M.Com. DEGREE EXAMINATION, APRIL 2017
Second Semester
Commerce
EXPORT IMPORT DOCUMENTATION
(2016 onwards)
Time 3 Hours Maximum 75 Marks
Part A x 3 15)
Answer all questions.
All questions carry equal marks.
1. What is the significance of Export Credit Insurance?
2. What are the significances of multimodal transports?
3. State the significance of Advance licenses.
4. Write a short note on Software Technology Park.
5. Point out any three objectives of export promotion
council.
Part B 10 50)
Answer all questions choosing either or
6. Discuss the types of Letters of credit.
Or
Summarise the commercial documents used in
exports.
Sub. Code
611203
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7. State the types of cargo insurance clauses.
Or
Elaborate the significance of Multimodal transport
documentation.
8. Enumerate the promotional schemes available for
Indian exporters.
Or
Explain the general provisions regarding export and
import of agriculture products.
9. State the special features of Special Economic
Zones.
Or
Elaborate the special provisions regarding Duty
Free Credit Entitlement Schemes.
10. Summarise the roles of Indian Institute of Foreign
Trade.
Or
Explain the roles of Marine Products Export
Development Authority.
Part C 10 10)
Case Study
11. Read the following case and answer the questions given
at the end.
In October, a French company (seller) and a Shanghai
company (buyer) have set up a contract of selling 200 sets
of electronic computers (1000 USD each), and the
payment shall be made according to the irrecoverable
letter of credit. And the delivery should be made on
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December at Port de Marseille. On November 15, Bank of
China Shanghai Branch (issuing bank) made a 200,000
irrevocable letter of credit according to the instruction of
the buyer and commissioned a French bank in Marseille
to notify and negotiate this letter of credit. On December
20, the seller loaded the 200 computers on board and got
the bill of lading, insurance policies, invoices and other
documents as required by the letter of credit. And then it
went to the Marseille bank for negotiation. Upon review,
the documents are consistent; therefore the bank had
paid 200,000 immediately to the seller. At the same
time, 10 days the cargo ship left the harbor of Marseilles,
the cargo, along with all the goods, bank into the sea in a
heavy storm. By that time the issuing bank had received
the whole set of the documents and the buyer had already
known the total loss of the goods. Bank of China
Shanghai Branch intends to reimburse the negotiating
bank to pay the purchase price of 200,000 on the
grounds that its customers can not expect the goods. In
accordance with international trade practices, the
following questions are asked
When the risk of the consignment would is
transferred from the seller to the buyer?
Whether Issuing bank would exempt from the
payment obligations due to the total loss of the
goods, if so, on what basis?
How to compensate the loss of the buyer?