IGNOU AED 01 ENGLISH SOLVED ASSIGNMENT 2022-23
Course Code : AED-01
Course Title : Export Procedures & Documentation
Assignment Code : AED-01/TMA/2022-23
Coverage : All Blocks
Q.1 Discuss the institutions providing technical services for the promotion of export in India. Explain the institutional setup for Government policy making and consultation for export promotion in India.
Discuss the institutions providing technical services for the promotion of export
in India. Explain the institutional setup for Government policy making and
consultation for export promotion in India.
GOVERNMENT POLICY MAKING AND
Appropriate government policies are important for successful export effort. In view of the
increasingly important and critical role of foreign trade in economic development, a separate
Ministry of Commerce has been entrusted with the responsibility of promoting India’s interest
in international market. The Department of Commerce, in the Ministry of Commerce has
been made responsible for the external trade of India and all matters connected with the same.
The main functions of the Ministry are the formulation of international commercial policy,
negotiation of trade agreements, formulation of country’s export-import policy and their
implementation. It has created a network of commercial sections in Indian embassies and
high commissions in various countries for export-import trade flows. It has set up an
“Exporters Grievances Redressal Cell” to assist exporters in quick redressal of grievances
Board of Trade : For ensuring a regular consultation, monitoring and review of India’s
foreign trade policies and operations, Government of India have set up a Board of Trade with
representatives from Commerce and other important Ministries, Trade and Industry
Associations, and Export Service Organisations. It is an important national platform for a
regular dialogue between the Government and the trade and industry. The deliberations in
the Board of Trade provide guidelines to the Government for appropriate policy measures for
Cabinet Committee on Exports : “With a view to ensure regular and effective monitoring
of India’s foreign trade performance and related policies, Cabinet Committee on Export has
also been set up
Empowered Committee of Secretaries : For speedier and quicker decision-making, an
Empowered Committee of Secretaries has also been established to assist the Cabinet
Committee on Exports.
Grievances Cell : Grievances Cell has been set up to entertain and monitor disposal of
grievances and suggestions received. It is a cell meant for speedy redressal of genuine
grievances. Grievances Committees headed by Director General of Foreign Trade and head
of concerned Regional Licensing Authority have been constituted in the respective licensing
offices. The Committee also include representatives of FIEO, concerned Export Promotion
Council Commodity board and other departments and organisations.
Director General of Foreign Trade (DGFT) : DGFT is an important office of the Ministry
of Commerce, to help the formulation of India’s Export-Import Policy and
thereof. It has set up regional offices in almost all States and Union Temtories of India.
These offices are known as Regional Licensing Authorities. There is an Export
Commissioner in the DGFT office who functions as a nodal point for all export promotion
schemes. The Regional Licensing offices also act as Export facilitation centres.
Director General, Commercial Intelligence & Statistics (IJGCI&S) : DGCI&S has been
enbusted with the task of compilation and publication of data on India’s Foreign Trade. It
brings out various publications relating to Foreign Trade of India. The major publications are
1. Monthly Statistics of Foreign Trade of India
2. Monthly Press Notes on Foreign Trade
3. Monthly Brochure of Foreign Trade Statistics of India (Principal Commodities and
4. Indian Trade Classification based on Harmonised Commodity Description and Coding
5. Indian Trade Journal
Ministry of Textiles : Ministry of Textiles is another Ministry of Government of India which
is responsible for policy formulation, development, regulation and export promotion of textile
sector including sericulture, jute and handicrafts, etc. It has a separate Export Promotion
Division, offices, advisory boards, development corporations, Export Promotion Councils and
Commodity Boards. The advisory boards have been constituted to advise the government in
the formulation of the overall development programmes in the concerned sector. It also
devises strategy for expanding markets in India and abroad. The four advisory boards are as
1. All India Handloom Board
2. All India Handicrafts Board
3. All India PStates Cell : The cell has been created under Ministry of Commerce. Its functions are to act
as a nodal agency for interacting with State Governments or Union Territories on matters
concerning export or import from the States or Union Temtories. It provides guideline to
State level export organisations. It assists them iq the formation of export plans for each
Development Commissioner, Small Scale Industries Organisation : The Directorate, has
the headquarter in New Delhi and extension centres located in almost all States and Union
Territories. They provide export promotion services almost at the doorsteps of the small scale
industries and cottage units. The important functions are :
i) to help the small scale industries to develop their export capacities
ii) to organise export training programmes
iii) to collect and disseminate information
iv) to help such units in developing their export markets
v) to take up the problems and other issues relate”d to small scale industries owerloom Board
4. Wool Development Board
TECHNICAL AND SPECIALISED SERVICES ASSISTANCE
Export marketing effort at the individual corporate level also needs to be reinforced through a
number of technical and specialised service inputs. These cover important and crucial areas
like packaging, quality control, risk coverage, promotion and finance. Let us now discuss
them in detail.
