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Summer-2013
Master of
Business Administration- MBA Semester 4
IB0013–Export
Import management-4 Credits
(Book ID:
1201)
Assignment
(60 Marks)
Note: Answer
all questions (with 300 to 400 words each) must be written within 6-8 pages.
Each Question carries 10 marks 6 X 10=60
Q1. When you establish an export
firm, there are various regulations which have to be followed. List the steps
in establishment of an export import firm. Explain the procedure for allotment
of IEC number.
Answer. In continuation to our first installment
which covered how to start and map out an import/export business, here we
provide the sales and distribution aspects of establishing an import/export
business.
• Price the product.
The business
model for an import/export business is based on two critical elements within
the international sales operation.
1. Volume
(number of units sold).
2.
Commission on that volume.
Q2. Export documentation is very
important aspect of export activity both for flow of goods and payment. List
the principal and auxiliary export documents. Explain any one document from
these in detail.
Answer. Principal export Documents:-
1. Export documents: Presented at the port of exit,
includes the names and addresses of the principals involved the destination of
the goods a full description of the goods and their declared value.
2. Consular Invoice or Certificate of
Origin: Some
countries consular invoices obtained from the country’s consulate and returned
with two to eight copies in the language of the country along with copies of
other required documents (e.g. import licenses, commercial invoice and
Q3. The export goods have to travel a
long distance before they reach importer. What are the various kinds of cargo
risks during transit of goods and how it can be covered?
Answer. These risks are explained more fully
below:-
1. Transport Risk
For a better
transport risk management, an importer must ensure that the goods supplied by
the exporter is insured. Whether the goods are transported by Sea or by Air,
the risk can be covered by Insurance. It is always advisable to set out the
agreement between the parties as to the type of cover to be obtained in the
Contract of Sale.
Q4. List the functions and explain
the various risks covered under Export Credit Guarantee Corporation.
Answer. The Export Credit and Guarantee
Corporation were set up as a Government undertaking in 1964 on the
recommendation of a study group on export finance. It works on ‘no profit no
loss’ basis. The main functions of the corporation are to provide insurance to
export risks and to finance exports. E.C.G.C. helps exporters by furnishing
guarantees to the financial banks in order to enable them to provide sufficient
credit facilities.
Q5. The goods must be cleared by
Customs authority of the country for export and import. Explain the meaning of
shipping bill. What are the steps involved in custom clearance of shipment of
goods by sea.
Answer. Shipping bill
Customs
document used where drawback is claimed, such as on goods exported or on
dutiable goods transshipped or re-exported from a bonded warehouse. It serves
basically as a statistical record. A bill of materials is a list that specifies
the parts used to build a product. When a company produces a product, it must
keep track of the materials and components used in its creation. This bill of
materials must be included with the product before shipping
Q6. What do you mean by pre-shipment
finance? Enumerate the RBI guidelines regarding pre-shipment finance.
Answer. Pre-shipment is also referred as “packing credit”. It is working capital
finance provided by commercial banks to the exporter prior to shipment of
goods. The finance required to meet various expenses before shipment of goods
is called pre-shipment finance or packing credit.
Financial
assistance extended to the exporter from the date of receipt of the export
order till the date of shipment is known as pre-shipment credit. Such finance
is extended to an
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can i get an answer of just Q3.
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