Multiple Choice Question (MCQ):

Question: Second-hand/ reconditioned capital machineries used in industry shall be importable without any price limit but a certificate from a surveyor enlisted, nominated or appointed by National Board of Revenue to the effect that each machine has at least ……… years economic life except generators or generating sets, must be submitted along with Bill of Lading;

(tick appropriate answer)

a) 5 Years

b) 10 Years

c) 7 Years

Ans: b

Question: Shipment of goods shall be made within ………… months in the case of machinery and spare parts from the date of issuance of LCA Form by Bank

(tick appropriate answer):

a) 9 Moths

b) 17 Months

c) 12 Months

Ans: b

Question: Shipment of goods shall be made within ………… months in the case of all other items from the date of issuance of LcA Form by Bank

(tick appropriate answer):

a) 9 Moths

b) 17 Months

c) 12 Months

Ans: a

Question: L/C may be opened against an indent issued by a local registered Indenter or against a proforma invoice issued by a foreign manufacturer/seller/supplier

a) True

b) False

Ans: a

Question: Bangladeshi professionals living abroad may import their own professional and scientific equipments out of their own foreign exchange earnings abroad without any value ceiling. ln such case, permission or permit from import Control Authority shall not be required.

a) True

b) False

Ans: a

Question: In case of import of goods as warranty replacement and consequently for returning the defective goods to the supplier, approval is to be obtained from

a) The import and export control authority.

b) The Ministry of Commerce

c) The Board of Investment (BOl)

Ans: a

Question: In case of import of generators or generating sets, certificates to the effect that not more than 5 (five) years old from the appropriate authority of exporting country must be submitted.

(tick appropriate answer)

a) 5 Years

b) 10 Years

c) 7 Years

Ans: a

Question: In case of import of ingredients, toxic chemical elements and raw materials, harmful for human health, used in industry, the word must be written visibly on each drum, bottle or packet.

a) ‘Danger’

b) ‘Harmful’

c) ‘poison’

Ans: c

Question: Import of explosives including Trinitrotoluene (TNT) shall not be allowed without prior approval of:

a) Ministry of Defense

b) The Chief Inspector of Explosives of the Ministry of Power, Energy & Mineral Resources.

c) Ministry of Home

Ans: b

Question: A firm or a person having license under Acid Control Act, 2002 (Act No. 1 of 2002)and Acid (lmport, Productlon, Storage, Transport, Sale and use) Control Rules, 2004 will import acid mentioned in Sub-para (9) on commercial basis or for personal use subject to permission of the Ministry of Commerce.

a) The Ministry of Home

b)The Ministry of Information

c) the Ministry of Commerce

Ans: c

Question: ………     ………………………… shall be applicable for import of animals, plants and plant products

a) Quarantine conditions

b) Phytosanitary Certificate

c) Radioactivity Certificate

Ans: a

Question: Item which does not appear in the ……. ……….. shall not be importable by the concerned pharmaceutical industry even if such item is otherwise freely importable;

a) Import permit

b) Block List

Ans: b

Question: In case of import of wine/liquor, date of expiry need not to be mentioned.

a) True

b) False

Ans: a

Question: In case of import of food items below the standard set by BSTI shall be returned tothe exporting country/any third country at importers own cost. Such conditions should be added to L/C for imports of food items.

a) True

b) False

Ans: a

Question: Date of manufacture and date of expiry shall have to be written/printed on the container/package of those raw materials used in preparation of food and beverages which are to be unusable after certain period of time.

a) True

b) False

Ans: a

Question: In case of import of food items as relief goods by the Government shall be released subject to be found suitable for human consumption at the lab test conducted by

a) The Ministry Food.

b) The Ministry of Disaster Management and Relief

c) The Ministry of Health and Family Welfare

Ans: a

Question: Any expatriate Bangladeshi with income earned abroad and any foreign investor with his share of equity can send capital machineries & raw materials on CIF or CIP basis

a) True

b) False

Ans: a

Question: Goods from foreign countries free of cost or gift items are importable on CIF or CIP basis

a) True

b) False

Ans: a 

Question: Article 1 of UCP 500 requires the text of the credit to…

a) Indicate that it is subject to the rules

b) Imply that it is subject to the rules

c) Say nothing as all credits are subject to UCP 500 automatically

Ans: a.

Question: An issuing bank is irrevocably bound by the terms of the amendment as of the time

a) The issuing bank issues the amendment

b) The advising bank receives the amendment

c) The confirming bank agrees to confirm the amendment

d) The beneficiary receives the amendment

Ans: a.

Question: An issuing bank is irrevocably bound to honour as of the time

a) The issuing bank issues the credit

b) The advising bank receives the credit

c) The advising bank sends the credit to the beneficiary

d) The beneficiary receives the credit

Ans: a.

Question: A credit is issued for EUR10000 covering 10000 widgets at EUR 1 each. The credit amount is shown as being +/-10%. This tolerance applies to both the amount and quantity.

a) False

b) True

Ans: a.

Question: The advising bank must ensure that the credit is genuine.

a) True

b) False

Ans: b.

Question: A bank that is requested to advise a credit must send the credit to the beneficiary

a) True

b) False

Ans: b

Question: According to UCP 500, a credit may be made available with a nominated bank in 4 different ways. Which of the following options indicate a correct way in which a credit may be made available with a nominated bank?

a) Negotiation

b) Mixed payment

c) Sight

d) Sight payment

e) Deferred payment

f) Avalisation

g) Acceptance

h) Usance

Ans: a, d,e and g

Question: According to the definition in article 2 of UCP 500, negotiation means the nominated bank …

a) Receiving the documents, reviewing them for compliance and sending them to the issuing bank for Settlement

b) Receiving the documents, reviewing them for compliance, advancing funds to the beneficiary and sending them to the issuing bank for reimbursement

c) Receiving the documents, reviewing them for compliance, advancing or agreeing to advance funds to the beneficiary and sending them to the issuing bank for reimbursement.

