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FSM621S- FORWARDING AND SHIPPING MANAGEMENT - 1ST OPP - NOV 2022 |
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nAmI BI AunIVERSITY
OF SCIEn CE Ano TECHn OLOGY
FACULTY OF COMMERCE, HUMAN SCIENCE AND EDUCATION
DEPARTMENTOF MARKETING, LOGISTICSAND SPORTSMANAGEMENT
QUALIFICATION: BACHELOROF TRANSPORTMANAGEMENT & BACHELOROF LOGISTICS
AND SUPPYCHAIN MANAGEMENT
QUALIFICATIONCODE: 07BTRA & 07BLSC LEVEL:6
COURSECODE:FSM621S
COURSENAME: FORWARDING AND SHIPPING
MANAGEMENT
SESSION:NOVEMBER 2022
DURATION: 3 HOURS
PAPER: THEORY
MARKS: 100
FIRST OPPORTUNITY EXAMINATION PAPER
EXAMINER{S) Mr. JACINTO SILVA (PM)
Ms. ESTERJESAYA(FM)
Ms. EMILIA SALOMO (DI)
MODERATOR: Ms. SELMA KAMBONDE
INSTRUCTIONS
1. Answer ALL the questions
2. Read all the questions carefully before answering.
3. Number the answers clearly
THIS QUESTION PAPERCONSISTSOF 7 PAGES{Including this front page)
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QUESTION 1
Multiple Choice Questions [1*25 = 25 Marks]
Choose the correct answer for the below.
1.
The Namibia Revenue Agency (NamRA)
charges customs duty based on the value of
the goods imported in the country, this
practice is called?
A. Ad Valorem
B. ASYCUDA
C. SADS00
D. None of the above
2.
Which of the following is NOT a risk in
ocean shipping?
A. Sinking
B. Jettison
C. Hijacking
D. None of the Mentioned
3.
Which of the below is a composition of
a transport network?
A. Terminals and connections
B. Links and connections
C. Nodes and connections
D. None of the mentioned
4.
A client is shipping clothes using air
transport. Upon booking the freight space;
DHL informed him that the consignment is
charged according to a dimensional weight
3,975, the actual weight is 1700 pounds.
Which of the following is not a reason why
the dimensional weight is set high?
A. To penalize those who ship light
cartoons
B. To make sure that the shippers pay for
an inefficient use of space
C. To ensure plane's capacity in terms of
weight is entirely paid for.
D. None of the mentioned
5.
Which of the below has a similar role
to that of a non-vessel operating in ocean
freight.
A. Forwarder; exporter
B. Forwarder; carrier
C. Consolidator; exporter
D. Consolidator; Carrier
6.
Which of the following serves the same
purpose as an air waybill?
A. Air consignment note
B. Air consignees note
C. Air carrier's note
D. None of the mentioned
7.
Bill of lading is issued by the
A. Captain of the vessel
B. Shipping company
C. Customs authority
D. Consignor
8.
Which of the following statements best
describes a general average loss:
A. Goods are totally damaged
B. Goods are subjected to constructive
total loss
C. Goods are sacrificed as part of cargo
owner's contributing for the general loss
of others
D. None of the mentioned
9.
Which of the following are the two
types of marine cargo insurance policy:
A. Perils-only policy and all risks policy
B. Perils-only policy and marine-risk policy
C. Marine-risk policy and all-risks policy
D. Marine-risk policy and perils-only policy
10.
Today's integration of the world
economy is driven by advances in ___ _,
___ __:and _____
toreduce
obstacles to the flow of trade and capital.
A. Communications, trade agreement, and
government's policy.
B. ,Communications, information
technology and trade agreements
C. Communications, information
technology, and governments policy
D. Trade agreements, information
technology, and government's policy
11.
What main benefits does a shipowner
obtain by having a general average
absorption clause in his hull policy?
A. He can recover general average sacrifice
without incurring the deductible.
B. His general average contributions are a
separate limit of cover.
C. He can recover the total general
average sacrifice subject to an agreed
limit.
