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INDIAN INSTITUTE OF MATERIALS MANAGEMENT Post Graduation Diploma in Materials Management Graduate Diploma in Materials Management Paper 7 INTERNATIONAL

TRADE
Date : 18.12.2006 Time: 10.00 am. to 1.00.pm. Instructions
1. From part A, contains 4 main questions with 8 sub questions carries 1 mark each. 2. From part B answer any 3 questions out of 5 questions. Each question carries 16 marks 3. Part C is case study with 5 sub questions. Total Marks 20. Read the case carefully and answer the questions

Max. Marks 100 Duration 3 Hrs

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Part A
Q : 1 Select the most appropriate answer from the options given : a) Bill of Lading is a document for (1) Transport (2) Import (3) Export b) ARE 1 form is to related to (1) Customs (2) Sales Tax 8 marks

(4) Customs

(3) Excise

(4) VAT

c) The normal validity of Advance Licence is (1) 12 months (2) 18 months (3) 24 months (4) 36 months d) The current EXIM policy is valid upto (1) 31-03-2007 (2) 31-12-2007 (3) 01-04-2007 (4)28-02-2007 e) Bill of Entry is required in case of (1) Import (2) Export (3) Both import & export (4) None of above f) Letter of Credit is given by (1) RBI (2) Bank (3) Customs

(4) DGFT

g) Indian customs act was implemented in (1) 1858 (2) 1975 (3) 1962 (4) 1988 h) The preferred L/C by importer is (1) Irrevocable, unconfirmed, with credit (2) Revocable, unconfirmed, at sight (3) Irrevicable, confirmed, with credit (4) Revocable, confirmed, at sight

Q: 2 Match the following a) Advance Licence b) EODC c) Cenvat d) Incoterms e) Shipping Bill f) NAFTA g) Octroi h) L/C

8 Marks 1) N Form 2) Raw Material 3) Obligation Certificate 4) Trade Block 5) Export document 6) Bank Document 7) ICC 8) Credit Scheme

Q: 3 State whether the following statements are True or False. 8 marks 1. IBRD was earlier known as World Bank. 2. The EXIM policy is governed by DGFT. 3. The IEC is to be renewed after every 5 years. 4. RCMC is permanent registration. 5. FERA is replaced by FEMA. 6. The currency of Pakistan in Rupees. 7. ECGC is insurance credit. 8. Foreign Trade (Dev & Reg) act inducted in year 1992. Q:4 Expand the following terms : 1. SAARC 5. CIF 2. SAD 6. IMF 3. UCPDC 7. FEMA 8 marks 4.EPCG 8. SEZ

Part: B Solve any 3 questions. Each question carries 16 marks. Q: 5 Write steps required for Customs Clearance of goods imported at Chennai Seaport for the import of Handicrafts.

Q: 6 Write short notes on following (any four) i) Import of Capital Goods ii) Export Documentation iii) Hedging iv) Forex Rates v) EXIM bank vi) Customs Valuation Rules

Q: 7. what are different types of L/C? How many parties are involved in L/C? Q: 8. Illustrate the import cycle / export cycle for import / export of any product in / from India? Q: 9 Distinguish between following (any four) i) Irrevocable & Revocable L/c ii) OGL & Negative List of items iii) FOB & C&F iv) Imports & Exports v) BCD & CVD vi) B/L & B/E

Part C - Compulsory Q : 10 M/s Bharat Bijlee Ltd, Barodaj is looking for import of 25 nos. of Electric Motor at the rate of USD 95 per motor on FOB Tokyo Seaport, Japan basis. Calculate the following values: (a) Basic Customs Duty (BCD) (b) Countervailing Duty (CVD) (c) CIF values in Rs (d) Total cost in Rs (e) Cenvatable amount Use following data for calculation purpose: (a) Sea Freight @ 2% of FOB (b) Marine insurance @ 2% of C&F (c) Landing Charges @ 1% of CIF (d) Exch. Rate: 1 Yen = Rs 0.45 (e) BCD 15%, CVD 16% (f) Asseable Value = CIF value + Landing charges You may assume any data if required. ***********