Unit 4

chapter in
Export Import Procedures and Documentation

1 of 3 sets

Chapter: Unit 4

1. Unit in a technology park is not eligible for

A. exemption from import duty
B. exemption from quantitative restrictions
C. tax exemptions
D. exemptions from registration requirements
o m
Answer:D
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2. Special Economic Zones are
a
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A. situated outside India, but subject to RBI control
q
c
B. treated as foreign territory and not Indian laws

M
C. governed by international and not Indian laws
D. prohibited from buying from Domestic Tariff Area
Answer:B

3. A SEZ cannot be established for

A. manufacture of goods
B. rendering of services
C. functioning as Free Trade and Warehousing Zone
D. none of the above
Answer:D

4. Special Economic Zones were created to

A. Boost manufacturing, Augment exports, Generate employment
B. Boost manufacturing , Augment exports , deemed exports
C. Exports of some special products
 D. None of the above
Answer:A

5. Private sector cannot develop Special Economic Zones

A. False
B. true
C. Can’t say
D. none
Answer:B

6. For EOU units Disposal of used packing material will be allowed on payment of
duty on
A. Transaction Value
B. CIF value
C. None of the above
D. Can’t say
Answer:A

7. Sale by EOU to SEZ units is treated as

A. Physical exports
B. Deemed exports
C. None of the above
D. Can’t say
Answer:A

8. FTWZ is expected to address the issues of ________.

A. Star Trading Houses
B. Global Trading network and warehousing zone
C. None of the above
D. Can’t say
Answer:B

9. What % of income tax exemption do the EOUs get?

A. 100%
B. 50%
C. Varies from Industry to Industry

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 D. None of the above
Answer:A

10. Special Economic Zones located in areas will be technically treated as

________.
A. Foreign Territory for applicability of domestic legislations
B. Financially independent
C. None of the above
D. Can’t say
Answer:C

11. The full form of EPZ:

A. Exempted Processing Zones
B. Export Promotion Zone
C. Export Processing Zone
D. None of the above
Answer:B

12. Full form of OBU is

A. Offshore Banking Units
B. Offshore Business Units
C. Overseas Business Units
D. None of the above
Answer:A

13. License holder shall furnish following details of material being imported
A. Specifications
B. Technical Characteristics
C. Pricing
D. All of the Above
Answer:D

14. Special Economic Zones were created to

A. Boost manufacturing
B. Augment exports
C. Generate employment

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 D. All of the above
Answer:D

15. The geographically distributed area or zone where the economic laws are more
liberal as compared to other parts of the country is called
A. EOU
B. SEZ
C. AEZ
D. FTZ
Answer:B

16. The importability or otherwise of a specified commodity into India is

determined by
A. Foreign trade (Regulation ) Rules Act
B. Foreign Trade (Regulation and Development) Act
C. Imports and Exports (Control) Act
D. Foreign Trade (Exemption) Rules Act
Answer:B

17. Which of the following is an example of intellectual property ?

A. Trademarks
B. Textiles
C. Electronics equipment
D. Computer hardware
Answer:A

18. The period of time permitted for the fulfillment of the export obligation under
EPCG is
A. 5 years
B. 8 years
C. 7 years
D. 10 years
Answer:B

19. The notice for claim under the carriage of goods by rail is to be made within
A. 3 months

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 B. 4 months
C. 5 months
D. 6 months
Answer:D

20. The area where the goods are permitted to be imported and re-exported
without any processing in the same form is called
A. Export Processing Zone
B. Free Trade Zone
C. Special Economic Zone
D. Agri Export Zone
Answer:B

21. What is the mode adopted by EIC for the purpose of inspection of good
A. Consignment to consignment
B. in process quality
C. Self certification
D. All of the above.
Answer:D

22. Is arbitration a vehicle of dispute resolution in which parties to a contract

selects a neutral arbitrator (or a panel of arbitrators) to present their dispute for a
legally binding ruling.
A. Yes
B. No
C. Can’t say
D. all
Answer:A

23. An OBU set up in SEZ by a bank in India is subject to

A. No Capital Adequacy Norms
B. No prudential Accounting Norms
C. No CRR/SLR stipulation of RBI
D. No restrictions from Govt of India
Answer:D

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24. The export promotion scheme that enables the post export replenishment of
duty on inputs used in the export product is
A. Replenishment licence.
B. Duty remission scheme
C. Duty exemption scheme
D. Duty free replenishment certificate
Answer:B

25. The export promotion scheme with the objective to neutralize the incidence of
Customs duty on the import content of the export product is
A. Export Promotion Capital Goods
B. Export Credit Guarantee
C. Duty Free Replenishment
D. Duty Entitlement Passbook
Answer:D

26. "Services" include all the -------- tradable services covered under the General
Agreement on Trade in Services where payments for such services are received in
free foreign exchange
A. 161
B. 150
C. 139
D. none
Answer:A

27. The --------are also eligible for the facility of EOU/EPZ/ EHTP/STP scheme.
A. service providers
B. CHA
C. Bankers
D. none
Answer:A

28. If the CIF value of the consignment imported does not exceed----------------, the
relative Bill of Entry is required to be filed by the registered courier service.
A. Rs.200000
B. Rs.300000

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 C. Rs.100000
D. all
Answer:C

