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What is the purpose of a letter of credit in international trade?
What is the purpose of a letter of credit in international trade?
- To retire important documents after shipment of goods
- To arrange for finance in advance
- To receive shipment advice from the exporter
- To guarantee payment on behalf of the importer (correct)
Why does the importer have to instruct the bank about the documents to be collected from the exporter?
Why does the importer have to instruct the bank about the documents to be collected from the exporter?
- To arrange for finance in advance
- To ensure the shipment is advice received promptly
- To issue a letter of credit on behalf of the importer
- To confirm the financial soundness of the importer (correct)
What is the purpose of arranging finance in advance for an importer?
What is the purpose of arranging finance in advance for an importer?
- To avoid uncleared penalties at the port (correct)
- To retire important documents after shipment of goods
- To ensure the arrival of goods as per specifications
- To receive shipment advice from the exporter
What does the 'receipt of shipment advice' typically include?
What does the 'receipt of shipment advice' typically include?
What important documents does the exporter submit to their banker after shipping goods?
What important documents does the exporter submit to their banker after shipping goods?
What is the document called that the importer prepares after the goods reach the importer's country?
What is the document called that the importer prepares after the goods reach the importer's country?
Who is responsible for inspecting the goods based on the details in the Bill of Entry?
Who is responsible for inspecting the goods based on the details in the Bill of Entry?
Where are goods stored if the importer fails to pay the import duty?
Where are goods stored if the importer fails to pay the import duty?
What happens if the appraiser officer is satisfied with the information in the Bill of Entry?
What happens if the appraiser officer is satisfied with the information in the Bill of Entry?
Who instructs the dock officer to receive the goods when they arrive in the importer's country?
Who instructs the dock officer to receive the goods when they arrive in the importer's country?
What document contains details of imported goods and is recorded by the dock officer?
What document contains details of imported goods and is recorded by the dock officer?
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