Microsoft Word - M.Com 1st year English TUTOR MARKED ASSIGNMENT Course Code : IBO-04 Course Title : Export Import Procedures & Documentation Assignment Code : IBO-04/TMA/2018-19 Coverage : All Blocks...

Part 1:
1. What are the objectives of Foreign Trade Policy of Government of India? Discuss
the general provisions regarding exports.
    
1. Foreign trade policy ensures sustainable policies and also stable for service as well as merchandise.
2. Reducing trade imbalance and encouraging appraisal to maintain equili
ium.
3. Increase awareness of India’s economy and to promote it worldwide to gain competition among the competitors in foreign trade and also to increase exports.
4. Combine different areas together to promote and diversify “digital India” to create Export promotion mission for India.
5. Establish mechanism to promote India’s product and initiate “Make in India” by expanding markets to different regions.
General provision regarding exports:
2. Distinguish between pre-shipment and post-shipment finance. Explain various post-shipment finance available to Indian Exporters.
Pre-shipment Finance: It is the finance needed by the exporter before delivering the products to the buyer. After confirming the order with buyer, exporters get credit for all the raw material, wages for the workers. In short it is credit the exporter get for delivering the product until the buyer is satisfied.
Post-shipment Finance: It is defined as the loan provided to the exporters after the shipment of the products Is made to the buyer. Risk is very high in exporting products to different place, more than the normal buying and selling, so insurance is provided to the exporters by the government.
There are namely six types of post-shipment finance available to exporters:
1. Exporting bills of purchased or discounted products.
2. Negotiation on Exporting bills.
3. Advance averse on bills on basis of collection.
4. Advance averse export on basis of consignment.
5. Advance averse export on undrawn balance.
6. Advance averse on claiming duty drawback.
· Export bills of purchased are used in sale contracts and also in international trade which are indisputable.
· This is basically when the bank guarantees to pay the amount for the LC. Reducing the risk banks agrees to pay on behalf of LC.
· When there is a discrepancy in LC banks can give advance against the exporter bills. They allow this on basic interest rates depending on the foreign cu
ency.
· This happened when the product is delivered to the Consignee on a consignment basis. Banks may or may not give advance in the case based on the risk by the exporter. Also banks asks documents from the overseas banks for the sale.
· Banks can also provide advance against undrawn balance which are based on the weight, quality etc. for payment after the adjustment of the goods.
· This is a type of discount given by the banks to the exporters based on the cost of production. If the cost is higher that international markets, this will help the exporter to grab hold of international markets with their products.
3) Distinguish between :
(i) Liner and Tramp Shipping Services
(ii) Total loss and particular loss
1) Liner and Tramp shipping services: Liner services are services based on cargo ships and are used to ca
y high loads or weights across large distances. They have fixed routes and are enrooted on a daily basis. Companies with huge amount of good transported from one place to another at lower cost uses this method in order to profit.
Tramp service are small boats or ships which doesn’t have any fixed timing or schedules for transportation. They are based on demand and need of the companies. As they have no fixed route and timings, they are free to business with multiple partners from one place to another which might be in some other location.
2) Total Loss: It is defined as the loss, in insurance claims, when the insured amount is less than the value of the total damage including all the costs to be repaired.
Particular loss: These losses are specific to the owners and are not entertained by any other parties. These losses are in relation with the particular interest and are only suffered by one or the owner of the cargo’s or ships.
4. Comment on the following statements.
(i) Documentation formalities are not necessary to enable the importer to get the contracted goods and the exporter to get sale value as well as to secure export incentives.
Documentation formalities are very important to ca
y out the business and for the importer to receive the contracted goods. These documents hold all the details of the goods that are imported. Similarly, these documents also have all the important financial transactions between the two parties and helps the exporter to get the sales value.
(ii) There are no difference between documents against payment and documents
against acceptance.
Document against payment is an a
angement where the bank hands over the shipping and title documents after the importer fully pays the bill whereas document against acceptance is given after the importer accepts the accompanying bill of exchange by signing the draft.
(iii) The insurance contract is not in the nature of indemnity.
Indemnity can be similar to the compensation. Its purpose is to compensate the loses that might occur during the process of transportation or storage. It helps to compensate the loses and the organization neither gains or losses due to the mishap. Thus the insurance contract is same as that of the nature of indemnity.
(iv) Self-sealing and certification facility by exporters are not allowed for claiming
ebate
efund of Central Excise Duty.
Explorers can’t seal their own goods and certification facilities for claiming rebate once they have filled up the ARE-1 form and list the details of all the goods. The superintendent of Central Excise needs to examine all the information written in the ARE-1 form and check the payment.
5. Write notes on the following?
(i) EDI and Bar Coding
Electronic data interchange (EDI) is the concept of electronically communicating information such as purchase orders or invoices.
Similarly bar coding is also an optical or machine readable form of data representation. The object ca
ying the bar code contains all the necessary information about the object within the width and spacing of each bars.
(ii) Export Declaration Forms
Export declaration form can be defined as the customs form that is filled...