Professional Documents
Culture Documents
Course: MBA
LC Code: 00918
Subject Code: C E I M
Repositioning. Many containers are moved empty (20% of all flows). Either
full or empty, a container takes the same amount of space. Divergence
between production and consumption at the global level requires the
repositioning of containerized assets over long distances (transoceanic).
Theft and losses. High value goods and a load unit that can forcefully
opened or carried (on truck). Vulnerability between terminal and final
destination. About 10,000 containers are lost at sea each year (fall
overboard).
Illicit trade. Instrument used in the illicit trade of goods, drugs and weapons,
as well as for illegal immigration. Concerns about the usage of containers for
terrorism.
Q2. List out the various export promotion schemes currently available to
exporters. Explain MDA in detail.
a) List of various export promotion schemes
b) Description of MDA
Ans: a) List of various export promotion schemes:
To achieve the objectives laid down under the Foreign Trade Policy 2004-09 and
double Indias percentage share of global merchandise trade by the year 2009, the
government is committed to providing a stimulus to exports through various export
promotion schemes from time to time. Details of the existing Export Promotion
Schemes are as follows:
1. Advance licensing scheme
2. Duty Free Replenishment Certificate (DFRC) scheme
3. Duty drawback scheme
4. Export Promotion Capital Goods (EPCG) scheme
5. Export Oriented Units (EOUs), Electronics Hardware Technology Parks
(EHTPs), Software Technology Parks (STPs) scheme
6. Served from India scheme
7. Target Plus scheme
8. Duty Entitlement Pass Book (DEPB) Scheme
9. Vishesh Krishi Upaj Yojana
The Government has formulated a number of export promotion schemes to support
and promote exports. Except for Duty Drawback Scheme, the policy framework for
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Q3. What are the advantages and disadvantages of air freight as compared to
sea freight? Describe Air Way Bill and its use.
Comparison of air and sea freight
Air Way Bill and its use
Ans: Comparison of air and sea freight:
1. Cost
You probably dont have to be told to consider the costs before an undertaking. As a
business person, you consider the bottom line and as an individual, you have a
budget. Naturally, youre going to want to know which will cost you less, air freight or
ocean freight. Typically, you will hear that shipping by ocean is cheaper than shipping
by air.
To make the best decision, it helps to be educated about how carriers charge for
international shipping. Airlines bill you by what is called a chargeable weight.
Chargeable weight is calculated from a combination of the weight and size of a
shipment. Sea carriers charge per container rates for shipping in standard containers
(20 and 40 being the most common sizes). While weight can factor into the price
from sea carriers, their charge tends to be based more on the size of a shipment. If
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1. The first three digits are the airline prefix. Each airline has been assigned a
3-digit number by IATA, so from the prefix we know which airline has issued
the document.
2. The next seven digits are the running number/s - one number for each
consignment
3. The last digit is what is called the check digit. It is arrived at in the following
manner:
The seven digit running numbers are divided by 7, by using a long division
calculation. The remainder becomes the check digit. That is why no AWB number
ends with a figure greater than 6. Air waybills are issued in 8 sets of different colours.
The first three copies are classified as originals. The first original, Green in colour, is
the Issuing Carrier's copy. The second, coloured Pink, is the Consignee's Copy. The
third, coloured Blue, is the Shipper's copy. A fourth Brown copy acts as the Delivery
Receipt, or proof of delivery. The other three copies are white.
Q5. You are a merchant exporter. A prospective overseas client has shown
interest in your products. Write a letter making a firm offer mentioning all
relevant facts regarding product features, payment terms, transport details,
insurance, delivery schedules, packaging etc.,? Assume all relevant details
about the product and the client.
Ans: Exporting and importing are two sides of the same coin; both supply
customers with products manufactured outside the country. Exports now account for
over 15% of global GNP and are growing at an annual compound rate in excess of
10%. Export marketing requires a knowledge of the target market, a marketing mix
decision, planning, organisation and control and information systems. Exporting is
often an incremental process, from unsolicited order filling to deliberate export
planning. No doubt few firms will export unless
Q6. List out the Principal Export Documents along with a brief description of
each of them.
List of Principal Export Documents
Description of Principal Export Documents
Ans: List of Principal Export Documents:
Export procedure describes the documents required for exporting from India. Special
documents may be required depending on the type of product or destination. Certain
export products may require a quality control inspection certificate from the Export
Inspection Agency. Some food and pharmaceutical product may require a health or
sanitary certificate for export.
Shipping Bill/ Bill of Export is the main document required by the Customs Authority
for allowing shipment. Usually the Shipping Bill is of four types and the major
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The following are the export documents required for the processing of the
Shipping Bill:
4 copies of the packing list mentioning the contents, quantity, gross and net
weight of each package.
The formats presented for the Shipping Bill are as given below
Blue Shipping Bill in 7 copies for exports under the DEPB scheme
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