Download GTU (Gujarat Technological University) MBA 2019 Winter 3rd Sem 4539296 Exim Procedures Previous Question Paper
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER (3) ? EXAMINATION ? WINTER 2019
Subject Code:4539296 Date:30/11/ 2019
Subject Name: EXIM Procedures
Time: 10:30 Am to 1:30 Pm Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Q.1
Definitions
a) IEC Number
a) b) Cart Ticket
c) GR forms
d) Inspection Certificate
e) DGFT
g) certificate of Origin
f) E-IEC
14
Q.2 (a)
Exporter is person, who exports or intends to export and holds an
importers/exporter code number, unless otherwise specifically exempted?.
Discuss
07
(b)
Discuss the objectives of MEIS & SEIS.
07
OR
(b)
Explain Registration process with GST and its importance in Export
07
Q.3 (a)
What do you mean by principal document for International trade? explain any
3 of them
07
(b)
Discuss various categories of importers and exporters
07
OR
Q.3 a)
Explain importance of Marine Insurance Policy and various types of marine
Insurance policy?
14
b)
Quality control is important aspect to focus on in export ?import. Discuss
various methods of quality control and pre-shipment Inspection.
Q.4 (a)
Discuss various import incentives under special schemes.
07
(b)
Warehousing is important link for import and export both. Discuss.
07
OR
Q.4 (a)
Explain any two contracts in Foreign Business Trade.
07
(b)
What is the role of customs House agents?
07
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Page 1 of 4
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER (3) ? EXAMINATION ? WINTER 2019
Subject Code:4539296 Date:30/11/ 2019
Subject Name: EXIM Procedures
Time: 10:30 Am to 1:30 Pm Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Q.1
Definitions
a) IEC Number
a) b) Cart Ticket
c) GR forms
d) Inspection Certificate
e) DGFT
g) certificate of Origin
f) E-IEC
14
Q.2 (a)
Exporter is person, who exports or intends to export and holds an
importers/exporter code number, unless otherwise specifically exempted?.
Discuss
07
(b)
Discuss the objectives of MEIS & SEIS.
07
OR
(b)
Explain Registration process with GST and its importance in Export
07
Q.3 (a)
What do you mean by principal document for International trade? explain any
3 of them
07
(b)
Discuss various categories of importers and exporters
07
OR
Q.3 a)
Explain importance of Marine Insurance Policy and various types of marine
Insurance policy?
14
b)
Quality control is important aspect to focus on in export ?import. Discuss
various methods of quality control and pre-shipment Inspection.
Q.4 (a)
Discuss various import incentives under special schemes.
07
(b)
Warehousing is important link for import and export both. Discuss.
07
OR
Q.4 (a)
Explain any two contracts in Foreign Business Trade.
07
(b)
What is the role of customs House agents?
07
Page 2 of 4
Q.5
Case study
This particular case is about import management by an automotive dealer
who deals with import of cars .it deals with the procedures involved in
import, and the problems that can arise in the import business.
Vemic auto is located in Vanda, Finland, in the north of Europe. It employs
25 people, many of whom are experts on car export and import. Klaus
Pohjala is the managing director of vemic Auto. Vemic auto handles the sales
and marketing of Mitsubishi cars, parts and accessories in Finland. It works
together with local sales offices to sells cars. Mitsubishi has its production
facilities in Japan., Thailand and The Netherlands. Therefore, the cars are
exported from the factories. Mitsubishi motors has its main European
headquarters in Bonn, In the Netherlands. In overlooks the sale of
Mitsubishis in Europe. The car sales of Vemic auto only deals with the
import of Mitsubishi cars. However, initially the Vemic Auto was solely
managing Mitsubishi products. The company was also part of bigger
company called Veho Group. This company dealt with the import of not only
Mitsubishi cars but also Mercedes Benz, ford, Citroen, Skoda, Honda and
Smart. In Finland, the Veho group is an exclusive importer of these brands.
The reason for focusing on all of these brands was that they believe in the
success of all of these brands, and making a (small) profit.
Mr. Tony Viidik, the logistics manager of Vemic Auto, is responsible for the
logistics of Mitsubishi vehicles, parts and accessories in Finland.
To understand how import works, one needs to look into the legal documents
that were required to import the cars in the Finland. What we discovered was
that the documents required diiferent from where they imported them from.
As mentioned, it has three main countries that it imports its vehicles, parts
and accessories from and these countries are japan, Thailand and the
Netherlands. The Difference is basically whether it is from an Asian country
or a European country.