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D. It offers a reduction in premium as the
shipowner is taking more risk himself.
12.
How often are lncoterms revised to
represent contemporary commercial
practice?
A. Every 2 years
B. Every 5 years
C. Every 7 years
D. Every 10 years
13.
What is the main task of customs
within the maritime industry?
A. Collecting and safeguarding customs
duties and for controlling the flow of
goods including animals, personal
effects, and hazardous items in and out
of a country.
B. Documents verification
C. Check if the goods are stolen or not safe
D. The protection of the goods on the
frontiers
14.
A commercial invoice is issued by__ .
A. Exporter
B. Exporter's bank
C. Importer
D. Importers bank
15.
Which of the following lncoterms is
best described by a scenario where the
seller undertakes to place the goods on
board the ship designated by the buyer.
A. FAS
B. CIS
C. FOB
D. CIP
16.
Which of the following statement is a
characteristic of Group E terms:
A. Risk is not Transferred to the buyer if
damage or loss is attributed to the
failure of delivery
B. Risk is not transferred to the seller if
damage or loss is attributed to the
failure of delivery
C. The seller bears all risks and charges
pertaining to pre-shipment inspection,
export/import licenses, and customs
duties needed for exploration.
D. All of the mentioned
17.
Select which is the reason why Namibia
trades with other nations
A. Trading increases the opportunity for
Namibia to accumulate wealth.
B. Some nations prefer to produce one
thing while others produce other things.
C. Some goods are cheaper in some
nations compared to others.
D. Resources are not equally distributed
among all trading nations.
18.
The agreement between the charterer
and the shipowner in respect of the
chartering of a ship is called the
A. Charter register
B. Charter party
C. Charter agreement
D. Charter contract
19.
The destination of the load/where the
load is delivered, is known as_____
?
A. Shipper
B. Carrier
C. Consignee
D. Customer
20.
What is the other term for
international commercial term?
A. Ecommterm
B. Netterm
C. Ecoterm
D. lncoterm
21.
A tariff is
A. A tax on imports only
B. A tax on exports only
C. A tax on either imports or exports
D. A luxury tax
22.
Which of the following International
Organization has designed and developed
the Harmonized Commodity Description
and Coding System?
A. World Customs Organization
B. World Trade Organization
C. International Customs Organization
D. United Nations Customs Organization
23.
The HS Coding System is subjected to
revision periodically after how many years?
A. Five
B. Ten years
C. Never revised
D. Two years
E. Every year
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24.
Documentary drafts require various
shipping documents such as ____
?
A. Bills of lading
B. Insurance certificates
C. Commercial invoices
D. All of the above
25.
Which of the following is not true of a
letter of credit?
A. It is a document
B. Issued by a bank
C. At the request of the exporter
D. The bank agrees to honor a draft drawn
on the importer
Sub-total: 25 Marks
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QUESTION 2
True or False Questions
[1 *15 = 15 Marks]
2.1.
2.2.
2.3.
2.4.
2.5.
2.6.
2.7.
2.8.
2.9.
2.10.
2.11.
2.12.
2.13.
2.14.
2.15.
A quota is a tax levied against a specific good being imported into a country
One of the responsibilities the exporter has is to ensure that the goods are cleared with
customs in the destination country
One of the advantages of shipping goods by truck is that the truck can deliver your good
door to door and the client may receive their goods at their warehouse via truck
Freight forwarders have close co-operation with transporters in every mode which
include road, rail, sea, and air multi-modal and intermodal modes of transportation
The majority of air cargo moves on passenger carrying planes.
A policy under which cargo is insured for specific voyage is called voyage policy
A marine policy which is taken for a fixed period is time policy
Feeder ports are large regional ports, with high volumes of direct large vessels which
also serves the smaller regional ports by transhipping containers.
Expressconsignment air carriers are flights hired by a shipper or freight forwarder for
specific trips.
The free flow of goods in dependent primarily on the availability of transport
documents
A wager policy is suitable for ship owner having only one vessel or having a vessel in
different fleets. The single vessel policy covers the risk of a vessel of the insured.
