Question:
Your firm is planning to import textile machinery from Canada. Describe the procedure involved in importing.
Answer:
In order to import textile machinery from Canada, the firm will have to take the following steps:
- The firm (the importer) should first make an enquiry about the price of the machinery, terms and conditions on which the selected Canadian exporter is willing to supply the goods and such related information. It should then send the trade enquiry to the exporter. On receipt of the trade enquiry, the exporter will prepare a quotation and send it to the importer.
- The importer must find out whether the goods to be imported are subject to import licensing. If needed, it must secure an import license.
- The firm must then convert domestic currency into foreign currency to make payment to the exporter. This is done by submitting an application to a bank in the prescribed form along with documents.
- Once the import license is obtained, the importer can place an order with the exporter specifying the price, quantity and quality of the goods required.
- The importer will be required to send a letter of credit to the Canadian exporter. This letter is obtained from the importer's bank and acts as a bank guarantee that a draft of a specified amount drawn on it by the exporter will be honoured.
- The next step is for the importer to arrange for finance in order to make payment to the exporter on the arrival of the goods. This is necessary to avoid penalties on account of any delay in payment.
- Once the goods are shipped, the exporter will send a shipment advice to the importer. This document is proof of dispatch of the goods and contains information about the bill of lading, name of the vessel with date, port of export, description of goods, etc.
- The importer must then prepare a bill of exchange that is to be handed over to the exporter's banker in exchange for the export documents. After this is done, the importer is required to instruct its bank to transfer money to the exporter's bank account.
- An import general manifest will be issued by the person in charge of the carrier (ship or airliner) in which the goods are being imported. This is done in order to inform the officer in charge at the dock or the airport about the arrival of the goods. This document contains information about the goods being imported, and it is on the basis of this document that unloading of the cargo will take place.
- Once the goods arrive at the port, the importer must get customs clearance, which in turn requires a delivery order, a port duty dues receipt and a bill of entry.
International Business II
Q 1.
List various affiliated bodies of World Bank.
Q 2.
Name any two WTO Agreements.
Q 3.
What is Advance License Scheme?
Q 4.
Discuss the process involved in securing for exports.
Q 5.
Explain the meaning of the following documents used in connection with import transactions
- Trade enquiry,
- Import license,
- Shipment of advice,
- Import general manifest,
- Bill of entry.
Q 6.
What is Shipping Bill?
Q 7.
What was the objective of MIGA?
Q 8.
Name the most important document of export.
Q 9.
Write short notes on the following:
- UNCTAD
- MIGA
- World Bank
- ITPO
- IMF
Q 10.
List out major affiliated bodies of the World Bank.
Q 11.
Write a detailed note on features, structure, objectives and functioning of WTO.
Q 12.
How many Export Promotion Councils are there in India?
Q 13.
What is the main objective of WTO?
Q 14.
Why is export promotion necessary?
Q 15.
Define Export Processing Zones.
Q 16.
Name the most important document used in import.
Q 17.
What is pre-shipment finance?
Q 18.
Why is it necessary for an export firm to go in for pre-shipment inspection?
Q 19.
Explain briefly the process of customs clearance of export goods.
Q 20.
When was State Trading Corporation established?
Q 21.
Discuss the principal documents used in exporting.
Q 22.
Explain the term FOB.
Q 23.
Why did WTO establish? What are its objectives?
Q 24.
Santa Cruz is famous for which exclusive items?
Q 25.
Write short note on Indent House and Dock Challan.
Q 26.
Discuss the formalities involved in getting an export license.
Q 27.
Write the full form of ICSID.
Q 28.
Explain different organizations involved in export promotion or facilitating foreign trade.
Q 29.
What is a Letter of Credit? Why does an exporter need this document?
Q 30.
Explain the steps of export procedure.
Q 31.
List and explain various incentives and schemes that the government has evolved for promoting the country's foreign trade.
Q 32.
Give full form of EPZ and SEZ.
Q 33.
How many regional and international offices does ITPO have?
Q 34.
Explain the meaning of Mate's Receipt.
Q 35.
Why is it necessary to get registered with an Export Promotion Council?
Q 36.
What is IMF? Discuss its .various objectives and functions.
Q 37.
Your firm is planning to import textile machinery from Canada. Describe the procedure involved in importing.
Q 38.
When was IIFT formed?
Q 39.
Define Mate's Receipt.
Q 40.
Who is a clearing agent?
Q 41.
How many Commodity Boards are there in India?
Q 42.
Discuss the process involved in securing for exports.
Q 43.
Name the certificate which is used for ensuring timely payment.
Q 44.
Which agency of World Bank provides loan to private sector of developing countries?
Q 45.
What is Bill of Lading? How does it differ from bill of entry?
Q 46.
What is Performa Invoice?
Q 47.
Explain the term FOB.
Q 48.
What is the purpose of pre-shipment finance?
Q 49.
Which certificate is necessary to prove that goods are produced in the home country itself ?
Q 50.
Write the full form of DTA.
