Professional Documents
Culture Documents
MCQ On Exports
MCQ On Exports
6. A person resident in India whilegoing out of India , may take out of India (other than
from Nepal and Bhutan), the maximum amount of INR currency notes:
a) Maximum 50000
b) Maximum 100000
c) Maximum 10000
d) Maximum 25000
7. Which statement about third party payment forExport transactions are not correct:
c. The Invoice should contain a narration that the related payment has to be made
to the (named) third party. Exporter should declare this in,.Export Declaration
form.
d. None of these
8. All trade transactions with which ACU member country, can be settled in any
permitted currency in addition to ACU mechanism.
a) Iran
b) Myanmar
c) Nepal
d) Bangladesh
9. In cases where an advance payment is received against exports, shipment of goods
has to be made within what time from the date of receipt of advance?
a) 6 months
b) 1 year
StateBank Institute of Credit and Risk management
c) 2 year
d) None
10. Up to what period extension to realize proceeds can be grantedat a time by AD
category I bank::
a) 1 year
b) 2 year
c) 6 month
d) None of these
11. Exports are governed by following guidelines:
a) Foregn Trade Policy
b) FEMA Act 1999
c) Foreign Exchange Management (Current Account Transfer) Rules 2000
d) All the above.
12. EDPMS stands for :
a) Export Data Processing Monitoring System
b) Export Delivery Payment Management System
c) Export Impoert Data Payment Management System
d) Export Delivery Processing Management System
13. An exporter may write off maximum up to
a) 5% of total exports proceeds realized during previous calendar year
b) 10% of total exports proceeds realized during previous calendar year
c) 15% of total exports proceeds realized during previous calendar year
d) None
14. The facility of Export collection through Online Payment Gateway Service
Providers(OPGSPs )is allowed up to what amount.
a) USD 20000
b) USD 10000
c) USD 40000
5) USD 50000.
15. Which is not a Permitted debits in the OPGSP export Collection account: .
a) Repatriationto exportersaccounts
16. Which is not Permitted credits in the OPGSP export collection account.:
a) Collection from overseas importers against Online Purchases from Indian exporters
d) both b) and c)
17.India’s Trade with which ACU member country is settled outside ACU mechanism:
a) Pakistan
b)Bangladesh
c) Iran
d) Shri lanka.
a) All export contracts and invoices shall be denominated either in freely convertible
currency or Indian rupees but export proceeds shall be realized in freely convertible
currency.
b) However, export proceeds against specific exports may also be realized in rupees,
provided it is through a freely convertible Vostro account of a non-resident bank
StateBank Institute of Credit and Risk management
situated in any country other than a member country of Asian Clearing Union (ACU)
or Nepal or Bhutan.”
19. It is obligatory on the part of the exporter to realize and repatriate the full
value of goods /software / services to India within a stipulated period from the date of
export. This period is:
a) 6 months
b) 9 months
c) 12 months
d) 9 moths for all exports except export to a ware house outside India.
a) the Asian Monetary Unit (AMU) shall be denominated as ‘ACU Dollar’ and ‘ACU
Euro’ which shall be equivalent in value to one US Dollar and one Euro, respectively.
b) AD Category – I banks are allowed to open and maintain ACU Dollar and ACU Euro
accounts with their correspondent banks in other participating countries.
c) All eligible payments are not required to be settled by the concerned banks through
these accounts.
d) Relaxation from ACU Mechanism- Indo-Myanmar Trade - Trade transactions with
Myanmar can be settled in any freely convertible currency in addition to the ACU
mechanism.
c) All categories of foreign exchange earners are allowed to credit up to 75% of their
a) All imports and exports under the arrangement should be at international prices in
conformity with the Foreign Trade Policy and Foreign Exchange Management Act,
1999 and the Rules and Regulations made there under.
c) Fund based/or non-fund based facilities would be permitted against the balances
in the Escrow Account.
d)Application for permission for opening an Escrow Account may be made by the
overseas exporter / organization through his / their AD Category – I bank to the
Regional Office concerned of the Reserve Bank.
a) AD banks may take their own business decision to enter into export factoring
arrangement on non-recourse basis. They should ensure that their client is not
over financed.The invoices purchased should represent genuine trade
invoices.
b) In case the export financing has not been done by the Export Factor, the
Export Factor may pass on the net value to the financing bank/ Institution after
realising the export proceeds.
c) AD bank, being the Export Factor, may not have an arrangement with the
Import Factor for credit evaluation & collection of payment.
d) Notation should be made on the invoice that importer has to make payment
to the Import Factor.
a)Customs shall certify the value declared and give running serial number on the two
copies of Export Declaration Form (EDF), submitted by exporter at Non- Electronic
Data Interchange (EDI) port.
b) Customs shall retain the original EDF for transmission to the Reserve Bank and
return the duplicate copy to the exporter.
c) At the time of shipment of goods, exporters shall submit the duplicate copy of the
EDF to Customs. After examining the goods, Customs shall certify the quantity in the
form and return it to the exporter for submission to AD for negotiation or collection of
export bills.