The products are shipped from Japan and Thailand using a Roro vesse, where
the vehicles are ?rolled onboard the ship. This is the easiest way to transport
vehicles, as they are not a commodity that can easily be transported by, for
example, containers. The Roro vessels coming from Asia are deep sea
vessels, so they stop at the port of ZEEbrugge, Belgium, to unload the
vehicles and move them to smaller Roro vessels for further shipment to
Finland. There is need for a bill of Landing for shipment. The Bill of Landing
is a document that substantiates that the goods mentioned in it, are on board
the vessel, and that the shipment will be done by the carrier. In this case, the
goods are transferred from one ship to another in Zeebrugge, which means
that they need an offshore Bill of Landing.
In addition to the two Asian countries, Vemic Auto also imported some
vehicles from the Netherlands, where another factory is located. The main
document required for shipment is a T1 document is ?a declaration of
shopping for the transportation of non-community goods within EU. Their
definition of T1 document is ?a declaration of shipping for the transportation
of non-community goods between two locations in the EU customs area.? It
shows the custom offices of both countries that it is an EU product and that
no duty has to be paid over it, which is sufficient to transport the products
from one country to another.T1 document integrates the requirement of
transport document , exchange control declaration form, shipping bill and
Bill of Entry, which is the case in Non-EU countries.
In addition to these three main exporting countries, Vemic Auto has an
import agreement with a Swedish company that specializes in special parts
for the Nordic countries which is otherwise not provided by Mitsubishi.
There are special parts because they are made to suit the harsh weather
conditions one finds in the Nordic countries, and not elsewhere in Europe.
FirstRanker.com - FirstRanker's Choice
Page 1 of 4
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER (3) ? EXAMINATION ? WINTER 2019
Subject Code:4539296 Date:30/11/ 2019
Subject Name: EXIM Procedures
Time: 10:30 Am to 1:30 Pm Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Q.1
Definitions
a) IEC Number
a) b) Cart Ticket
c) GR forms
d) Inspection Certificate
e) DGFT
g) certificate of Origin
f) E-IEC
14
Q.2 (a)
Exporter is person, who exports or intends to export and holds an
importers/exporter code number, unless otherwise specifically exempted?.
Discuss
07
(b)
Discuss the objectives of MEIS & SEIS.
07
OR
(b)
Explain Registration process with GST and its importance in Export
07
Q.3 (a)
What do you mean by principal document for International trade? explain any
3 of them
07
(b)
Discuss various categories of importers and exporters
07
OR
Q.3 a)
Explain importance of Marine Insurance Policy and various types of marine
Insurance policy?
14
b)
Quality control is important aspect to focus on in export ?import. Discuss
various methods of quality control and pre-shipment Inspection.
Q.4 (a)
Discuss various import incentives under special schemes.
07
(b)
Warehousing is important link for import and export both. Discuss.
07
OR
Q.4 (a)
Explain any two contracts in Foreign Business Trade.
07
(b)
What is the role of customs House agents?
07
Page 2 of 4
Q.5
Case study
This particular case is about import management by an automotive dealer
who deals with import of cars .it deals with the procedures involved in
import, and the problems that can arise in the import business.
Vemic auto is located in Vanda, Finland, in the north of Europe. It employs
25 people, many of whom are experts on car export and import. Klaus
Pohjala is the managing director of vemic Auto. Vemic auto handles the sales
and marketing of Mitsubishi cars, parts and accessories in Finland. It works
together with local sales offices to sells cars. Mitsubishi has its production
facilities in Japan., Thailand and The Netherlands. Therefore, the cars are
exported from the factories. Mitsubishi motors has its main European
headquarters in Bonn, In the Netherlands. In overlooks the sale of
Mitsubishis in Europe. The car sales of Vemic auto only deals with the
import of Mitsubishi cars. However, initially the Vemic Auto was solely
managing Mitsubishi products. The company was also part of bigger
company called Veho Group. This company dealt with the import of not only
Mitsubishi cars but also Mercedes Benz, ford, Citroen, Skoda, Honda and
Smart. In Finland, the Veho group is an exclusive importer of these brands.
The reason for focusing on all of these brands was that they believe in the
success of all of these brands, and making a (small) profit.
Mr. Tony Viidik, the logistics manager of Vemic Auto, is responsible for the
logistics of Mitsubishi vehicles, parts and accessories in Finland.
To understand how import works, one needs to look into the legal documents
that were required to import the cars in the Finland. What we discovered was
that the documents required diiferent from where they imported them from.
As mentioned, it has three main countries that it imports its vehicles, parts
and accessories from and these countries are japan, Thailand and the
Netherlands. The Difference is basically whether it is from an Asian country
or a European country.
