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    Ibo 4 em

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    IBO-4-EM

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    SOLVED ASSIGNMENT Assignment Solution Guide (2021-2022) ‘TUTOR MARKED ASSIGNME! COURSE CODE : 1BO-04 COURSE TITLE : Export Import Procedure and Documentation ASSIGNMENT CONE : TRO-04/TMA/2021-2022 COVERAGE t ALL BLOCKS Maximum Marks: 100 Attempt all the questions: 1, What are the steps involved in the processing of an Export order? Explain them (20) briefly, 2, Distinguish between: (1+) (a) Insurance policy and Insurance Certificate. (b) Liner and Tramp Shipping Services, 3. (a) Describe the process of preparing goods for exports and their transit to the port (10+10) of shipment along with documentation formalities. (b) Explain the customs clearance via sea along with documentation formalities. 4, Comment on the following statements: (4x5) (a) Export houses do not get any strategic advantages through EDL (b) Documents against acceptance do not have a usage period (©) Credit is a major weapon of intemational competition but it involves tisk (a) Export incentives do not promote export. 5, Write notes on the following: (4x5) (a) General Provisions for impor. (b) Foreign Currency Account. (©) Financing under Deferred Payment Arrangement. (a) 180 9000. Advertisement To get IGNOU Bases Chapterwise Reference Books Including Many Solved Sample Question Papers for Various Courses Like BA. B.Com B.A.Hons. M.A. M.Com M.B.A. B.C.A. M.C.A. M.RD. MS.W. M.T.M. B.Sc. BTS BIMC CTE DNHE B.Lis etc. Vi www.neerajbooks.co Study x SOLVED ASSIGNMENT Badshah Assignment Solution Guide Seton ay me (2021-2022) Senses [BO d Export-Import Procedures and Documentation Disctaimer/Special Note: These are just the sample of the Answers/Solutions to some of the Questions given in the Assignments. These Sample Answers/Solutions are prepared by Private Teacher/Tutors/ Authors forthe help and guidance of the student t dea of how he/she can answer the, Questions given the Assignments. We do not claim 100% accuracy of t knowledge and capability of Private Teaclir/Tutor. Sample answers may As these solutions tor so the chances of error or mistake cannot be denied. Any 0: t en taken while preparing these Sample Answers Solutions. Please consult your own Teacher/Tutor before you prepare a Particular Answer and lor up-to-date and exact information, data and solution. Student should must read and refer the offical study material provided by the university. mae nt psig anthem br ; : wrt a s capacity of “oi amount of Fane the exp et NATURE AND FORMAT OF EXPORT ORDER ‘Nature and format of an export orgagis inthe form of sales contracts oer" ich coniain all details rogarding the supply of goods; its quantity, quality, price per unit Tt Basie re Tier andes ‘supply goods on agreed terms. The export order is usually in form of @ retreat Od MH ierStudy and E-Learning (&) Purchase order accepted and signed by the exporter. (©) Latter of Credit opened by the importer in fgvour of the export All these ANAL 3 parties. neva uey badshah-conr () Name sae feller and buyer Gi) Description of the product and its quality. (ii) The quality of the goods to be supplied/purchased. Gv) The rate per unit and the total amount. (W) The time of delivery with date (v4) The mode of transport viz, air/shipitoad! com (wii) Port of discharge/destination. (vili) Terms regarding freight/Insurance expenses, (ix) Documentation required (4) Name of the bankers of the Importer. (a1) Payment details (on sight/eredivlater date. Advertisement To get IGNOU Based Chapterwise Reference Books Including Many Solved Sample Question Papers for Various Courses Like B.A. B.Com B.A.Hons. M.A. M.Com M.B.A. B.CA. M.C.A. M.R.D. M.S.W. M.T.M. B.Sc. BTS BJMC CTE DNHE B.Lis etc. Visi www.neerajbooks.com sd Port of Loading, SOLVED ASSIGNMENT Assignment Solution Guide www:atudybadshah.com (2021-2022) EXAMINATION AND CONFIRMATION OF EXPORT ORDER On receipt of an export order form an importer and the exporter should acknowledge its receipt to the importer through fax, phone telex of e-mail ‘The exporters must critically examine the export order to ensure that it has all the basic information as given below: (@) Product description including specifications style colour, packing conditions ete, (b) Marking and Labelling requirements as desired. (©) Forms of payment including currency, nature of Letter of Credit (Revocable, Irevocable, confirmed, uncontirmed, restricted, unrestricted) credit period, if any. (@) Terms of shipment including choice of carrier mode of carriage, place of delivery, date of shipment or delivery port , Transhipment ete (©) Insp inl ing agency. @ Inst inc value. G@) Documents in + of invoices, certificate of origin, certificate of inspe i exc cy, transport documents and-document of title. (0) Last ate of nepsiaton of documents ith the bank ‘The export gen he recs of expr ta the gg peo being ak ag the export extra cost and ifthe Pesan cl sega et back to bie postion Reimperer end lat no ge ea a porter oer isa por hem ion pope Peake ei Oars ay oer eneipente sce a t ee Prrnerodes ot epoca neta apie phy eet fens QiDamee Private Cimted (a) Insurance Policy and Insurance Cer We Ans Thee BR rel sot ef rotsGn Heres ound i er eds Bealoeie erg rape: marie. ‘These are insurance policy, insurance certificate and declaration under arropen cover. Declaration under an opef cover is not ke re pre fe eS rem lt insrncepaey ARCA heya EREnse Tac FFB ve participants. Insurance Policy: Insurance policy is a legally binding written document, which is issued by insurance company ot underwriter (o policy holder or insured/assured. Just like bills of lading (Bill of lading states terms and condition of the carriage as a transport document), insurance policies define the terms and conditions of the insurance contract and serves as a legal evidence of the insurance agreement, International marine cargo insurance policies are generally issued subject to ICC Cargo clauses such as Institute Cargo Clauses (A), Institute Cargo Clauses (B) and Institute Cargo Clauses (C), An insurance cargo policy should specify the terms on which the indemnity cover has been provided by giving an express reference to one of above ‘mentioned ICC cargo clauses. Furthermore, an insurance cargo policy may mention additional risks covered such as war risks and strike risks. In some occasions, insurance cargo policies indicate thatthe cover is subject to a franchise or excess (deductible). Other information that could be mentioned on cargo insurance policies are: * Amount of insurance premium * Shipment details such as port of loading, port of discharge, vessel name and voyage number, description of goods ete + Currency of the insurance cover Advertisement To get IGNOU Basea Chapterwise Reference Books Including Many Solved Sample Question Papers for Various Courses Like BA. B.Com B.A.Hons. M.A. M.Com M.B.A. B.C.A. M.C.A. M.RD. MS.W. M.T.M. B.Sc. BTS BIMC CTE DNHE BLLis etc. Visit : www.neerajbooks.com SOLVED ASSIGNMEN Assignment Solution Guide (2021-2022) + Insurance cover amount ‘+ Insurance company’s agent at the port of destination + Procedures for the claim and required documents Insurance policies issued by the insurance companies for specific transactions. An insurance company gets the details of the shipment from the policy holder and prepares his insurance policy offer. the insurance holder agrees on the terms and conditions as-well-as insurance premium, then the insurance company or the underwriter issues the insurance policy. An insurance policy generally issued when the goods are loading and expires on completion of unloading from the carrying vessel atthe port of destination, Insurance Certificate: In some cases, exporters or importers do not prefer to make insurance for each shipment separately, bout they sign an insurance cover for a certain period of time such as 1 year. During the insurance period, as illustrated | year on the above exar fers al shipments willbe covered with a cargo insurance. Periodic insurance contracts are also known as open cover. nsurance, needs an insurance document fora spevtic shipment, then the insuran surance certificates are not issued as a stand alone insurance document for op Both insurance policy and insurance certificate should be iss = Both documents should state identical information such as: a sure ‘dion sks covered Amount premium Shipme ae r oa co of goods ete 2 Cunene { sara i Insurance