e)Within 30 days from the date of export, exporter shall lodge the duplicate copy
together with relative shipping documents and an extra copy of the invoice to the
AD named in the EDF.
a)Postal Authorities shall allow export of goods by post only if the original copy of the
EDF has been countersigned by an AD.
b) AD shall countersign EDF after ensuring that the parcel has been addressed
to their branch or correspondent bank in the country of import and return the original
copy to the exporter, who shall then submit the EDF to the post office with the parcel.
c) The duplicate copy of EDF shall be retained by the AD to whom the exporter shall
submit relevant documents together with an extra copy of invoice for
negotiation/collection, within the prescribed period of 21 days. The concerned
overseas branch or correspondent shall be instructed to deliver the parcel to
consignee against payment or acceptance of relative bill.
d) None of these
26. Realization of export proceeds in respect of export of goods / software from third
party should be duly declared by the exporter in the appropriate declaration form.
a)True
b)false
27. In case Authorized Dealer banks are required to issue bank guarantee (BG) /
Stand by Letter of Credit (SBLC) for export performance, then the issuance
should be rigorously evaluated as any other credit proposal and ensure : .
c) BG / SBLC issued from India in favor of overseas buyer should not be discounted
by the overseas branch / subsidiary of bank in India
d) All the above
28. AD Category- I banks may allow exporters to receive advance payment for
export of goods which would take more than one year to manufacture and ship and
where the ‘export agreement’ provides for shipment of goods extending beyond the
period of one year from the date of receipt of advance payment subject to the certain
conditions. Which of the below is not correct?
a) The KYC and due diligence exercise has been done by the AD Category – I bank
for the overseas buyer;
b) The AD Category-I bank should ensure that export advance received by the
exporter should be utilized to execute export and not for any other purpose i.e., the
transaction is a bonafide transaction;
c) Progress payment, if any, should be received directly from the overseas buyer
strictly in terms of the contract;
d) The rate of interest, if any, payable on the advance payment shall not exceed
London Inter-Bank Offered Rate (LIBOR) + 200 basis points.
29. Which is not a requirements for permission to Set up of Offices abroad and
acquisition of immovable property for Overseas offices
a)At the time of setting up of the office, AD Category – I banks may allow
remittances towards initial expenses up to fifteen per cent of the average annual
sales/income or turnover during the last two financial years or up to twenty per cent of
the net worth, whichever is higher.
(a) When goods have been exported on consignment basis, the AD Category-I bank,
while forwarding shipping documents to his overseas branch/ correspondent, should
instruct the latter to deliver them only against trust receipt/undertaking to deliver sale
proceeds by a specified date within the period prescribed for realization of proceeds
of the export.
(b) The agents/consignees may deduct from sale proceeds of the goods expenses
normally incurred towards receipt, storage and sale of the goods, such as landing
charges, warehouse rent, handling charges, etc. and remit the net proceeds to the
exporter.
(c) The account sales received from the Agent/Consignee should be verified by the
AD Category – I banks. Deductions in Account Sales should be supported by
bills/receipts in original except in case of petty items like postage/cable charges,
stamp duty, etc.
(d) In case the goods are exported on consignment basis, freight and marine
insurance may be arranged out of India.
a)Applicant’s export outstanding does not exceed 5 per cent of exports made during
the previous financial year.
b) Applicant has a minimum export turnover of USD 100,000/- during the last
financial year.
(c) All transactions should be routed through the designated branch of the
AD Banks.
d)The above permission may be granted to the exporters initially for a period of two
year.
32) If, after a bill has been negotiated or sent for collection, its amount is to be
reduced for any reason, AD Category – I banks may approve such reduction, if
satisfied about genuineness of the request, provided:
stipulations
c) The exporter is not on the exporters’ caution list of the Reserve Bank,
a) The export transactions covered by the invoices are not under investigation by
Directorate of Enforcement / Central Bureau of Investigation or other investigating
agencies,
b) The AD Category – I bank is satisfied that the exporter has not been able to realize
export proceeds for reasons beyond his control,
34. Which is not a condition for Set-off of export receivables against import payables
c) Payment for the import is still outstanding in the books of the importer.
d)None
.
35. Which is not correct about Exporters’ Caution List
b) The exporters would be caution listed if any shipping bill against them remains
open for more than two years in EDPMS provided no extension is granted by AD
Category –I bank / RBI. Date of shipment will be considered for reckoning the
realisation period.
c) Once related bills are realised and closed or extension for realisation is granted,
the exporter will automatically be de-caution listed.
d) None of these.
36. While permitting refund of export proceeds, AD Category – I banks are required
to:
a)Exercise due diligence regarding the track record of the exporter
c)Obtain from the exporter a certificate issued by DGFT / Custom authorities that no
incentives have been availed by the exporter against the relevant export or the
proportionate incentives availed, if any, for the relevant export have been surrendered