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.
Discuss the process involved in securing for exports.
Q 4.
What is Advance License Scheme?
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 was the objective of MIGA?
Q 7.
What is Shipping Bill?
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.
Write a detailed note on features, structure, objectives and functioning of WTO.
Q 11.
List out major affiliated bodies of the World Bank.
Q 12.
What is the main objective of WTO?
Q 13.
Why is export promotion necessary?
Q 14.
How many Export Promotion Councils are there in India?
Q 15.
Define Export Processing Zones.
Q 16.
What is pre-shipment finance?
Q 17.
Name the most important document used in import.
Q 18.
When was State Trading Corporation established?
Q 19.
Explain briefly the process of customs clearance of export goods.
Q 20.
Discuss the principal documents used in exporting.
Q 21.
Why is it necessary for an export firm to go in for pre-shipment inspection?
Q 22.
Explain the term FOB.
Q 23.
Santa Cruz is famous for which exclusive items?
Q 24.
Write short note on Indent House and Dock Challan.
Q 25.
Write the full form of ICSID.
Q 26.
What is a Letter of Credit? Why does an exporter need this document?
Q 27.
Why did WTO establish? What are its objectives?
Q 28.
Explain the meaning of Mate's Receipt.
Q 29.
Give full form of EPZ and SEZ.
Q 30.
Discuss the formalities involved in getting an export license.
Q 31.
List and explain various incentives and schemes that the government has evolved for promoting the country's foreign trade.
Q 32.
Who is a clearing agent?
Q 33.
Explain the steps of export procedure.
Q 34.
Explain different organizations involved in export promotion or facilitating foreign trade.
Q 35.
When was IIFT formed?
Q 36.
Why is it necessary to get registered with an Export Promotion Council?
Q 37.
What is IMF? Discuss its .various objectives and functions.
Q 38.
How many Commodity Boards are there in India?
Q 39.
Your firm is planning to import textile machinery from Canada. Describe the procedure involved in importing.
Q 40.
Name the certificate which is used for ensuring timely payment.
Q 41.
How many regional and international offices does ITPO have?
Q 42.
Which agency of World Bank provides loan to private sector of developing countries?
Q 43.
Define Mate's Receipt.
Q 44.
Discuss the principal documents used in exporting.
Q 45.
What is the purpose of pre-shipment finance?
Q 46.
Explain the term FOB.
Q 47.
Who is a clearing agent?
Q 48.
Discuss the process involved in securing for exports.
Q 49.
Write the full form of DTA.
Q 50.
Which certificate is necessary to prove that goods are produced in the home country itself ?
