Masters of Business Administration

PROGRAM Certificate in Export Import Management

SEMESTER-4
SUBJECT CODE & NAME
CERTIFICATE IN EXPORT IMPORT MANAGEMENT IB
SPECIALIZATION

Q1.

What

is

containerization?

Describe

the

advantages

and

disadvantages of containerization.
Answer:
Containerization:
The container as the English meaning implies refers to its storage and
carriage capacity, i.e. it isequipment used to store and carry goods. Hence in
shipping, this is a service of transportation ofseaborne goods, container in its
early stages used to refer to any type of box used to carry cargo.Presently
also a container is known as "box" or "van" in many countries, particularly in
the U.S.A.The International Organization for Standardization (ISO) defined a
freight container as : "Anarticle of transport equipment, (a) of a permanent
character and accordingly strong enough tobe suitable for repeated use; (b)
specially designed to facilitate the carriage of goods by one ormore modes of
transport, without intermediate reloading; (c) fitted with devices permitting
itsready handling, particularly its transfer from one mode of transport to
another; (d) so designedas to be easy to fill and empty; (e) having an
internal volume of 1 cu.m (35.3 cu.ft.) or more".Further, the general purpose
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freight container is defined as follows:"A freight container of rectangular

shape, weatherproof, for transporting and storing a numberof unit loads,
packages or bulk material; that confines and protects the contents from loss
ordamage; that can be separated from the means of transport, handled as a
unit load andtranshipped without rehandling the contents.

Advantages and disadvantages of containerization:

The main advantages of steel containers are :
i) They are the cheapest.
ii) They can be more easily repaired compared to aluminum or GRP
containers in view of availability of skilled laborers and equipments to handle
steel. In the USA the aluminum containers can be more easily repaired
compared to steel containers.
iii) They can resist damage. While a damage can create a hole in an
aluminum container, it can cause only a dent in a steel container which may
not warrant an immediate repair.
The disadvantages of steel containers are:
i) They can have an economic life of about 10 years, while aluminum or GRP
containers may last longer.
ii) They will have more tare weight compared to other types of container,
thus will be able to carry less payload of cargo.
iii) They suffer by being more prone to corrosion. But this can be overcome
by us of alloy steel instead of ordinary steel.
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Q2.

List out the various export promotion schemes currently

available to exporters. Explain MDA in detail.

a) List of various export promotion schemes
b) Description of MDA
Answer:

List of various export promotion schemes:

the export promotionschemes. They are given below in a nutshell :
* Scheme for Replenishment Licenses.
* Procedure for export of cut and polished diamonds for certification and
grading.
* Schemes for import of essential inputs for exporters of gold / silver /
platinum jewellery.
a) direct;
b) through nominated agencies
* Details of items of export under the above scheme for entitlement of
facilities.
* Value Addition
* Wastage Norms.
* Export against supply by foreign buyer.
* Procedure for export of jewellery by nominated agencies for holding /
participating in exhibitions held abroad.
* Export against supply by nominated agencies.
* Export against Advance License.
* Gem Replenishment Licenses.
* Personal carriage of import / export parcels.
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* Diamond Import License.

* Private / Public bonded warehouses.
* Diamond and Jewellery Dollar Accounts.
MARKETING DEVELOPMENT ASSISTANCE:
The MDA Division of the Department of Commerce administers the
utilization

of

assistance.

Product

specific

Export

Promotion

Councils,

Commodity Boards and other Govt. organization are eligible for MDA
assistance for development and promotional activities to promote exports of
Indian products. All exporters are eligible for Marketing Development
Assistance in exploring markets and stimulating and diversifying exports of
Indian products and commodities through activities like sales cum study
teams, participation in fairs, exhibitions and buyer cum seller meets,
advertisement in foreign media and bringing out publications, publicity
material, product catalogues etc. for use abroad. The various eligible export
promotion activities and terms and conditions applicable for availing
Marketing Development Assistance against them are as under: Direct
assistance to individual exporters for Export promotion- marketing activities
abroad:
APEDA has been encouraging exporters to set up infrastructure facilities like
pre-cooling, cold storage, sorting and grading facilities, etc. To complete the
supply chain, APEDA has provided common infrastructure facilities at major
airports. Under Agri Export Zones, State Govts. are providing infrastructure
facilities. APEDA has created storage, pack house and cold storage
infrastructure in an important importing country, Rotterdam. As on Nov 07, it
has plans to create such facilities in other two important importing countries,
Dubai and Tokyo. APEDA, in collaboration with the National Horticulture
MIssion, will take up the creation of storage, pack house and cold storage
infrastructure in key banana cultivation clusters with export potential. Similar

facilities will be created in important importing countries as well, as has been

created by APEDA for flowers in Rotterdam.

