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1. Government provides information on export opportunities, procedures and benefits,
2. Train people for producing goods that can be exported.

The charges that an importer/exporter need to pay for using the facilities of the dock such as loading/unloading goods in ship, transporting them to a specific place in dock, storing them, equipment used for these activities, etc. are all included in dock charges.

So that RBI can come to know the foreign money that comes to our country and the foreign currency that goes out of our country.

Placing the indent or order:

• The order that the importer places for importing the goods is called ‘indent’. He places the indent to the exporter.
• The importer first collects information of different manufacturers and exporters of the exporting country. He collects information regarding the details of goods, price and other conditions and then gives the indent to the exporter he selects.
• Indent contains details regarding quantity of goods, price, packaging, insurance, name of transporter, etc.

Non-financial facilities:
Exporters are also provided several non-financial facilities and services for motivation. They are:

• Provide information on export opportunities, procedures and benefits.
• Train people for producing products that can be worth exporting.
• Arranging competitions among exporters and rewarding highest exporter.
• Provide information about export market i.e. international market.
• To lock-out or create strike in factories that produce export items illegally

Correct option is (A) Assisting exporter for same day clearance of his export-bill

Financial and economic encouragement reward:
Exporters are provided several financial and economic benefits to encourage them for producing and/or exporting. These encouragements include:

• Give some pre-decided reward directly to the exporter.
• Give exemption or collect very less sales tax and income tax on exported products.
• Give partial or full exemption of income-tax for income earned through export. Provide land, raw material, electricity, equipment, etc. at cheaper rates for producing goods/services for export.

Correct option is (D) Establishment of economic zones

If the captain finds that the goods are not packed properly and hence not suitable for transportation he makes a mark in the mate’s receipt. Such receipt is called ‘foul receipt’ or ‘dirty chit’.

Correct option is (A) Export trade

Incentives for export trade:
1. Trade agreements:

• State or central government enters into trade agreements with various countries. Under these agreements they agree to trade several products/services with each other.
• Such trade agreements boost exporters to increase their export business.

2. Financial and economic encouragement reward:

• Exporters are provided several financial and economic benefits to encourage them for producing and/or exporting. These encouragements include:
• Give some pre-decided reward directly to the exporter.
• Give exemption or collect very less sales tax and income tax on exported products.
• Give partial or full exemption of income-tax for income earned through export. Provide land, raw material, electricity, equipment, etc. at cheaper rates for producing goods/services for export.

3. Collective and systematic economic encouragement:

• Under this system if an exporter is able to export a pre-decided quantity of products than he is allowed to import products equivalent to the foreign exchange earned from export.
• The exporter who guarantees to export the said quantity is given several benefits as a form of encouragement. These benefits are:
• Provide land at subsidized rates for producing such items that can be exported.
• Assistance in setting up factories for producing products that can be exported. Encouragement to establish factories in free trade zones i.e. trade zones (areas) which are exempted from taxes and regulations. Oblige to export total production or as per pre-decided ratio.

4. Financial facilities and services:

• Several financial facilities and services are provided to exporters that encourage them. They are:
• Make arrangement so that the exporters receive export-bill (a document needed by customs department) on the same day of export.
• Provide ways to protect exporters against fluctuations that occurs in exchange rate of foreign currency.
• Making arrangements so that the importer or importing country can easily import goods exported to them.
• Provide services as guarantor of the importer after assessing the financial soundness of the importer.

5. Non-financial facilities:

• Exporters are also provided several non-financial facilities and services for motivation. They are:
• Provide information on export opportunities, procedures and benefits.
• Train people for producing products that can be worth exporting.
• Arranging competitions among exporters and rewarding highest exporter.
• Provide information about export market i.e. international market.
• To lock-out or create strike in factories that produce export items illegally.

6. Special economic zone (SEZ):

• A special economic zone (SEZ) refers to certain fix area of a country which enjoys special economic regulations and liberal economic laws compared to other parts of the country.
• In 2005, government of India passed law for SEZ in the parliament and brought it in force from 10th February, 2006.
• Special economic zones contain several types of zones like:
  (a) Export processing zone
  (b) Free trade zone (FTZ)
  (c) Free ports
  (d) Industrial zone
• SEZ is set-up with the aim of attracting direct local and foreign capital investment.
• Under SEZ the government provides part or full exemption of custom duty, central excise, service tax, central sales tax, security transaction tax, etc. on products produced in SEZ.

