PART B (Case Study) = 2 PART C (Multiple Choice) = 78 Get solution from aidlo.com PART A Descriptive Type Question Question 1a: Distinguish between Export order, Agreement & Contract. Question 1b: What are the important elements of an Export Order? Explain in detail the role of different elements. Question 2: What are INCO terms? Explain all INCO terms indicating the responsibility of the buyer and seller at various stages of the export cycle. Question 3: What are various modes of payment in trade? Explain how is L/C considered to be superior than the other methods? Explain in detail the different types of L/Cs & the categories of exporters. Who demand them? Question 4: What are the various types of export finances? What is the criteria for their release? What is the role of various agencies involved in financing or protecting the export finances? Question 5: Why do we require pre-shipment inspection of goods? Explain in detail the different types of pre-shipment inspections. Question 6: What do you understand by Risk Management in Exports? What are the various causes for the Export Risk? How can these Risks be minimized? Question 7: Explain the Role of Documentation in the Export Trade. How is aligned documentation system helpful in the promotion of Export Trade? Explain the Role of Various Regulation Documents. Question 8: Do you agree that various schemes introduced by GOI are adequate to keep the Indian Exporters well placed in the International Market? Explain the various schemes in detail. Question 9: How have the draconian provisions on FERA been modified in the FEMA? Discuss in detail the provisions pertaining to: a. Change of Tenor of Bill. b. Delayed Remittance c. Payment of Export Claims d. Retention of Foreign Currency Amount Question 10: Examine the steps involved in processing of an export order. Question 11(a): Briefly explain the difference between i. D/P and D/A ii. DDU and DDP iii. Principal and Regulatory Documents iv. Custom Invoice and Consular Invoice v. Revocable and Irrevocable letter of credit Question 11(b): Write a short note i. Bill of lading ii. FEMA iii. EPCG scheme iv. Types of Shipping Bill v. Role of Clearing and Forwarding Agent Question 12: Discuss various methods that are used for making payment in International Trade Question 13: Examine the steps involved in Custom Clearance of Export Cargo. Question 14: What are the features of Export Processing Zones / Special Economic Zones? How are they helpful in promoting export from India? Question 15: What is EPCG scheme? What are the main provisions in the scheme? How has the scheme helped in promoting export from our country? Question 16: Describe various principal and auxiliary documents used in International trade.
PART B Case Study 1 1. Prepare one set of Documents as required by L/C issuing Bank.
Case Study 2 You are an exporter of Gold and Diamond Jewellery in India. Approximately 85% of your product is sold in the domestic market and 15% is being exported. You are not availing any kind of incentive for your exports. Now you want to upgrade your production facility and also wish to avail the incentives given to the exporter under FTP. Question: Prepare a feasibility report to make your products more competitive in the export market by availing the provisions in the Foreign Trade Policy
PART C Multiple Choice Question Set 1 1. IEC is issued by: (a) Reserve Bank of India (b) Ministry of Commerce (c) Ministry of Finance (d) Any of the above 2. Cash Exports Mean: (a) payment in advance (b) payment at sight (c) Payment in 90 days (d) None of the above. 3. Uniform Customs & Practice is drafted by: (a) Chamber of Commerce (b) Reserve Bank of India (c) Commercial Banks (d) None of the above 4. SDF is used as: (a) Principal Document (b) Regulatory Document (c) Auxiliary Document (d) None of the above 5. Amount eligible for EEFC A/c is: (a) 50% (b) 80% (c) 100% (d) None of the above 6. Packing Credit Finances is extended for: (a) Procurement of Raw Material (b) Packing the good. (c) To meet the pre-shipment costs. (d) All three above purposes. 7. Master Document 1 is concerned with: (a) Principal Commercial Documents (b) Auxiliary Commercial Documents (c) Regulatory Documents (d) None of the above. 8. In CIF Contract, Claim if would be paid to: (a) The Seller (b) The Buyer (c) The Seller or Buyer (d) None of the above. 