IB0014

Q1.Describe Custom House agents and their responsibilities

A custom house agent is somebody entitled to act upon a company’s behalf on actions involving the import and export of goods. The phrase is most commonly used in India. There such agents must be licensed under section 146 of the Customs Act.

The purpose of a custom house agent is to tackle the problem that management of many businesses simply do not have the resources to personally deal with import and export issues. This is a particular concern given that India is traditionally a nation. There is also a high degree of bureaucracy in Indian business.

The laws governing these agents specifically state that any action they take is treated legally as if it was made by the company itself. In legal terms, the agent is treated as if they were the legal owner of the goods they deal with. One exception to this is that a custom house agent cannot normally be held personally responsible for any duty that is not paid by the company.

Responsibilities

Authorised clearances only against authorization: A CHA is required to clear goods for import or export with specific authorization from the principal, which must be produced whenever required by the Deputy or Assistant Commissioner.

Personal clearance: The CHA must personally clear the goods or clear them through an employee designated by the Commissioner. All documents should list the CHA's name at the top. The CHA should not attempt to influence the conduct of customs officers in matters pending before him or his subordinates; there should be no threats, false accusations or duress against such officers, and no promise of advantage, benefit or gift should be made or bestowed on such officers. The CHA's duties should be discharged expeditiously, and he cannot charge more than the rates approved by the Commissioner.

Conflicts of interest: If the CHA is a former officer of a department, he cannot represent any matter before a customs officer which he had considered as an officer. He cannot use facts which came to his knowledge as an officer.

Correct advice: The CHA must advise the client to comply with the provisions of the Act and the regulations, diligently ensuring the imparting of correct, relevant information to the client for clearance of cargo or baggage. If there is non-compliance by a client, the CHA must bring it to the attention of the deputy or assistant commissioner. This regulation requires the CHA to provide information to the department.

Fiscal accountability: The CHA must promptly pay the government all monies received from the client for duties and taxes. Any money received from the client or from the government should be promptly and fully accounted to the client.

Q2.Describe different types of maritime fraud along with precautionary measures to combat them

Maritime fraud occurs when one of the parties involved in an international trade transaction like the buyer, seller, shipowner, charterer, ship's master or crew, insurer, banker, broker or agent illegally secures money or goods from another party to whom, on the face of it, he has undertaken specific trade, transport and financial obligations. Development

Types

Frauds are broadly classified into Documentary, Shipping and Charterparty frauds.

1. Documentary: Some or all of the documents specified by the buyer for presentation by the seller to the bank to receive payments are forged.

2. Shipping: It includes scuttling, deviation, cargo theft, arson or so called accidental fires in which vessel or cargo isdisposed of with the connivance of her owners.

3. Charter Party: It occurs when one or two contracting parties default, leaving the others to clear the mess. These contracting parties for a Time or Voyage charter are shipowner, charterer and cargo owner. Such frauds were not uncommon in the past but the problems escalated following oil boom, excess tonnage, congested ports, inexperienced developing countries in international trade and disturbed political or social conditions in various countries.

4. Theft of cargo by crew.

Precautionary Measures

The following precautionary measures are suggested:

a. Dealing only with reputed companies.b. Awareness to traders by Embassy commercial sections and Chambers of Commerce of

the risks in trade and transport transactions and the necessity to check before advancing the names of potential suppliers, buyers or transport companies.

c. Regarding the mode of payment from the seller 's point of view a documentary credit confirmed by a bank acceptable to him will be the safest provided he will be paid on presenting documents on time conforming to the terms and conditions of the documentary credit.

d. Proper understanding of shipment terms.e. Inspection and approval of goods and vessels by authoritative organisations.

Q3What are the essential elements of a marine insurance policy? Explain the different types of marine insurance policies

There are some essential elements of marine insurance. Moreover, Marine insurance is a legal contract. For that without general elements, there are some essential elements of marine insurance.

1. Elements of general contract: In marine insurance contract, there are all elements of general insurance contract. Cause as an arrangement contract it a general contract. Which kinds of contract are including in general contract:

(a)Two parties: In contract of marine insurance, there are two parties. One party is insurance company and another party is insurance holder.

(b)Offer and acceptance: Like general contract, an insurance holder offered to insurance company for accept his policy. If a policy is accepted then contract are accomplish.

(c)Legal Consideration: As natural contract, insurer makes confirmation to insurance holder for deducing risk by money. It is given from insurer to insurance holder.

(d)Capacity of contract: Both parties should stay capacity of contract.

(e)Legal object: The contract should be legal contract.

(f)Green consent: Both parties have to give consent with freedom.

(g)Certainty: Insurance subject should be certainty.