1 Indian Institute of Packaging
2 Export Inspection Council and Agencies
3 Export Credit and Guarantee Corporation
4 EXIM Bank for Long-term Credit
5 Indian Council of Arbitration
6 Federation of Indian Export Organisations(FIE0)
7 India Trade Rornotion Organisation (ITPO)
8 Indian Institute of Foreign Trade
Q.2 (a) Discuss the duties of an exporter under FOB and CIF contract. Describe the major legal implications of FOB contract.
The duties of exporter under FOB contract:
- i) Supply the contracted goods in conformity with the contract of sale and deliver the goods on board the vessel named by the buyer at the named port of shipment.
- ii) Bear all costs and risks of the goods until such time as they shall have effectively passed the ship’s rail.
iii) Provide at his own expense the customary clean documents in proof of the delivery of the goods.
The duties of the exporter under CIF contract:
- i) Supply the goods in conformity with the contract of sale, arrange at his own expense for the shipping space by the usual route and pay freight charges for the carriage of goods.
- ii) Obtain at his own risk and expense all documentation regarding governmental – authorization necessary for the export of goods.
- iii) Load the goods at his own expense on board the vessel at the port of shipment. He should procure at his own cost in a transferable form a policy of marine insurance for a value equivalent of CIF plus 10 per cent.
- iv) Bear all risks until the goods have effectively crossed the ship’s rail and furnish to the buyer a clean negotiable bill of lading.
2 (b) State the documents required for export. Discuss in detail the features of Commercial invoice and Bill of lading.
Q.3 Comment on the following:
(a) Standard policies of ECGC cover losses of all types of risks.
(b) Credit is a major weapon of international competition but it involves risk.
(c) Exporters and importers are not exposed to any exchange risks.
(d) The role of marketing effort is not crucial in export promotion.
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Q.4 Differentiate between the following:
(a) Pre-shipment finance and Post-shipment finance
(b) Voyage charter and Time charter
(c) Trading house and Star trading house
(d) FOB contract and CIF contract
Q.5 Write a short note on the following:
(a) Forward Contracts
(b) India Trade Promotion Organization
(c) War Perils
(d) EXIM bank
EXIM Bank or Export-Import Bank of India is India’s leading export financing institute that engages in integrating foreign trade and investment with the country’s economic growth. Founded in 1982 by the Government of India, EXIM Bank is a wholly-owned subsidiary of the Indian Government. The current Managing Director is David Rasquinha. It is headquartered in Mumbai, Maharashtra.
EXIM Bank Foundation
The organization was established in 1982 under the Export-Import Bank of India Act 1981 as a purveyor of export credit. R.C. Shah was the bank’s first Chairman and Managing Director.
Latest Context related to EXIM Bank –
The government of India has decided to infuse Rs 1,500 crore capital into the state-owned Export-Import Bank of India in the next financial year. The amount is Rs 200 crore higher than the provision made by the government for the current fiscal. The government has earmarked Rs 1,300 crore capital infusion for the bank.
The capital infusion will give an impetus to new initiatives such as supporting the Indian textile industry, the country’s active foreign policies, changes in the concessional finance scheme, etc.