The products are shipped from Japan and Thailand using a Roro vesse, where
the vehicles are ?rolled onboard the ship. This is the easiest way to transport
vehicles, as they are not a commodity that can easily be transported by, for
example, containers. The Roro vessels coming from Asia are deep sea
vessels, so they stop at the port of ZEEbrugge, Belgium, to unload the
vehicles and move them to smaller Roro vessels for further shipment to
Finland. There is need for a bill of Landing for shipment. The Bill of Landing
is a document that substantiates that the goods mentioned in it, are on board
the vessel, and that the shipment will be done by the carrier. In this case, the
goods are transferred from one ship to another in Zeebrugge, which means
that they need an offshore Bill of Landing.
In addition to the two Asian countries, Vemic Auto also imported some
vehicles from the Netherlands, where another factory is located. The main
document required for shipment is a T1 document is ?a declaration of
shopping for the transportation of non-community goods within EU. Their
definition of T1 document is ?a declaration of shipping for the transportation
of non-community goods between two locations in the EU customs area.? It
shows the custom offices of both countries that it is an EU product and that
no duty has to be paid over it, which is sufficient to transport the products
from one country to another.T1 document integrates the requirement of
transport document , exchange control declaration form, shipping bill and
Bill of Entry, which is the case in Non-EU countries.
In addition to these three main exporting countries, Vemic Auto has an
import agreement with a Swedish company that specializes in special parts
for the Nordic countries which is otherwise not provided by Mitsubishi.
There are special parts because they are made to suit the harsh weather
conditions one finds in the Nordic countries, and not elsewhere in Europe.
Page 3 of 4
These parts, for example, include special spike tyres for icy roads. As
they are now dealing with another EU country, they only need to fill out
the T1 document.
The shipping documents required for Vemic Auto is something that is getting
more and more important in the globalized world we live in today. This is
that many countries have special agreements this is the EU. The EU wants to
promote export and import among the European counties that members of the
EU. In addition, non-EU countries like Norway, have special trade
agreements through EEA. This simplifies all the processes of shipping the
goods, but also removes many of the taxes on export and import where some
countries make agreements to promote import export between them.
Vemic Auto also dealt in some export. There have been cases when on an
ad-hoc basis, the Mitsubishi distributions of neighboring countries have
requested for certain types of vehicles that are in the stock of Vemic Auto,
which they then sell for a small profit. Negotiating prices with these people is
not tough, as they are acquainted with each other?s for years already. Their
shipment is then always done on CFR terms and the shipping company
creates a bill of lading or T1 document, based on which country they are
exporting to. Since the vehicle is sent on CFR terms, it means that the
exporter has to make agreements with the carrier. The price negotiations with
the shipping companies can be difficult and they address more than one
company to find the lowest freight charges.
Vemic Auto has always been exporting cars under CFR conditions. On the
other hand, their import from Asia and the Netherlands is done under other
incoterms, such as CIF conditions. CIF stands for cost, Insurance and Freight
(to importers port), and it means that these costs are included in the price they
have to pay on the vehicle. In other words, it means that the exporter
undertakes the legal responsibility of all the arrangements dealing with the
shipments, from booking a carrier to paying the insurance. In this case,
Mitsubishi Motors Corporation as Mitsubishi Motors Corporation wants
them to pay for the vehicles before they arrive in Finland.
Mitsubishi Motors Corporation is invoicing them when the vehicles are
booked on vessel and they then have one month to pay for the vehicles. Parts
and accessories. The lead time from Asia to Finland is approximately 6
weeks. The Finnish customs does not require a certificate of origin when the
proof of the origin can be determined from either the commercial invoice or
from the EUR1 document. It is used to ?validate claims for preferential duty
treatment. For Mitsubishi products from Asian countries, a commercial
invoice is sufficient.
It is interesting to see that Mitsubishi motors Corporation takes the
responsibility of the transport and everything that follows. One reason for this
might be that they know that it is in their own interest to get a good deal on
the shipment charges to other countries. As a big company they will have
stronger bargaining power with the carriers than a ?small? local importer in
Finland would have. Another aspect is that by doing the shipment themselves
they can collect all their orders in Europe and ship them together. In doing so,
they will probably avail discounts from the number of vehicles or parts that
they are shipping. It will, of course, be up to them to give these discounts to
the importer or keep them with the Mitsubishi Motors Corporation. It will
benefit them either ways.