Q3.

What are the advantages and disadvantages of air freight as

compared to sea freight? Describe Air Way Bill and its use.
Answer:
ADVANTAGES AND DISADVANTAGES OF AIR FREIGHT:
ADVANTAGES:
a) One time palletisation of the cargo at airport of origin so that cargo is not
touched at the transshipment point.
b) There will be no damage/breakage if palletisation is done.
c) 24 to 32 hours delivery at destination airport where consignee/broker can
clear the shipments. Also speedy delivery for perishable cargo.
DISADVANTAGES:
a) Airfreight is more costly than sea freight.

b) You can find problems in booking space with Airlines.

c) You can also face problems of embargo i.e. your cargo may not be uplifted
from the origin airport due to over loads of cargo of cargo at transshipment
point.

Air waybill: An inland bill of lading is a document that establishes an

agreement between a shipper and atransportation company for the
transportation of goods. It is used to lay out the terms fortransporting items
overland to the exporters international transportation company.An ocean bill
of lading is a document that provides terms between an exporter and
international carrierfor the shipment of goods to a foreign location
overseas.An air waybill is a bill of lading that establishes terms of flights for
the transportation of goods bothdomestically and internationally. This
document also serves as a receipt for the shipper, proving thecarriers
acceptance of the shippers goods and agreement to carry those goods to a
specific airport.Essentially, an air waybill is a type of through bill of lading.
This is because air waybills may cover bothinternational and domestic
transportation of goods. By contrast, ocean shipments require bothinland
and ocean bills of lading. Inland bills of lading are necessary for the
domestictransportation of goods and ocean bills of lading are necessary for
the international carriageofgoods. Therefore, through bills of lading may not
be used for ocean shipments.Inland and ocean bills of lading may be
negotiable or non-negotiable. If the bill of lading is nonnegotiable, the
transportation carrier is required to provide delivery only to the consignee
named in the document. If the bill of lading is negotiable, the person with
ownership of the bill of lading has the right of ownership of the goods and
the right to re-route the shipment.

Q4.

Explain the requirement of cushioning materials in export

packaging. Describe the main types of cushioning materials used

and their application.

Answer:

CUSHIONING MATERIALS AND THEIR APPLICANTS INTRODUCTION:

Cushioning is that part of packaging which protects the article from damage
due to shock and vibrations. During transportation a package may be
subjected to vibration over a wide range of frequencies and undergo jolts of
varying forces and duration. A cushioning material selected for the purpose
may also have to minimise the movements of the item, prevent abrasion of
surfaces, make barriers, cover sharp projection, absorb liquids that are
spilled from broken unit containers and sometimes act as heat insulators.
However, protection of goods from shock is the most important function of a
cushion. Shock protection requirements are the first consideration in
selecting cushioning materials. Sufficient cushioning materials should be
used to dissipate the shock which may be transmitted through the blocking
of the product. Protection against impact or vibration d a m a g e s requires
that the fragile article be surrounded by a predetermined thickness of
cushioning material, actually floating the article within the container. This is
sometimes referred to as float pack". Apart from protection to delicate and
highly finished surface against abrasion, surface of the product which may be
damaged by wooden blocking, strapping, or container surfaces are protected
by cushioning. Surface finish protection is usually accomplished with thinner
applications of cushioning materials than are generally required for shock
protection, as the purpose is merely to have the cushioning act as a buffer.
Paper backed materiels are often used for surface protection.
Main types of cushioning materials used and their application:
Cushioning materials are available mainly as granular materials, bulk and
strips, matted fibre-textures, cellular structures and molded or formed
structures. They are mainly made of cellulose materials or foamed plastics.
Cushioning materials can broadly be classified into three basic categories as
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(1) Space fillers

(2) Resilient cushioning materials and
(3) Non resilient and rigid cushioningmaterials,

Space fillers: are mainly used to fill the voids in the packages as dunnage
to prevent reorientation of the items and sometimes to absorb liquid
products spilled from the broken unit containers.
Resilient cushioning materials: are used to protect packed items from
damage due to repeated shocks. Materials falling in this group have
compressibility and must be able to return to their original condition after
each shock. They should be able to absorb shock energy without exerting too
much force on the item
Non resilient rigid cushioning materials: are used for protecting
packaged items from a single severe shock as is experienced in an air
dropping. These materials absorb shock by the collapse of their structure and
cannot return to their original shape after the shock. The force displacement
curve of these materials falls in the category of anomalous type.