(h)Written: Contract must be written.

2. Insurable interest: The insurable interest is the pecuniary interest where by the policy holder is benefited by the existence of the subject matter and is prejudiced by the death or damage of the subject matter.

3.Utmost good faith: As the under writer knows nothing and the man who comes to him to ask to insure knows underwriter without being asked of all the material circumstances, this is expressed saying it is a contract of utmost good faith.

4. Compensation for damage: Insurance is a contract of indemnity under which insurance company agrees to pay a certain sum of money to compensate loss caused the occurrence of uncertain event inconsideration of certain periodical payment premium.

5. Proximate cause: Some kinds of peril are caused by happened waste that is called proximate.

6. Proportionate contribution: If any waste is happened which did not count over all, its peril fulfill by proportionately.

7. Subject matter of insurance: In marine insurance way of ships, ships product, ships rent, etc. are known as a marine insurance subject matter or insurance.8. Period: There are two kinds of marine insurance policy. one of specific sea journey base and another one is time base.

9. Warranties: There are some conditions in marine insurance contract such as,I. ships neutralityII. journeys timeIII. safety timeIV. properties neutralityV. ability to ships journeyVI. legality of sea journeysVII. no late journey

TYPES

Hull and Machinery Insurance: cover for loss or damage to the vessel and its equipment. The causes of loss insured against are called perils and are named. They include fire, explosion, theft, piracy, bursting of boilers, negligence of the master and crew and “perils of the sea” - a broad marine insurance term which is internationally recognized to include flooding, sinking and grounding Protection and Indemnity Insurance: coverage for third party liabilities arising out of the ownership and operation of a vessel. The risks covered can include bodily injury to crew and passengers, pollution, wreck removal (e.g. when a vessel sinks and blocks a harbour entrance) as well as elements of collision liability not covered in your Hull and Machinery policy Cargo insurance: this type of insurance covers physical damage to, or loss of your goods whilst in transit by land, sea or air. Cargo insurance is usually provided by the means of one of three Institute Cargo Clauses ‐ A, B or C. Cargo Clause A provides the most cover with B and C giving less coverage Navigation limits include USA and Canadian coastal waters. We are able to negotiate and agree worldwide extensions with our underwriters – ask us for details All Marine Insurance policies from Axis Insurance have “A” rated security with an established world leader in marine insurance Axis Insurance can arrange cover for a multitude of maritime risks including pleasure craft, personal water craft, tugs, barges, commercial fishing vessels, sport fishing vessels, whale watching vessels, ferries, dinner cruises and floating lodges. We also cover boat yards, marine construction projects, wharfs, terminals, cargo and marinas No risk is too big or too small

Axis staff have traveled extensively throughout North America to see and understand the risks they are insuring. We don’t just know insurance we know your business and the challenges you face

Q4.Describe the main types of Packaging materials. Give two examples of products each type is mostly used for.

Plastic

This is the most common packaging material and, at the same time, one of the most difficult to dispose of. The factors common to all plastics are that they are light, strong cheap to manufacture. It is for these reasons that they are used so much, as an alternative to cardboard glass packaging materials.

Almost 10% of our rubbish consists of different types of plastic. They are a problem in landfills as they are bulky, they contaminate degrade slowly.

Separated the rest of the waste, they can must be upgraded for the good of everyone.

 

Metal

Appropriate for packaging foods (canned foods). For drinks, such as soft drinks beers, aluminium is often used.

Tin plate is a solid, heavy steel covered with tin to protect it against rust. It is used to package canned foods. It can be separated by magnets should be recycled in all cases.

Aluminium is attractive, light strong at the same time, but requires a lot of raw materials energy to make it. For this reason it must be recycled. The majority of cans of soft drinks, lids, aluminium foil, etc. are made aluminium.

Brick carton

A light, strong air-tight packaging material. Ideal for transporting storage. Its complex composition makes it difficult to reycle. It is becoming the main packaging material used for basic foodstuffs.

Complex packaging material, made up of several layers of plastic, paper aluminium. It is also difficult to recycle. It is used mainly to keep drinks such as milk, juice, etc.

 

Cardboard

Appropriate for packaging materials wrapping, preferable to "white cork". Its use may prove to be unnecessary when used for products which are already packaged sufficiently. In all cases, this packaging material is easy to recycle reuse. It is used in the form of boxes, sheets corrugated cardboard.

 

Glass

An ideal material for foods, especially liquids. It is inalterable, strong easy to recycle.

It is the traditional vessel in the home (jars, glasses, jugs, etc.). Its weight shape may involve some difficulties for transport storage.

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.

