Tag: import and export procedure

Questions Related to import and export procedure

For promoting the export, the government has set up
1. The Central Advisory Board on Trade
2. The Trade Development Authority
3. The Federation of Indian Export Organisation
4. Commodity Boards
Which is correct?

business organisation import and export procedure types of foreign trade exports and imports nature and scope of foreign trade

  1. 1 and 3

  2. 2 and 4

  3. 1, 3 and 4

  4. all the above

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Correct Option: D

High cost of packaging are needed by _______ .

business organisation import and export procedure types of foreign trade exports and imports nature and scope of foreign trade

  1. heavy Items

  2. small Items

  3. intangible Items

  4. transport services

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Correct Option: A
Explanation:

The heavy items need to be packaged properly for their safe and damage free export to the destination, this kind of packaging also needs high amount of resources and are costlier.

In direct import/export, firms used middlemen to contact overseas buyers/sellers.

business organisation import and export procedure types of foreign trade exports and imports nature and scope of foreign trade

  1. True

  2. False

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Correct Option: B
Explanation:

In the process of direct import and export, the company itself imports or exports goods with any interference of any middleman or an agent.

Import & Export require huge amounts of foreign investments.

business organisation import and export procedure types of foreign trade exports and imports nature and scope of foreign trade

  1. True

  2. False

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Correct Option: B
Explanation:

Import and export do not require huge amount of foreign investment as the importer needs an exporter in foreign country. similarly, an exporter will need to follow export laws and need an importer in the foreign country. 

Produces do not have much contact with the foreign markets as goods are produced in the home country.

business organisation import and export procedure types of foreign trade exports and imports nature and scope of foreign trade

  1. True

  2. False

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Correct Option: A
Explanation:

The producers of the goods or products usually distribute their goods to the the traders of the domestic country to export their products. The traders are much involved in the international markets than the producers themselves.

Under the ___________ scheme, an exporter is allowed duty free supply of inputs required to manufacture export goods.

business organisation import and export procedure types of foreign trade exports and imports nature and scope of foreign trade

  1. export manufacturing under bod scheme

  2. advanced license scheme

  3. exemption of payment of sales tax

  4. all of the above

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Correct Option: B
Explanation:

Under the advanced license scheme, an exporter is allowed duty free supply of inputs required to manufacture export goods.

Various trade promotion measures and schemes available to business firms are mentioned in the ___________ policy.

business organisation import and export procedure types of foreign trade exports and imports nature and scope of foreign trade

  1. organisational

  2. export-import

  3. government

  4. legislative

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Correct Option: B
Explanation:

Various trade promotion measures and schemes available to business firms are mentioned in the export-import policy. this export-import policy is also known as the EXIM policy.

The refund of excise duties paid on the export goods is known as ________.

business organisation import and export procedure types of foreign trade exports and imports nature and scope of foreign trade

  1. EPCG

  2. EXIM

  3. duty drawbacks

  4. neither of the above

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Correct Option: C
Explanation:

Duty drawback compensates or refunds exporters for the duties paid on inputs used to manufacture, the excise duties paid for the export of the products.

______________ is to encourage the import of capital goods for export production.

business organisation import and export procedure types of foreign trade exports and imports nature and scope of foreign trade

  1. EPCG

  2. Exemption of payment of sales tax

  3. Advance licence scheme

  4. All of the above

Show answer
Correct Option: A
Explanation:

Export Promotion Capital Goods (EPCG) scheme is to encourage the import of capital goods for export production, it allows import of capital goods including spares for pre production, production, post production of export goods at zero duty.

______________ facility entitles firms to produce goods without payment of excise and other duties.

business organisation import and export procedure types of foreign trade exports and imports nature and scope of foreign trade

  1. EPCG

  2. Duty drawbacks

  3. Export manufacturing under bond scheme

  4. Neither of the above

Show answer
Correct Option: C
Explanation:

Export manufacturing under bond scheme facility entitles firms to produce goods without payment of excise duties and other duties. the duties that are paid for the export goods are also refunded under duty drawback scheme.