company’s agent at the port of destination Procedures for the claim and required documents (0) Liner and ‘Tramp Shipping Seb. |' VATE Limited Ans. The Liner and Tramp Shipping are distinguished as under: ' so SMSO CUES ELE GE len ng “ee nr aninC Sad y ards hatree one" 4, Liner ships have a varied and sophisticated equipments for quick loading and unloading. Tramp Services have a simple material handling equipment. Liner ships ensure speedier carriage . Tramp Ships have less speed. Liner services have pre-announced schedule between two ports. Tramp services do not have a pre-announced schedule, 7. The Liner shipping services has fixed carriage and stable freight rates. The Tramp shipping services do not have fixed freight and its freight tariffs may vary at times. 8. The terms and conditions of Liner service are not negotiable. The terms and conditions of Tramp services are nogotiable, ‘9. Liner services operate between fixed ports and loads and discharge loads on way. Tramp services do not operate between fixed ports. 10. The Liner services are little more costly, The Tramp services are comparatively cheaper, Pldoortisoment To get IGNOU Based Chapterwise Reference Books Including Many Solved Sample Question Papers for Various Courses Like B.A. B.Com B.A.Hons. M.A. M.Com M.B.A. B.C.A. M.C.A. MRD. MSW. M.TM. BSc. BTS BIMC CTE DNHE B.lis etc. Visit : www.neerajbooks.com (Saudy ar SOLVED ASSIGNMENT Badshah Assignment Solution Guide tom studybadahah.com (2021-2022) Q. 3. (a) Describe the process of preparing goods for exports and their transit fo the port of shipment alongwith documentation formalities. ‘Ans. When an exporter receives an export order he has to make a lot of efforts to organise the activity ifhe isa manufacturer exporter he sends a delivery note alongwith the copy of export order which give the quality, quantity, specifications, marking, labelling, inspection details to the production department simultaneously ties up the raw materials practising materials. A ‘merchant exporter starts procurring the goods through reliable vendors as per the given specifications, ‘Then the goods are ready for packing a pre-shipment inspection is carried out by the Export Inspection Agency on receipt of notice along with technical specification, which in tum issues a certificate of Inspection in triplicate, and then the goods needs to be cleared by the Central Excise Authorities, who on receiving the application for excise inspection and issue certificate oon form ARA/AI pies, then the goods are packed anid sealed before removal of goods, after this the goods are handed over to the ca er a or Railways, ts along with other documents are sent to the clearing and for sent for onward shipment, 3 ‘Afler the receipt of documents and the ca lear “orwarding Agent takes the delivery of goods from the carrier and a storage ith ! tes proceedings tpobfain customs-clearance and permission for exports, The documents on which customs give clearance for expottis the Shipping Bill but before the permission is granted the following doe do be submitted along withthe Shipping ee 1” Shp Fut Copis Contr ondence les cr ri r tate Com ach Shi a GR form (original and duplicate) Inspection Certificate (original . . MAsomatinde rivate Limited i Pacing Li The Cision Bomees pany OCD mreznGhbupeh yh cpr rel Ee ob ce giervin pepideraions ‘That the value and quantity declared in the Shipping Bill is the sanfe as in the export order/ Letter of That the formalities regarding exchange control pre-shipment qué -conjrol inspectiog etc., ave been duly completed, After examination con ARTA Hd GO GF Kn GAGA HEE eb GORE oo Shipping bill. He gives directions to the Dock Appraiser abt the extent of physical examination ofthat cargo isto be conducted at the docks, When Dock Appraiser is presented with the documents vz original Shippigg Bill and a copy of Commercial Invoice, these documents are presented to shed Superintendent of the port. The CFA obtains a carting order and brings the 00d into the shed for physial examination by the Dock Appraiser long with the following documents: (2) Duplicate triplicate and export promotion copies ofthe Shipping Bil (6) Commercial Invoice (©) Packing List (@) ARGARS form in original and duplicate plus the invoice () Inspection Certiticate-original GR form (Duplicate) ‘The Dock Appraiser after conducting physical examination, records examination report and makes “Let Export” endrsement on the duplicate copy ofthe Shipping Bill. After this these documents are presented to the Preventive officer of the Customs Pldvertisement: To get IGNOU Based Chapterwise Reference Books Including Many Solved Sample Question Papers for Various Courses Like BA. B.Com B.A.Hons. M.A. M.Com M.B.A. B.C.A. M.C.A. M.RD. MS.W. M.T.M. B.Sc. BTS BIMC CTE DNHE BLis etc. Visit : www.neerajbooks.com SOLVED ASSIGNMEN Assignment Solution Guide (2021-2022) ‘who supervises the loading of Cargo on board the vessel on being satisfied the Preventive officer makes an an endorsement ‘Let, Ship’ on duplicate copy of the Shipping Bill. This constitutes an authorication by the customs to the shipping company to accept the Cargo in the vessel, After the goods are loaded on board the ship a Mate’s Receipt is issued, and when the Mate’s Receipt is presented the Preventive officer, he returns the Export promotion copy, copy of Drawback Shipping Bill and presents the Mate's receipt to the Shipping Company with the request for issue of Bill of Lading (Negotiable and Non-negotiable) (©) Explain the customs clearance via sea alongwith documentation formalities. Ans. Customs Clearance Formalities: The Law in India mandiates that no overseas carrier can load the cargo on an Indian port without the express permission ofthe Customs Authorities under section 40 of the Indian Customs Act. The permission is granted to the exporter or his Clearing and Forwarding Agent by following the procedures and formalities as required under the law, tion in a preseribed form and submit supporting, the exporter the objectives ofthe customs control 1 (iii) Tos - (iv) To ch = been duly complied within respect of export. (0) To provide export data eu the Customs retums. Customs Clearance Stages Private Limited ‘The following are the four stages of Customs clearance: "Coals PLLC od UTA TER SA LEE AU ke aE ity (6) Verification of quay and value of gods, () Vert Trea re mincanslive gel @ Dae, (@) Physical examination of gods in the docks in accordance withthe examination order given atthe Customs House (0 Supervision of loading by te eustoms Preventive Offer. (@) Postshipment endorsement bythe Customs Preventive officer, Documentary Requirements Export is possible only withthe help of documents for movement of goods by ar or sea the customs permission for Shipmentis given ona presribed document know as Shipping Bll. nother cases like Rail Road the document is known as Bill of Export There are four types of Shipping Bill as under: ‘This is forthose goods which attract the payment of duty/css for exports ‘applies o those goods which are entitled tothe Duty Drawoack Scheme. 5, Free Shipping BI/BII of Export: These are those goods which donot tact Export Duty and arent eigtble for Duty Drawback Pldtoortisoment To get IGNOU Based Chapterwise Reference Books Including Many Solved Sample Question Papers for Various Courses Like B.A. B.Com B.A.Hons. M.A. M.Com M.B.A. B.C.A. M.C.A. MRD. MSW. M.TM. BSc. BTS BIMC CTE DNHE B.lis etc. Visit : www.neerajbooks.com (Saudy ar SOLVED ASSIGNMENT Badshah Assignment Solution Guide trom studybadahah.com (2021-2022) 4. Ex-Bond Shipping Bill/Bill of Expor warehouses, ‘The exporter or his CFA has to submit the following documents to the Customs Department for Customs clearance: 1. Shipping Bill in duplicate, triplicate, quadriplicate duly filled, in signed and stamped 2. Declaration regarding truth of statement made in the Shipping Bill, 43. Invoice copy 4. GR Form 5. Export Licence, ifrequired 6. 7. 