29. If the CIF value is ----------------or more, importers are to file separate B/E as in
the case of other imports
A. Rs.100000
B. Rs.200000
C. Rs.300000
D. all
Answer:A

30. Import of -----------------is allowed without payment of Customs duty under the
Baggage Rules, 1994.
A. Medical Equipment by Indian Doctors and Professionals
B. Arms & ammunition
C. Personal use goods
D. none
Answer:A

31. Import of free gifts and relief supplies by certain organizations/institutions e.g.
Indian Red Cross Society, National Defense Fund is allowed
A. False
B. True
C. all
D. none
Answer:B

32. Bona fide technical and trade samples of items, even those in the restricted in
ITC(HS)Classifications of Export and Import items is allowed without a license for
a value not more than Rs. 1 lakh(CIF)
A. True
B. False
C. all
D. none
Answer:A

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33. Duty Drawback is given only, if the in house cost of production is -------in
relation to international price.
A. Higher
B. Lower
C. Same
D. none
Answer:A

34. The risk of payment is least under the LC, if a bank ---------the payments by
confirming the LC.
A. Makes payment
B. Guarantees
C. all
D. none
Answer:B

35. For setting up a manufacturing, trading or service units in SEZ, ------------

copies of consolidated application & project proposal in the format prescribed at
'Form F' of the SEZ Rules, 2006 to be submitted to the Development
Commissioner (DC) of the SEZ.
A. 10
B. 05
C. 50
D. All above
Answer:B

36. The New Foreign Trade Policy for the period 2015 to 2020 was announced by
the government on the-------------
A. 1st of April 2015
B. 1st of June 2015
C. all
D. none
Answer:A

37. MEIS scheme actually is-

A. Marine Export from India scheme
B. Mining products Export from India scheme

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 C. Merchandise Exports from India Scheme
D. all
Answer:C

38. Specific export requirements under the EPCG scheme have been reduced from
90% of normal amount consideration to --------------of the normal amount
consideration.
A. 95%
B. 50%
C. 75%
D. all
Answer:C

39. EOUs have been ---------------facility to set up Warehouses near the port of
export.
A. Allowed
B. Disallowed
C. all
D. none
Answer:A

40. The prevailing Pre shipment Interest rate is-------------.

A. 14%
B. 18%
C. 10%
D. none
Answer:A

41. The current Post shipment Interest rate is -------------

A. 14%
B. 18%
C. 15%
D. none
Answer:C

42. Insurance for domestic business is same as for exports.

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 A. Yes
B. No
C. Can’t say
D. all
Answer:A

43. Exporter has to bear most of commercial risk.

A. Yes
B. No
C. Can’t say
D. all
Answer:A

44. FEMA is civil law unlike FERA.

A. No
B. Can’t say
C. Yes
D. all
Answer:C

45. EOU can be located anywhere in the country.

A. No
B. Can’t say
C. Yes
D. all
Answer:C

46. There is no min limit for setting up EOU.

A. No
B. Yes
C. Can’t say
D. all
Answer:B

47. We can sell 80 % of the produce in the DTA from an EOU.

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 A. Yes
B. No
C. Can’t say
D. all
Answer:A

48. License is required for imports for SEZ units.

A. Yes
B. No
C. Can’t say
D. all
Answer:A

49. Trade Related Investment Measures (TRIMS) doesn’t apply for

A. Measures that affect trade in goods.
B. Measures that lead to restrictions on quantities.
C. Discouraging measures that limit a company’s imports.
D. Discouraging measures that limit a company’s exports.
Answer:B

50. General Agreement on Trade in Services will not be applicable to

A. Services supplied from one country to another – cross border supply
B. Transaction of goods across the border – Export Import
C. Individuals traveling from own country to supply services in another – presence of natural
persons.
D. Consumers/firms making use of a service in another country – consumption abroad.
Answer:B

51. As a part of WTO guidelines, Agreement on Agriculture (AOA) doesn’t

consider
A. Direct payments to farmers are permitted.
B. Indirect assistance and support to farmers including R & D support by govt. are not permitted.
C. Domestic policies which directly effect on production and trade have to be cut back.
D. Least developed countries do not need to make any cuts.
Answer:A

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52. The limit of holdings by Individual Foreign Institutional Investors in a
Company has been raised from 5 to 10 % of the company’s shares, while the
aggregate limit has been increased from 24 to 34 %.
A. True
B. False
C. all
D. none
Answer:A

53. Quantitative restrictions refer to limit set by countries to curb

A. Imports
B. Exports
C. Imports & exports
D. None of the above
Answer:C

54. A Most Favored nation status doesn’t necessarily refer to

A. Same and equal economic treatment
B. Non-discriminatory treatment
C. Same tariff rates applicable
D. Uniform civil code
Answer:D

55. The world trade organization was formed in the year _________ with GATT as
it basis.
A. 1993
B. 1994
C. 1995
D. 1996
Answer:C

56. Power distance Index (PDI) of 77 compared to a world average of 56.5 for India
indicates
A. High level of inequality of power and wealth within the society
B. Low level of inequality of power and wealth within the society
C. High level of Political corruption

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 D. Low level of Human development Index
Answer:A

57. Specific cultural dimensions that does not have a significant impact on cross-
national business interactions is
A. Hofstede’s five cultural dimensions
B. Monochromatic vs polychromatic tune
C. Communication
D. Geography
Answer:D

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