Q5. You are a merchant exporter. A prospective overseas client has

shown interest in your products. Write a letter making a firm offer
mentioning all relevant facts regarding product features, payment
terms, transport details, insurance, delivery schedules, packaging
etc.,? Assume all relevant details about the product and the client.

Answer:
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Dear Sir,
Sub: Offering our products to export
We are a fast growing Crab exporter from INDIA in joint collaboration with
Ocean Exports. We have experienced more than 20 years . We are interested
to export Live Mud crabs / Crab meat collecting from the fishing plant of salty
water, the strength and taste of which is un comparable. Interested buyers
are requested to contact with us.
Sinchi Exports is one of the first few companies in India which pioneered into
the exports of live seafood. Keeping abreast to the recent trends in the
eating habits of seafood consumers, we started exporting Sinchi Brand Live
Mud Crab to Singapore, China, Dubai, USA, UK, CANADA & Middle East
Our Storing Warehouse unit is just 5 Km away from Kolkata Airport so there is
no delay of your shipment.
Our Export is open 24hrs*365 Days
Product: Live Mud Crab.
Size: Male Crabs
200 / 300 gm, 300 / 400 gm
400 / 500 gm, 500 / 550 gm
550 / 600 gm, 600 / gm up
Size: Female Crabs
180 / 200 gm 200 / 250 gm
250 / 280 gm without Egg and / With 70% Egg
Packing: Export Standard Packing in Thermo Box.
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Weight: One Box Contains 20kgs Crabs Minimum Shipment Order 500 Kgs to
1000 Kgs
Mortality: 5% Mortality Accept.
Payment: Net banking and debit card method
In case of import orders from your side we guarantee the following items:
A. Excellent specification.
B. Competitive prices.
C. Perfect control for packing and weight.
D. Air Cargos schedules will be in time exactly without any delay with all
required export documents to facilitate all matters in your terminal point.
Importers are welcome to visit our processing unit.
Thanks & warmregards,
Sutanu Ghosh
Export Manager
| Sinchi Exports Pvt.Ltd. |Bareja Exports Pvt.Ltd. | Serema Exports Pvt.Ltd.
Email : crabs@live.in / sutanu.emarketing@gmail.com
Address : 10 / 1, Princep Street
Kolkata - 700 072, West Bengal, India

Q6.

List out the Principal Export Documents along with a brief

description of each of them.

Answer:

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Description of Principal Export Documents:

Regulatory documents prescribed by the Government departments bodies
under various rules and regulations and relevant laws governing Export Trade
for processing the goods for export and eventual shipment of the same.
These include Export Infomation, Export Trade Control, Customs Formalities,
FEMA Regulations etc. As regards Commercial Documents, there are 16
documents in use, out of which 8 are sent to the Importers (Foreign Buyers)
abroad and these are known as PrincipalExport Documents. These are :
i) Commercial Invoice (plus invoice prescribed by the importing country)
ii) Packing List
iii) Bill of Lading / Combined Transport Document
iv) Certificate of Inspection / Quality Control
v) Certificate of Insurance / Policy (in case of C.I.F contracts)
vi) Certificate of Origin
vii) Bill of Exchange
viii) Shipment Advice
The remaining 8 documents are called "Auxiliary Documents" which have
only a supportive role as these are required for preparation and procurement
of the Principal Export Documents. These are :
i) Proforma Invoice
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ii) Shipping instructions

iii) Intimation for Inspection
iv) Insurance Declaration
v) Shipping Order
vi) Mates Receipt
vii) Application for Certificate of Origin
viii) Letter of Bank of Collection / Negotiation of Documents
Out of the above 16 Commercial Documents, 14 (all except "Shipping Order"
and "Bill of Exchange") have been standardised and aligned to one another,
through Master Document-1. The two remaining could not be aligned mainly
due to different date elements and little common data among others.

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