When vemic Auto has ordered a number of vehicles and it has been
shipped from their original port, the vehicles arrive at Hanko Freeport
on the south coast to Finland. The cars remain there ? neither touched
nor did custom clear ? until they sell the vehicles to a dealer. First,
FirstRanker.com - FirstRanker's Choice
Page 1 of 4
Seat No.: ________ Enrolment No.___________
GUJARAT TECHNOLOGICAL UNIVERSITY
MBA ? SEMESTER (3) ? EXAMINATION ? WINTER 2019
Subject Code:4539296 Date:30/11/ 2019
Subject Name: EXIM Procedures
Time: 10:30 Am to 1:30 Pm Total Marks: 70
Instructions:
1. Attempt all questions.
2. Make suitable assumptions wherever necessary.
3. Figures to the right indicate full marks.
Q.1
Definitions
a) IEC Number
a) b) Cart Ticket
c) GR forms
d) Inspection Certificate
e) DGFT
g) certificate of Origin
f) E-IEC
14
Q.2 (a)
Exporter is person, who exports or intends to export and holds an
importers/exporter code number, unless otherwise specifically exempted?.
Discuss
07
(b)
Discuss the objectives of MEIS & SEIS.
07
OR
(b)
Explain Registration process with GST and its importance in Export
07
Q.3 (a)
What do you mean by principal document for International trade? explain any
3 of them
07
(b)
Discuss various categories of importers and exporters
07
OR
Q.3 a)
Explain importance of Marine Insurance Policy and various types of marine
Insurance policy?
14
b)
Quality control is important aspect to focus on in export ?import. Discuss
various methods of quality control and pre-shipment Inspection.
Q.4 (a)
Discuss various import incentives under special schemes.
07
(b)
Warehousing is important link for import and export both. Discuss.
07
OR
Q.4 (a)
Explain any two contracts in Foreign Business Trade.
07
(b)
What is the role of customs House agents?
07
Page 2 of 4
Q.5
Case study
This particular case is about import management by an automotive dealer
who deals with import of cars .it deals with the procedures involved in
import, and the problems that can arise in the import business.
Vemic auto is located in Vanda, Finland, in the north of Europe. It employs
25 people, many of whom are experts on car export and import. Klaus
Pohjala is the managing director of vemic Auto. Vemic auto handles the sales
and marketing of Mitsubishi cars, parts and accessories in Finland. It works
together with local sales offices to sells cars. Mitsubishi has its production
facilities in Japan., Thailand and The Netherlands. Therefore, the cars are
exported from the factories. Mitsubishi motors has its main European
headquarters in Bonn, In the Netherlands. In overlooks the sale of
Mitsubishis in Europe. The car sales of Vemic auto only deals with the
import of Mitsubishi cars. However, initially the Vemic Auto was solely
managing Mitsubishi products. The company was also part of bigger
company called Veho Group. This company dealt with the import of not only
Mitsubishi cars but also Mercedes Benz, ford, Citroen, Skoda, Honda and
Smart. In Finland, the Veho group is an exclusive importer of these brands.
The reason for focusing on all of these brands was that they believe in the
success of all of these brands, and making a (small) profit.
Mr. Tony Viidik, the logistics manager of Vemic Auto, is responsible for the
logistics of Mitsubishi vehicles, parts and accessories in Finland.
To understand how import works, one needs to look into the legal documents
that were required to import the cars in the Finland. What we discovered was
that the documents required diiferent from where they imported them from.
As mentioned, it has three main countries that it imports its vehicles, parts
and accessories from and these countries are japan, Thailand and the
Netherlands. The Difference is basically whether it is from an Asian country
or a European country.
The products are shipped from Japan and Thailand using a Roro vesse, where
the vehicles are ?rolled onboard the ship. This is the easiest way to transport
vehicles, as they are not a commodity that can easily be transported by, for
example, containers. The Roro vessels coming from Asia are deep sea
vessels, so they stop at the port of ZEEbrugge, Belgium, to unload the
vehicles and move them to smaller Roro vessels for further shipment to
Finland. There is need for a bill of Landing for shipment. The Bill of Landing
is a document that substantiates that the goods mentioned in it, are on board
the vessel, and that the shipment will be done by the carrier. In this case, the
goods are transferred from one ship to another in Zeebrugge, which means
that they need an offshore Bill of Landing.
In addition to the two Asian countries, Vemic Auto also imported some
vehicles from the Netherlands, where another factory is located. The main
document required for shipment is a T1 document is ?a declaration of
shopping for the transportation of non-community goods within EU. Their
definition of T1 document is ?a declaration of shipping for the transportation
of non-community goods between two locations in the EU customs area.? It
shows the custom offices of both countries that it is an EU product and that
no duty has to be paid over it, which is sufficient to transport the products
from one country to another.T1 document integrates the requirement of
transport document , exchange control declaration form, shipping bill and
Bill of Entry, which is the case in Non-EU countries.
