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INDIAN INSTITUTE OF MATERIALS MANAGEMENT
Post Graduate Diploma in Materials Management
Graduate Diploma in Materials Management
PAPER No. 7
International Trade
Date: 11.06.2018 Max. Marks: 100
Time: 10.00 a.m. to 1.00 p.m. Duration: 3 Hrs.
Instructions:
1. From Part A answer all questions (compulsory). Each sub questions carries 1 mark. Total: 32 Marks
2. From Part B Answer any 3 questions out of 5 questions. Each sub-question carries 16 marks. Total 48 Marks
3. Part C is a case study (compulsory) with questions. Read the case study carefully and answer the questions. Total: 20 Marks
Part A 32 Marks
(Attempt all questions each sub questions carries 1 mark.)
Q 1. Select the most appropriate answer from the options given 8 marks
Normal duration of EXIM policy is
10 year 2 years 3 years 5 years
The customs valuation rules were introduced in the year
1962 1975 1988 1992
Which of the following document is not attached with
B/L Invoice Tender Enquiry Insurance
International trade is an exchange of
Capital Goods Services All of them
Bill of Entry is required in case of
Import Export Both import export None of above
Which of the following is not an export promotional scheme?
ECGC QABAL GATT DEPB
Which of the following is a trade block?
SEZ FERA UCPDC G7
The normal time limit for settlement of import payment is
180 days 100 days 365 days 260 days
June 2018
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Q 2 Match the following 8 marks
Column A Column B
Export Customs Document Imports/Exports
Bill of Entry IEC
Code for Import Export WTO
Global Trade Organization GBP
DAT BCD
f)Custom Duty Shipping Bill
Currency Excise Duty
Inland Tax Incoterm
Q 3 State whether the following statements are True or False. 8 marks
1. IGM gives details of the imported goods.
2. New Inco-terms were introduced by ICC in the year 2010.
3. Customs Clearance Act was introduced in 1963
4. Import of second hand capital goods can be covered under EPCG scheme
5. BoP gives better picture of country's economic situation
6. Incoterms stand for International Common Terms
7. IEC is issued by DGFT.
8. Marine survey is carried out to assess the loss of air freighted cargo.
Q 4 Expand the following terms 8 marks
1. EOU 2. TRIPS 3. ICD 4 SEZ
5 EPCG 6. NAFTA 7. STP 8 FEMA
PART-B
Write any three of the following questions 16 marks each (48 Marks)
Q 5 What is Letter of Credit What is the importance of Letter of Credit in the international business? Elaborate
different types of Letter of Credits prevailing in business?
Q 6 Write short notes on following (any two) 2 x8 16 marks)
Import Export clearance Procedures
ii) Importance of Incoterms
iii) Role of Trade Blocks in International Trade
iv) Balance of Payment and Balance Trade
Q 7 What is the difference between Global Marketing Domestic Marketing? Discuss the benefits
of International Trade.
Q What is the need for trade policy and government intervention? Discuss how tariffs, duties and subsidies are
determined.
Q 9 Distinguish between following (any two) 2 x8 16 marks)
FERA and FEMA
ii) IBRD WTO
iii) EPC EPCG
iv) Direct Imports High Sea Imports
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PART- C 20 marks
(Compulsory)
Q10.
Mehta Company is an Indian manufacturer exporter of aluminum profiles.
Mehta Co always use open top container for export. This exporter sent his one FCL consignment to foreign buyer at Germany. After receiving consignment at Hamburg Germany, importer (Buyer) found that there was water inside the container. Aluminum profile was also damaged. Therefore Germany buyer rejected this consignment.
Mehta company were ready to take back container in India for repairing and re-engineering. After repairing and re- engineering they want to re- export same container to original buyer at Germany.
Questions
1. Is it possible to bring back exported container in to India? Explain.
2. What are Customs formalities for the import of exported container?
3. What are Customs formalities for the re- export of repaired material?
4. As per Customs, What the main conditions for re-export are of repaired /re conditioned items.

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