Q6.Explain Export Promotion Capital Goods scheme (EPCG) and Marketing Development Assistance (MDA) scheme promoted by the Government of India

The Export Promotion Capital Goods (EPCG) scheme was one of the several export-promotion initiatives launched by the government in the early '90s. The basic purpose of the scheme was to allow exporters to import machinery and equipment at affordable prices so that they can produce quality products for the export market .

The import duty on capital goods — like all other items — was high during that period, inflating the cost of capital goods nearly 50%, so the government allowed exporters to import capital goods at only 25% import duty. For waiver of the remaining portion of import duty, exporters

were supposed to undertake an 'export obligation' (a promise to export) which was worked out on the basis of the duty concession obtained.

Exporters were given eight years to carry out their commitment to export. Once the 'export obligation' was fulfilled, the owner of the capital goods concerned could sell them or transfer them to another facility. Till the promised export materialised, the owners of the machinery or equipment were barred from even moving the goods concerned out of their manufacturing unit.

 Market Development Assistance (MDA) Scheme 

Export Promotion continues to be a major thrust area for the Government. In view of the prevailing macro economic situation with emphasis on exports and to facilitate various measures being undertaken to stimulate and diversify the country's export trade, Marketing Development Assistance (MDA) Scheme is under operation through the Department of Commerce to support the under mentioned activities:

(i)   Assist exporters for export promotion activities abroad

(ii) Assist Export Promotion Councils(EPCs) to undertake export promotion activities for their product(s)  and commodities ;

(iii)    Assist approved organization/trade bodies in undertaking exclusive nonrecurring innovative activities connected with export promotion efforts for their members ;

(iv) Assist Focus export promotion programmes in specific regions abroad like FOCUS (LAC), Focus (Africa), Focus (CIS) and Focus (ASEAN +2) programmes ; and

(v) Residual essential activities connected with marketing promotion efforts abroad.

         Exporting companies with an f.o.b. value of exports upto Rs. 15.00 crore in the preceding year will be eligible for MDA assistance for participation in EPC etc. led Trade Delegations/ BSMs/Trade Fairs/ Exhibitions.

Under Reverse trade visits for prominent delegates and Buyers (one person from each organization) for participation in buyer cum Seller meets, exhibitions etc. in India from the Focus Area Regions, exhibitions etc. in India, the foreign delegates/ buyer/journalists would be assisted in meeting their return air travel expenses in economy excursion class upto the entry point in India. This would, however, be subject to financing only the well planned participations wherein the potential of the incoming delegate(s)/buyer(s)/journalist(s) have been screened by the concerned EPC and territorial division.

 

Discuss the Various techniques of Probability sampling techniques in detail with examples.

Definition of probability sampling Techniques of probability sampling

ANS.:Definition of probability sampling:In this sampling method, every unit has known (equal or not equal) chances for selection as a sampling unit in thetargeted population. Random, or probability sampling, gives each member of the target population a known probability of selection. This probability is called sampling ratio, and it is equal to the number of the items in the sample divided by the number of the population.

Techniques of probability sampling :Probability sampling techniques can be categorised as follows:1.Simple random2.Systematic random3.Stratified random4.Random clusters5.Stratified clusters

1.Simple random sampling: In this, there is equal possibility to select each element of the population. Similarly, there is equal possibility of selection of each combination of the elements.

2.Systematic random sampling: Systematic sampling is a more advanced than random sampling. In this method, the first unit is selected at random from the sampling frame. Other units are then selected at a regular interval depending on the population size and sample size.

Mathematically, if the population size is N, and the desired sample size is n, then sampling interval will be:k=N/n.Now, randomly select a number j between 1 and k, sample element jand then every kthelement thereafter, j+k, j+2k, etc.For example: N=64, n=8, k=64/8=8. Random j=3.

3.Stratified sampling: This method divides the data into a number of strata and within each stratum, random sampling is done. This can only be done when the distribution of population with respect to a particular factor is known to the interviewer.

Example: Characteristics like income, age, sex, region etc. can be used to stratify a population.

4.Cluster sampling: The process of sampling of complete groups or units is called cluster sampling. In this method, population is divided into groups called cluster, usually geographic or organisational. Clusters are chosen at random. Thereafter, either all units in the chosen clusters are studied or a simple random sample from each cluster is chosen.

For example: one survey is conducted by a researcher to know the academic performance of high school students in India.o Firstly researcher divides the entire population of India into differentcities (clusters).QUE5.

Explain the process of sampling and classification of non-probability sampling techniques. Definition of sampling process of sampling classification of non-probability sampling

ANS.Definition of sampling : It is the process of selecting a suitable sample, or a representative part of a population for the purpose of determining characteristics of the whole population.