In addition to these three main exporting countries, Vemic Auto has an
import agreement with a Swedish company that specializes in special parts
for the Nordic countries which is otherwise not provided by Mitsubishi.
There are special parts because they are made to suit the harsh weather
conditions one finds in the Nordic countries, and not elsewhere in Europe.
Page 3 of 4
These parts, for example, include special spike tyres for icy roads. As
they are now dealing with another EU country, they only need to fill out
the T1 document.
The shipping documents required for Vemic Auto is something that is getting
more and more important in the globalized world we live in today. This is
that many countries have special agreements this is the EU. The EU wants to
promote export and import among the European counties that members of the
EU. In addition, non-EU countries like Norway, have special trade
agreements through EEA. This simplifies all the processes of shipping the
goods, but also removes many of the taxes on export and import where some
countries make agreements to promote import export between them.
Vemic Auto also dealt in some export. There have been cases when on an
ad-hoc basis, the Mitsubishi distributions of neighboring countries have
requested for certain types of vehicles that are in the stock of Vemic Auto,
which they then sell for a small profit. Negotiating prices with these people is
not tough, as they are acquainted with each other?s for years already. Their
shipment is then always done on CFR terms and the shipping company
creates a bill of lading or T1 document, based on which country they are
exporting to. Since the vehicle is sent on CFR terms, it means that the
exporter has to make agreements with the carrier. The price negotiations with
the shipping companies can be difficult and they address more than one
company to find the lowest freight charges.
Vemic Auto has always been exporting cars under CFR conditions. On the
other hand, their import from Asia and the Netherlands is done under other
incoterms, such as CIF conditions. CIF stands for cost, Insurance and Freight
(to importers port), and it means that these costs are included in the price they
have to pay on the vehicle. In other words, it means that the exporter
undertakes the legal responsibility of all the arrangements dealing with the
shipments, from booking a carrier to paying the insurance. In this case,
Mitsubishi Motors Corporation as Mitsubishi Motors Corporation wants
them to pay for the vehicles before they arrive in Finland.
Mitsubishi Motors Corporation is invoicing them when the vehicles are
booked on vessel and they then have one month to pay for the vehicles. Parts
and accessories. The lead time from Asia to Finland is approximately 6
weeks. The Finnish customs does not require a certificate of origin when the
proof of the origin can be determined from either the commercial invoice or
from the EUR1 document. It is used to ?validate claims for preferential duty
treatment. For Mitsubishi products from Asian countries, a commercial
invoice is sufficient.
It is interesting to see that Mitsubishi motors Corporation takes the
responsibility of the transport and everything that follows. One reason for this
might be that they know that it is in their own interest to get a good deal on
the shipment charges to other countries. As a big company they will have
stronger bargaining power with the carriers than a ?small? local importer in
Finland would have. Another aspect is that by doing the shipment themselves
they can collect all their orders in Europe and ship them together. In doing so,
they will probably avail discounts from the number of vehicles or parts that
they are shipping. It will, of course, be up to them to give these discounts to
the importer or keep them with the Mitsubishi Motors Corporation. It will
benefit them either ways.
When vemic Auto has ordered a number of vehicles and it has been
shipped from their original port, the vehicles arrive at Hanko Freeport
on the south coast to Finland. The cars remain there ? neither touched
nor did custom clear ? until they sell the vehicles to a dealer. First,
Page 4 of 4
when the vehicle is sold to a dealer, it gets custom cleared. Custom
clearance is done automatically via EDI. A cargo declaration has to
electronically to the Assessing officer, who checks it and then approves
it. The Bill of Entry is then printed and the importer pays the duty for
the vehicles. Cars are then sent to the dealer who sells it to the
customer.
The reason why they keep the vehicles in the warehouses at the sea port until
it is ordered is that having a large stock of cars costs a lot of money. Whether
they have a storage in the Freeport or just outside the port there is not much
difference in the time it takes to get a car saved more money, because they
would have had to pay the tax. So, by having the storage within the port they
potentially save large amount of money by not paying import taxes until they
actually get it back themselves.
(a) Discuss about the various legal documents that were required by Vemic auto
to import the cars into Finland.
07
(b) Who takes the legal responsibility of all the arrangements dealing with the
shipments ? importer or exporter? Discus
07
OR
Q.5 (a) How does Mitsubishi Motors Corporation benefits by undertaking the
responsibility of the transportation arrangement?
07
(b)
What is the customer clearance Strategy for Vemic Auto? Is there any hurdles
they were facing in it?
07
*************
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This post was last modified on 19 February 2020