Ans: c.

Question: When a nominated bank acting on its nomination, a confirming bank, if any, or the issuing bank decides to refuse to honour or negotiate, it must give a single notice to that effect to the presenter. The notice must state:

i. That the bank is refusing to honour or negotiate; and

ii. Each discrepancy in respect of which the bank refuses to honour or negotiate; and

iii. a) That the bank is holding the documents pending further instructions from the presenter; or

b) That the issuing bank is holding the documents until it receives a waiver from the applicant and agrees to accept it, or receives further instructions from the presenter prior to agreeing to accept a waiver; or

c)That the bank is returning the documents; or

d) That the bank is acting in accordance with instructions previously received from the presenter.

Ans: iii.

Question: Under UCP 600, when an issuing bank determines that a presentation does not comply, prior to providing a notice of refusal, it may contact the applicant for a waiver of the discrepancies and the applicant will have a period of 5 business days in which to provide the waiver.

a) True

b) False

Ans: b.

Question: Under UCP 600, all documents issued by the beneficiary must be dated no later than the date of shipment.

a) True

b) False

Ans: b

Question: lf a credit requires copies of a document, which ofthe following are acceptable:

a) Carbon copies

b) Photocopies

c) Originals

Ans: a, b and c.

Question: Banks will accept as an original document one which appears to be

a) Written

b) Typed

c) On watermarked or embossed paper

d) On the issuer’s original stationery

e) On sequentially numbered paper

Ans: a,b,d & e

Question: The issuing bank, confirming bank, if any, and a nominated bank acting on its nomination shall each have a maximum period of_ banking days following the day of presentation to determine if a presentation is complying. The number of banking days following the day of presentation is ….

a) 4

b) 5

c) 6

d) 7

Ans: b

Question: Commercial invoices must appear to be issued by the

a) Manufacturer

b) Producer

c) Beneficiary

d) Exporter

Ans: c.

Question: A credit calls for a signed commercial invoice but the beneficiary presents an invoice that is not signed. As sub-article 18 (a) (iv) states that invoices need not be slgned, the unsigned invoice ls acceptable under UCP 600.

a) No

b) Yes

Ans: a.

Question: Which of the following parties may not sign a bill of lading?

a) Master

b) Carrier

c) Agent of the carrier

d) captain

e) Owner

Ans: e.

Question: The date of a postal receipt is deemed to be the date of shipment.

a) True

b) False

Ans: a.

Question: The credit is issued stating (amongst other insurance conditions) ‘for 110% ofthe invoice value’. Does this mean that the insurance must be issued for ‘exactly’ 110% of the invoice value?

a) Yes

b) No

Ans: b.

Question: According to UCP 600, insurance documents issued and signed by underwriters are not acceptable.

a) True

b) False

Ans: b.

Question: Article 1 of UCP 500 requires the text of the credit to…

a) Indicate that it is subject to the rules

b) Imply that it is subject to the rules

c) Say nothing as all credits are subject to UCP 500 automatically

Ans: a.

Question: If a credit uses the word “about” in connection to the amount of the credit or the quantity of the goods, the word “about” means that there is a tolerance In relation to the amount or quantity of:

a) +or-10%

b) +10%

c) o%

Ans: a.

Question: A bank that is requested to advise a credit must send the credit to the beneficiary.

a) True

b) False

Ans: b.

Question: A confirming bank must extend its confirmation to an amendment?

a) Yes

b) No

Ans: b.

Question: Under UCP 600, which of the following parties make the decision as to whether or not documents represent a complying presentation?

a) The applicant

b) The issuing bank

c) The nominated bank

d) The confirming bank

e) The advising bank

Ans: b, c, and d

Question: Reimbursement by an issuing bank for the amount of a complying presentation under a credit available by acceptance or deferred payment is due at maturity

a) only if the nominated bank has prepaid or purchased before maturity

b) only if the beneficiary presents the accepted draft or deferred payment undertaking

c) whether or not the nominated bank prepaid or purchased before maturity

Ans: c.

Question: An issuing bank must reimburse a nominated bank that has honoured or negotiated a complying presentation

a) and forwarded the documents to the issuing bank

b) and forwarded the documents to the confirming bank or issuing bank

c) and claimed reimbursement from the reimbursing bank but has not been paid.

Ans: a.

Question: Under UCP 600, all documents issued by the beneficiary must be dated no later than the date of shipment.

a) True

b) False

Ans: b.

Question: Commercial invoices must appear to be issued by the

a) manufacturer

b) producer

c) beneficiary

d) exporter

Ans: c.

Question: Which of the following documents must be dated?

1. Commercial invoice.

2. Insurance certificate.

3. Non-negotiable sea waybill.

4. Certificate of origin.

Select one:

a) 1 and 2 only.

b) 1, 2 and 4 only.

c) 2,3 and 4 only.

d) 2 and 4 only.

Answer: 2, 3 and 4 only. 

Question: A credit requires presentation of an insurance certificate covering risks in accordance with Institute Cargo Clauses (A). Which of the following would also be acceptable?

1. An insurance policy covering ‘all risks’.
2. An insurance policy covering Institute Cargo Clauses (A)’.
3. An insurance certificate covering risks in accordance with lnstitute Cargo Clauses (B).
4. An insurance certificate covering risks in accordance with Institute Cargo Clauses (C). Select one:
5. A) 1 only. B) 2 only. C) 3 and 4 only. D) l and 2only.

 Answer: 2 only.