed Export c) Import
d) Tradin

7. Which of the following is not a duty exemption / remission scheme a) Advance Authorization
b) DEPB c) EPCG d) Duty Drawback 8. Foreign Trade Policy aims to act as an effective instrument of economic growth by giving thrust to ________. a) Enhance Trade
b) Employment Generation c) Import d) Production

9. Special Economic Zones will located in areas which will be technically treated as ________. Foreign Territory for applicability of domestic legislations a) Financially independent b) DTA
c) Custom Bonded Warehouse 10. What does FOB stand for? a) free on board
b) for billing c) free original barbecue d) For on board 11. Free alongside ship (FAS) means that... a) The goods have to be delivered by sailboat. b) The seller has to pay for the transport until the goods are being unloaded at the port of destination.
c) The goods don't belong to anybody as long as they are alongside the ship. d) The buyer is responsible for the transportation of his goods as soon as they are being loaded aboard. 12. Which terms apply to DDP? a) The seller pays all costs, including customs duty. b) The seller pays all the costs and bears the risk until the goods have been delivered on his side of the border.
c) The buyer has to cover all the costs, including marine insurance and customs duty. d) The seller pays insurance and transport costs up to the port of destination. 13. Match the definition with the INCO terms: "The seller pays the transport costs up to the port of shipment. He bears the risk until the goods have dpassed the ship's rail at the port of shipment." a) EXW b) FOB c) DDP
d) FAS e) CIF 14. Which terms are cheapest for the seller? a) FAS b) EXW
c) CIF d) DDP 15. Which of the statement(s) about EXW is (are) true? a) The buyer pays transport costs from the seller's premises on. b) The seller makes the goods available at his premises.
c) The buyer makes the goods available at his premises. d) The seller pays the transport costs up to the port of shipment. 16. Which of the following is a regulatory Document? a) Packing List b) Shipping Instructions c) Insurance Declaration
d) GR Form

17. In case of payment through open account, payment is made a) Immediately on delivery of goods b) In advance before delivery of goods
c) At a future date d) Through barter system 18. When payment is made through Letter of credit a) Exporter has minimum risk b) Exporter has maximum risk
c) Importer has minimum risk d) Importer has maximum risk 19. In case of payment under D/A goods are delivered a) Before payment is made b) After payment is made
c) On maturity of draft 20. Which of the following document is Issued by the Mate Chief Officer of the ship to acknowledge the loading of cargo on the ship a) Mate’s Receipt
b) Shipping Instruction c) Shipping Order d) Shipping Advice 21. As per the provisions in the Foreign Trade Policy of India Minimum size of the SEZ shall not be less than 1000 hectares expect a) existing EPZs converted into SEZs b) product specific SEZs or c) port/airport based SEZs, on a case to case basis
d) SEZ set up by state government 22. Unless other wise specified in a Letter of Credit which is issued subject to UCPDC 500 and also UCPDC 600, documents must be presented for negotiation within -----days from the date of shipment: a) 10 days b) 7 days c) 15 days
d) reasonable e) 21 days 23. Which of the following is not true regarding an AWB? a) It is prima facie evidence of receipt of cargo. b) It is a document of title to goods.
c) The date of dispatch indicated on the AWB will be deemed to be the date of shipment d) AWB serves as an instruction sheet giving all the instruction needed for moving the goods. e) AWB is made out in three originals

24. Premier Trading House should have minimum export performance of Rs.________. a) 10000 Crs b) 7500 Crs c) 5000 Crs
d) 9000 Crs 25. Under Market Development Assistance Government does not provides-a) Expenses for participation in trade fairs abroad b) Expenses for participation in buyer /sellers meet c) Foreign travel d) Importing Capital Goods
26. Vitamin – A as a drug can canalized through a) MMTC
b) ITPO c) STC d) EPI 27. Which of the following is not a type of letter of credit a) Revocable Letter of Credit b) Standby Letter of Credit c) Moving Letter of Credit d) Back-to-back Letters of Credit
28. Exports and Imports come under the purview of : a) Ministry of Finance b) Ministry of Commerce
c) Ministry of External Affairs d) Ministry of Home Affairs e) Ministry of SSI 29. Export Promotion Capital Goods scheme helps in promoting through a) Import of Capital Goods b) Import of raw material c) Participation in trade fairs d) Export of capital goods
30. Objective of DEPB is to a) Allow duty free import of inputs which are physically incorporated in export product b) Neutralize incidence of customs duty on import content of export product
c) Provide assistance to states for export promotion activities d) Control dumping in the India 31 Tripur in Tamil Nadu is Town of Export Excellence for a) Hosiery Products
b) Sea food c) Handicrafts d) Coir Products 32. Main objective of Served from India Scheme is to promote export of a) Services
b) Tea c) Coffee

d)

Handicrafts

33. Objective of VKGUY is to promote exports of a) Engineering Products b) Minor Forest Produce and their value added variants; c) Chemical Products
d) Marine Products 34. DGFT helps in promoting export from India by a) Implementing the Foreign Trade Policy/Exim Policy b) Collects foreign Trade statistics c) Issues licenses to exporters and monitors their corresponding obligations
d) Facilitating exporters in regard to developments in international trade i.e. WTO agreements, Rules of Origin and SPS requirements, anti-dumping issues, etc 35. Pro forma invoice describes a) the type and quantity of the goods to be shipped b) value of the goods c) total cost of the transaction based on the terms of sale
d) details that are required for negotiation / collection of the shipping documents 36. Consular Invoice is a) verified by Embassy b) Prepared as per the format of the customs authority of the importing country
c) Prepared in consultation with the bank d) Prepared for the Ministry of commerce 37. An EOU may opt out of the scheme with approval of a) Development Commissioner b) Commerce Minister
c) Directorate General of Foreign Trade d) Governor, RBI 38. Market Development Assistance is given to Exporters having annual Export turnover up to Rs.________. a) 5 Crs
b) 15 Crs c) 10 Crs d) 25 Crs 39. A whole range of activities that can be funded under MAI scheme includes: a) Setting up of showroom / warehouse b) Sales promotion campaigns c) Import of capital goods
d) International departmental stores 40. To encourage State Governments to participate in promoting exports financial assistance is administered by Department of Commerce (DoC) to a) Developing infrastructure such as roads connecting production centers with ports, b) Facilitate import from China c) Setting up of Inland Container Depots (ICD) and Freight Stations (CFS), d) Creation of new State level export promotion industrial / zones,