7. Export processing zone:

Indian government has established export processing zones or say free processing zones to encourage export trade. In such zones exporters can import goods, re¬process them if needed, manufacture goods and export them without interference of custom authorities. This helps in bringing more foreign earnings to our country.

• Excise duties, financial transaction regulations and some labour laws are liberal in these zones.
• Government assures people that it will provide all basic facilities such as roads, electricity, water, communication, transportation, facility to procure high quality raw material, etc. to industries set-up in such zones.
• Government also provides information on export procedures, international market, demand of products for export, political conditions favorable export, etc. to people interested in export business.
• Under its economic policy India has developed various free trade zones (FTZ) in places like Kandla, Santa Cruz (Mumbai), Falta (West Bengal), Noida, (Cochin, Chennai, Vishakhapattannam, Kosindra, (Near Dwarka) and Dahej (near Bharuch), etc.

An incentive or say benefit that a country provides to an exporter to encourage him export goods or services is called incentive for export trade.

Correct option is (B) Documents against payment

A bill of lading is a legal document between the shipper (i.e. exporter) of the goods and the carrier i.e. the transporter. If contains details like quantity of goods, destination, etc. It is issued by the carrier to the exporter.

When an exporter instructs a shipping company to deliver goods to the importer the shipping company provides a copy called ‘shipping order’ to the exporter.

If the exporter wants to rent whole ship for sending the goods it is called ‘charter’. The agreement between the shipping company and the exporter to rent the whole ship is called Charter party agreement’.

A country producing excess can export to other countries and prevent price of that product from falling below a level in local market. In case if the price of a product/service rises drastically, the country can import it to control its price.

No country in this world is self-reliant. Each country needs other countries to share its resources, products and services. This gives rise to international trade.

• International trade activities exist since ancient time. With time, science and technology advanced to unprecedented heights.
• As a result countries started producing a very large number of goods and services. These countries then kept on searching for countries where they could sell their products.
• With the establishment of various international trade organizations countries came closer and traded freely.
• Moreover, due to fast transportation, internet and e-commerce trade became much faster and countries came much closer.
• Now we can trade with any country without even moving out of our offices. The entire world is now connected with each other and seems so close as if it is a small village.
• Hence, it is rightly said world – a global village.

There are two types of documentary bills. They are – (i) D/A i.e. Documents against acceptance bill and (ii) D/P Bill i.e. Documents against payment bill.

Various documents such as bill of lading, invoice, consular invoice, shipping order, insurance policy of goods, etc. sent to the foreign exchange bank of importer by the exporter are together called documentary bill.

Less developed countries lack specialized scientific technology research and other resources. These countries can import technology and processes, modern administrative methods, research knowledge, advanced products, etc. and develop themselves.

During natural calamities like flood, drought, tsunami, etc. a country can get food grains, medicines, etc. from other countries either free of cost or at very nominal prices. This becomes quite helpful for the victim country.

The shipping company prepares three copies of bill of lading. It keeps one copy and gives the other two to the exporter. The exporter sends the third copy to the importer.

A place where goods are kept once they arrive is called a dock.

Payment of dock charges:

• A place where the goods are kept once they arrive is called a dock. Since goods of importer are unloaded from the ship and handled and stored by dock employees the importer needs to pay dock charge for theses dock services he received. Dock charges also include charges on equipment and facilities that were used for the goods in the dock.
• Dock charge is to be paid irrespective of the mode of arrival of goods i.e. airway, waterway, roadway or railway.
• After paying the dock charges the importer gets a dock receipt.

Obtain possession of goods:

• After completing all the formalities the importer can then obtain possession of the goods.
• The importer needs to take the goods from the bonded warehouse where they are stored by the customs department within the specified time. If the importer does not collect the goods on time, he will have to pay demurrage along with the additional rent.