SCMT 3643 Exam 3 Questions AND Correct Answers
(Export Clearance Documents) - ✔✔- Documentation may be sensitive e.g. used for military purposes
1.) Electronic Export Info
--Exports > $2500 in value
(Shipping) - ✔✔1.) Packing list
-- Always accompanies a shipment
--Contains a description of the cargoes
2.) Shipper's Letter of Instruction
--May be delivered to the shipping line
--Outlines specific instructions
--E.g. Where the cargo is to be stowed and at what temp.
3.) Manifest
--Created by ocean/air carrier
--Outlines all cargo aboard (ownership, point of origin, point of destination, etc.)
--Shared with port/Airport authorities and gov.
--US requires manifest to be submitted electronically 24 hrs beforehand
4.) Bill of Lading:
--Contract of carriage for all shipments between shipper and owner
--Receipt of goods
--Certificate of title (who owns the goods)
--Clean if no damage, soiled if cargo is damaged
Bill of Lading - ✔✔The carrier issues this document
, Only a company with a copy of the Bill of Lading can receive the goods. The carrier gives it to the
exporter => Confirming bank => Issuing bank => Importer
Money transferred in reverse
Cash in advance: - ✔✔i) A percent of the pay is sent in advance as a guarantee for the seller
ii) May be used to support production expenses.
iii) Exporter might require the pay to be sent before arrival due to uncertainty in the country of import.
CFR: Cost & Freight - ✔✔a. Only used for ocean transport
b. Export is responsible for:
1. All costs under FOB
2. Paying for the ocean carriage
c. Importer responsible for all other costs
1. Transportation in the country of import
2. Customs charges
d. Delivery takes place when goods are loaded on the vessel
CIF: Cost, Insurance, & Freight - ✔✔e. Only used for ocean transport
f. Export is responsible for:
1. All costs associated with CFR
2. Cost of marine insurance
g. Importer responsible for all other costs
(Export Clearance Documents) - ✔✔- Documentation may be sensitive e.g. used for military purposes
1.) Electronic Export Info
--Exports > $2500 in value
(Shipping) - ✔✔1.) Packing list
-- Always accompanies a shipment
--Contains a description of the cargoes
2.) Shipper's Letter of Instruction
--May be delivered to the shipping line
--Outlines specific instructions
--E.g. Where the cargo is to be stowed and at what temp.
3.) Manifest
--Created by ocean/air carrier
--Outlines all cargo aboard (ownership, point of origin, point of destination, etc.)
--Shared with port/Airport authorities and gov.
--US requires manifest to be submitted electronically 24 hrs beforehand
4.) Bill of Lading:
--Contract of carriage for all shipments between shipper and owner
--Receipt of goods
--Certificate of title (who owns the goods)
--Clean if no damage, soiled if cargo is damaged
Bill of Lading - ✔✔The carrier issues this document
, Only a company with a copy of the Bill of Lading can receive the goods. The carrier gives it to the
exporter => Confirming bank => Issuing bank => Importer
Money transferred in reverse
Cash in advance: - ✔✔i) A percent of the pay is sent in advance as a guarantee for the seller
ii) May be used to support production expenses.
iii) Exporter might require the pay to be sent before arrival due to uncertainty in the country of import.
CFR: Cost & Freight - ✔✔a. Only used for ocean transport
b. Export is responsible for:
1. All costs under FOB
2. Paying for the ocean carriage
c. Importer responsible for all other costs
1. Transportation in the country of import
2. Customs charges
d. Delivery takes place when goods are loaded on the vessel
CIF: Cost, Insurance, & Freight - ✔✔e. Only used for ocean transport
f. Export is responsible for:
1. All costs associated with CFR
2. Cost of marine insurance
g. Importer responsible for all other costs