8 : This applies to these goods which are shipped from the customs bonded Quality Control Inspection Certificate = fu yx (©) The Shipping Bil involving Foreign Exchange wl ese! othe Appraisment setion whee they ar alloted to appraisers and examiners for 5 ati (e While we Appraiser wit oxaoke de DBE eerbabmald Mi BRE (@) Free ping Bill will be exar vy the, Examine O The v aes ipa abd Sita edayecat a luisa hukaigG rade por ficenes gutafpeit compliance wih statutory requirements, rate and amount of export duty te © nll AR, barishabre ain: ship Naas ot Jocks The “examination order” will also be counterendorsed by the principal Appraiser. (2) After completion of formalities tthe Appraisement Section, the documents are given tothe GR form clerk who puts the Shipping Bill Number onthe GR form and detaches the orginal tobe sent t0 RBL ( Further where export duty isto be paid, the documents are given to the exporter/CFA to pay it atthe cash and accounts department. After payment of duty, Shipping Bil (Original) is detached and the olher documents are given to the exporteriCFA. In other cass Shipping Bill original is retained at Customs House and other documents are given tothe exporter/Agent for bringing the goods tothe shipment shed and make Shipment arrangement. The second slage of Customs formalities isto earry-out physieal examination of goods in the shed. The goods ean be brought into the shed only after completing port formalities once the goods have been brought in the exporter CFA will present the Shipping bill tothe custom shed Appraiser / Examiner along with the following documents G) Invoice (ii) Packing List Advertisement To get IGNOU Based Chapterwise Reference Books Including Many Solved Sample Question Papers for Various Courses Like BA. B.Com B.A.Hons. M.A. M.Com M.B.A. B.C.A. M.C.A. M.RD. MS.W. M.T.M. B.Sc. BTS BIMC CTE DNHE Bis etc. Visit : www.neerajbooks.com SOLVED ASSIGNMEN Assignment Solution Guide (2021-2022) (ii) ARAIARS Forms Gv) Agmak Certificate, if applicable ‘The shed Appraiser/Examiner would carryout physical examination according (othe “examination order” given in Shipping Bill (Duplicate. ‘Once this activity is over the Examiner will give “Let Export” order on the Shipping Bill (duplicate) which constitutes the physical examination report. ‘Afr the physical examination report, the customs preventive officer at the docks gives permission for Shipment on the Shipping Bill (Duplicate) in the form of “Let Ship” order. ‘This copy is presented to the master of the carier who then in consultation with the concerned customs preventive office, commences loadin, ates Receipt” whichis obtain the exporter ‘The Mate ipment” on those documents where it is needed for claim of export Promotion Sony of Siin Bill, GR (Duplicate) and Commercial Invoice. 4. Commer following statements: (@) Export get any strategic vantages throu Ans. Expor 1. Less Doct Sales com — ft repeat business. #adshah . Customs declaration and doclmers Riphney Betshbmived We EOE CH 2. 3 4, 5 6. Electronic fund transfers are instant 7. 8. 9, 0. Rae OE Online Study and E-Learn Reduct sith in tg uy malariae rere yy lames inate eee rT om Eee Pldtoortisoment To get IGNOU Based Chapterwise Reference Books Including Many Solved Sample Question Papers for Various Courses Like B.A. B.Com B.A.Hons. M.A. M.Com M.B.A. B.C.A. M.C.A. MRD. MSW. M.TM. BSc. BTS BIMC CTE DNHE B.lis etc. Visit : www.neerajbooks.com SOLVED ASSIGNMENT Assignment Solution Guide www studybadshahcom (2021-2022) 21, Better enterprise resource planning. 22, Better vendor development and management, (6) Documents against acceptance do not have a usage period. Ans. Under the contract the duty of the exporter is to ship the contracted goods in agreed packing, as per the contracted ‘mode of transport and as per the schedule of time and delivery along with the tendering of documents as per the contract to the importer. I is the duty of the importer to release due payment on receipt of documents showing the proof of delivery to a designated cartier for delivery atthe desired point ot port and bear all costs and risk atthe inward port. Most of the exporters, handover the shipping documents for all export consignments to a banker in their country, who arrange to send such documents (oa designated banker in the country of import and handover the carriage receipt (othe importer on receipt of payment of the ‘compulsions ofthe trade practices and the willo ind tough, so isthe credit being hotly persued and de competition; the eredit has become one of most want to expand wg and ready to extend credit but they wa Insurance policies duly assigned to t soever reasons, (@) Export in various institutional guarantees and apy -ventuality of non-payment by the buyer Ans. Incenti ee is

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