9. The time for presentation of documents after shipment is: (a) 15 days (b) 25 days (c) 21 days (d) Any time after shipment 10. Running Account facility is meant for: (a) Packing credit (b) Bills Facility (c) Cash Credit (d) All of the above 11. To secure the Bank for packing credit finance ECGC provides: (a) WTPSG (b) WTPCG (c) Comprehensive Risk Policy (d) All of the above 12. ISO is based on the principle of: (a) CWI (b) IPQC (c) TQM (d) SCS 13. In Small Exporters Policy ECGC pays loss on account of Commercial Risk up to: (a) 90% (b) 100% (c) 95% (d) None of the above 14. Total Loss is Marine Insurance means: (a) ATL (b) CTL (c) Both ATL & CTL (d) None of the above 15. How can exporter protect his fluctuation Risk? (a) By Hedging (b) From Insurance Co. (c) From PLI (d) All of the above 16. Airway Bill is: (a) Quasi Negotiable Instrument (b) Non-Negotiable Instrument (c) Negotiable Instrument (d) None of the above 17. In Letter of Credit the Bill of Exchange can be drawn on: (a) The Applicant (b) The Beneficiary (c) The Issuer (d) The Negotiating Bank 18. AR-4 is related to: (a) Customs Declaration (b) Shipping Line Certificate (c) Excise Declaration (d) None of the above 19. The Export Sight Bill must be realized in (a) 100 days (b) 25 days (c) 21 days (d) 7 days 20. In Negotiation Credit the Negotiating Bank negotiates the documents: (a) Without Recourse (b) With Recourse (c) With or Without Recourse (d) All of the above 21. Caused Bill of Lading mean: (a) Late Shipment (b) Shipment to a different port (c) Bad state of Packing (d) All of the above 22. In DBK the Customs is obligated to pay the claim of Exporter in: (a) 30 days (b) 7 days (c) 60 days (d) 75 days 23. Maximum MDA facility is means for: (a) Total expenditure of Trade Fair (b) Rs. 90000/- for Trade Fair participation (c) Rs. 100000/- for Trade Fair participation (d) Rs. 50000/- for Trade Fair participation 24. Present Exim Policy is: (a) AM 2000 - 2002 (b) AM 2001 - 2002 (c) AM 1997 - 2002 (d) None of the above 25. Double weightage factor is for: (a) Exports of products of SSI Sector. (b) Exports from North Easter Sector. (c) Exports from J & K. (d) All the above 26. Star Trading House can be recognized on Exporting: (a) Rs. 560 crore exports last year. (b) Rs. 312 crore Exports in 3 years. (c) Both (a) and (b) above. (d) Average export of Rs. 1125 crore in 3 years. 27. The validity period for Star Exporters recognition is: (a) 5 years. (b) 3 years (c) AS decided by DGFT. (d) All the above 28. If an Import Licence is issued for 24 months on 24.12.2000 the last date of shipment would be: (a) 24.12.2002 (b) 23.12.2002 (c) 31.12.2002 (d) 30.11.2002 29. In EPCG scheme the Export Obligations can be achieved in: (a) 3 years (b) 5 years (c) 8 years (d) 10 years 30. The second hand capital goods should not be more than: (a) 10 years old (b) 5 years old (c) 8 years old (d) None of the above 31. Advance Licence is meant for: (a) Raw Materials & Components (b) Capital Goods (c) Capital Goods & Raw Material (d) None of the above 32. The following duties are neutralized by DEPB: (a) Excise Duty (b) Custom Duty (c) Custom & Excise Duties (d) None of the above 33. The Export declaration forms used in Software Exports are: (a) SOFTEX Form (b) SDF Form (c) G R Form (d) Any one of them. 34. In Foreign Exchange Cover, if the Currency is at premium. The premium for 3 months is 10/15 Rs. If the exchange rate in a particular date is 1 US$= Rs. 47.50/- so what would be the selling rate after 3 months. (a) Rs. 47.60/- (b) Rs. 47.75/- (c) Rs. 47.65/- (d) Rs. 47.70/- 35. In Indian exchange management system the profits are earned by Banks by adopting the following system: (a) Buy high sell low (b) Buy low sell high (c) Buy flat sell low. (d) Buy low sell par. 36. Shall the Bank accept an Insurance Policy: (a) Only if issued before the shipment date (b) Issued after the shipment date with risk starting before the shipment (c) Both the above 37. Full Set Term with regards to shipment mean: (a) Full set of all documents called for (b) Full set of Negotiable documents (c) All original by lading (d) All of the above 38. In ECGC small exports policy the shipment declaration have to be made: (a) Every month (b) Once in two months (c) On Quarterly basis (d) Twice during the currency policy
Multiple Choice Question Set 2 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. Documents required for supplies made against Advance License are :- (a) Xerox copy of Purchase order /Contract (b) Letter of Credit (c) Shipping Advice (d) Bill of Lading 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) Trading 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 ________. (a) Foreign Territory for applicability of domestic legislations (b) Financially independent (c) DTA (d) 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 passed 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. Which of the following benefits are not given to Star Export Houses are (a) Custom clearances on Self Declaration basis (b) Fixation of Input-Output norms on priority within 60 days (c) 100% retention of foreign exchange in EEFC account (d) Import of prohibited Items 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, Get solution from aidlo.com
Indian Institute of Materials Management Post Graduate Diploma in Materials Management Graduate Diploma in Materials Management Paper No. 7 International Trade