A company has insurable interests in cargo when loss or damage to it would cause the
Company to suffer a financial loss or certain other kinds of losses
Vessel traffic, truck visit time, and timelessness are key operational indicators of port
Management
A commercial invoice is a written pledge of payment, where an exporter requires the
Importer to pay a certain amount to a named person or bearer.
A certificate of origin is the main document required by the Customs Authority for
Allowing shipment.
QUESTION 3
Sub-total: 15 Marks
Match below the concepts with statements that best defines/describe them? [10 Marks]
e.g., 1. Custom duties- B
Concepts/
Statements
organization
1. Customs duties
a) Multipurpose vessel that can handle different types of
commodities and load types. These vessels are likely to have their
own cranes for loading and unloading cargo.
2. Charter services
b) Represent, promote, and protect the interests of the industry by
participating as advisors or experts in meetings of international
bodies dealing with transportation.
3. Sight draft
c) A financial instrument that ensures that the exporter gets paid and
the importer receives the goods as expected.
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4. WTO
5. FIATA
6. Break-bulk ships
7. Comparative
method
8. Combination
ships
9. Letter of credit
10. Deductive
method
d) A payment term used when the exporter wishes to retain title to
the shipment until it reaches its destination and payment is made.
e) When customs determine value of shipment based on price for
identical or similar goods sold within 90 days of importation.
f) Customs decide the value of the goods based on the value of
similar goods imported in a similar quantity into the same country.
g) An indirect tariff imposed on imports goods when transported
across borders.
h) Assist producers of goods and services, exporters, and importers
conduct their business with different nations.
i) Multipurpose vessels that are capable of transporting shipments
of unusual sizes, unitized on pallets, in bags or in cranes. They tend
to be labour intensive due to loading, unloading and load securing
processes.
j) Provided by ships that are hired for a specific voyage or specified
time.
Sub-total: 10 Marks
STRUCTURED QUESTIONS
QUESTION 4
4.1. Port Operations
[15 Marks]
As part of its National Developmental goals, Namibia has identified logistics has a priority area
and intends to be the regional logistics hub. The envisaged logistics hub is driven by the fact
that Namibia is strategically located to address the trade needs of neighbouring landlocked
countries. The focus of the government of Namibia has since been to invest in the supply of
transport infrastructure to cater for the envisaged demand that would derive from the Namibia
logistics hub project. As a result, the Port of Walvisbay's Bay container terminal was expanded.
You were recently hired as an advisor to the works and transport minister and entrusted to
ensure that the Port of Walvis Bay attains the logistics hub status within the envisaged
timeframe. As the Advisor elaborate with examples any three (3) operational performance
indicators that you will use to evaluate the current operational status quo of the Port of
Walvis Bay.
4.2. Customs Procedures
[15 Marks]
XYZEnterprises is importing electronic goods from Argentina to Namibia, having a value of N$
15,000.00. He will also pay a freight cost of N$ 3,000.00 to the goods from Brazil to Windhoek,
Namibia. According to the Harmonised System, this transaction attracts customs duty of 30%.
The import tax currently charged by Namibia is 16.5%.
A) Calculate the total cost of this transaction
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[5 Marks]
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B) The customer just realised that South Africa is offering the same electronic goods that
he wants to import to Namibia at the value of N$ 18,500.00, and the. transaction has
incoterm DDP. Calculate the savings or extra costs to be incurred if the customer
decides to buy goods from South Africa?
(5 Marks]
C) Advice which supplier should be considered by the customer based on the information
provided above and why?
(5 Marks]
4.3. Transport Documents
(20 marks]
Review the Sea Freight Process Flow Chart below- Related to the Fishing Industry and describe
in your view the main activities of any four (4) key ROLEPLAYERSinvolved in the flow process
during exporting and importing and explain what documentation must be submitted by each
role player?
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END OF QUESTION PAPER
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Sub-total: 50 Marks
Grand Total: 100 Marks
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