Export Import Procedures Documentation Set 2

QN1. 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

Answer

Answer: a) Boost manufacturing , Augment exports & Generate employment

QN2. Under Advance License goods imported cannot be used in the unit of :

a) License Holder

b) Jobber

c) Supporting manufacturer

Answer

Answer: a) License Holder

QN3. 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

Answer

Answer: b) Organize trade fairs, exhibitions

QN4. 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

Answer

Answer: a) All of above

QN5. 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%

Answer

Answer: d) 10%

QN6. Sale by EOU to SEZ units is treated as :

a) Physical Export

b) Deemed Export

c) Import

d) Tradin

Answer

Answer: c) Import

QN7. Which of the following is not a duty exemption / remission scheme

a) Advance Authorization

b) DEPB

c) EPCG

d) Duty Drawback

Answer

Answer: a) Advance Authorization

QN8. 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

Answer

Answer: a) Enhance Trade

QN9. 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

Answer

Answer: b) DTA

QN10. What does FOB stand for?

a) free on board

b) for billing

c) free original barbecue

d) For on board

Answer

Answer: a) free on board

QN11. 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.

Answer

Answer: b) The seller has to pay for the transport until the goods are being unloaded at the port of destination.

QN12. 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.

Answer

Answer: b) The seller pays all the costs and bears the risk until the goods have been delivered on his side of the border.

QN13. 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

Answer

Answer: c) DDP

QN14. Which terms are cheapest for the seller?

a) FAS

b) EXW

c) CIF

d) DDP

Answer

Answer: b) EXW

QN15. 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.

Answer

Answer: b) The seller makes the goods available at his premises.

QN16. Which of the following is a regulatory Document?

a) Packing List

b) Shipping Instructions

c) Insurance Declaration

d) GR Form

Answer

Answer: c) Insurance Declaration

QN17. 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

Answer

Answer: b) In advance before delivery of goods

QN18. 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

Answer

Answer: b) Exporter has maximum risk

QN19. 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

Answer

Answer: b) After payment is made

QN20. 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

Answer

Answer: a) Mate’s Receipt

QN21. 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

Answer

Answer: c) port/airport based SEZs, on a case to case basis

QN22. 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

Answer

Answer: c) 15 days

QN23. 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

Answer

Answer: b) It is a document of title to goods.

QN24. Premier Trading House should have minimum export performance of Rs.________.

a) 10000 Crs

b) 7500 Crs

c) 5000 Crs

d) 9000 Crs

Answer

Answer: c) 5000 Crs

QN25. 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

Answer

Answer: d) Importing Capital Goods

QN26. Vitamin – A as a drug can canalized through

a) MMTC

b) ITPO

c) STC

d) EPI

Answer

Answer: a) MMTC

QN27. 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

Answer

Answer: d) Back-to-back Letters of Credit

QN28. 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

Answer

Answer: b) Ministry of Commerce

QN29. 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

Answer

Answer: d) Export of capital goods

QN30. 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

Answer

Answer: b) Neutralize incidence of customs duty on import content of export product

QN31. Tripur in Tamil Nadu is Town of Export Excellence for

a) Hosiery Products

b) Sea food

c) Handicrafts

d) Coir Products

Answer

Answer: a) Hosiery Products

QN32. Main objective of Served from India Scheme is to promote export of

a) Services

b) Tea

c) Coffee

d) Handicrafts

Answer

Answer: a) Services

QN33. 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

Answer

Answer: c) Chemical Products

QN34. 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

Answer

Answer: c) Issues licenses to exporters and monitors their corresponding obligations

QN35. 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

Answer

Answer: c) total cost of the transaction based on the terms of sale

QN36. 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

Answer

Answer: b) Prepared as per the format of the customs authority of the importing country

QN37. 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

Answer

Answer: b) Commerce Minister

QN38. 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

Answer

Answer: a) 5 Crs

QN39. 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

Answer

Answer: c) Import of capital goods

QN40. 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,

Answer

Answer: d) Creation of new State level export promotion industrial / zones,