Tag: import and export procedure

Quizzes (8) Questions (77)

Questions Related to import and export procedure

Multiple choice commerce international trade types of foreign trade exports and imports import and export procedure

Which of the following documents is not required in connection with an import transaction?

  1. Bill of Lading

  2. Shipping Bill

  3. Certificate of Origin

  4. Shipment Advice
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Shipping bill is a form used by Customs and Excise before goods can be exported from the country. It is the main document on the basis of which the customs office gives the permission to export. Hence shipping bill is used during export transaction and not during import transaction.

Multiple choice commerce international trade types of foreign trade exports and imports import and export procedure

Which of the following do not form part of duty drawback scheme?

  1. Refund of excise duties

  2. Refund of customs duties

  3. Refund of export duties

  4. Refund of income dock charges at the port of shipment
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Major duty drawbacks include refund of excess duties paid on goods meant for export, refund of custom duties paid on raw materials and machines imported for export production.

Multiple choice commerce international trade types of foreign trade exports and imports import and export procedure

Which one of the following is not a document needed to fulfill the customs formalities?

  1. Shipping bill

  2. Export licence

  3. Letter of insurance

  4. Performa invoice
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Export license is a document that grants the licensee the right to export a specific quantity of commodity to a specified country. Export license is not a document that is required to fulfill the custom duties.  

Multiple choice commerce international trade types of foreign trade exports and imports import and export procedure

The document containing the guarantee of a bank to honour drafts drawn on it by an exporter is ________.

  1. Letter of Hypothetication

  2. Letter of Credit

  3. Bill of Lading

  4. Bill of Exchange
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Letter of hypothetication written agreement, which authorizes a bank or lender to repossess and sell the pledged item in case of a default.

A letter of credit is a guarantee issued by the importer's bank that it will honour up to a certain amount the payment of export bills to the bank of the exporter.
A bill of lading is a document issued by a carrier to acknowledge receipt of cargo for shipment.It is a conclusive receipt, i.e. an acknowledgement that the goods have been loaded; and it contains or evidences the terms of the contract.
A bill of exchange is a binding agreement by one party to pay a fixed amount of cash to another party as of a predetermined date or on demand. Bills of exchange are primarily used in international trade.