QP Mock-Up For Ea Udpl 2453

UNIVERSITI TUNKU ABDUL RAHMAN
ACADEMIC YEAR 2019/2020
JANUARY 2020 TRIMESTER
FINAL ASSESMENT
(MOCK-UP)
UDPL2453 EXPORT AND IMPORT DOCUMENTATION
DATE & TIME OF DOWNLOAD: 3:00 P.M, 24TH APRIL 2020
DATE & TIME OF SUBMISSION: 3.00 P.M, 26TH APRIL 2020
DURATION: 2 DAY2
BACHELOR OF SCIENCE (HONOURS) LOGISTICS AND

INTERNATIONAL SHIPPING
Instructions to Students:
General
1. This Final Assessment (FA) is an Individual, Open-Book assessment which consists of

FOUR (4) questions. Each question carries 25 marks.
2. You are required to answer ALL questions, and submit the ANSWER SCRIPT by
2.00 pm, 26TH APR 2020.
3. During the period of 2 days of this FA, the examiner(s) can be reached at
Email:[[email protected]]
You may use the above e-platform(s) to check with the examiner(s) if you need any
clarification on this FA question paper.
4. You may refer to any books, lecture notes, published materials, online resources etc.
when answering the questions. Proper referencing is necessary to avoid plagiarism.
However, Copy-and-Paste, Consultation, Discussion and Sharing of Answers are
STRICTLY PROHIBITED in this FA.
CASE STUDY [Total: 100 marks]

This mock-up Extended Assignment consists of 4 questions on 3 printed pages
2
TS-DAWN Sdn Bhd is an NVOCC (Non-Vessel Operating Common Carrier) wholly owned
by a few Malaysian entrepreneurs. This company has been in operation since 1990. Besides
providing the transshipment services, it also imports the leisure boats and special-purpose
vessels for the security forces in Malaysia.
In mid-2018, this Company won a procurement contract to supply twenty of 18-ton combat
boats (CB 90 H) to the Malaysian Special Force Unit. The boat has two engines of 600kW
with maximum speed of 45 knots. Each boat is equipped with a 12.7 mm caliber of machine
gun mounted at the bow. The contract schedule is as shown below.
Name of Company TS-DAWN Sdn Bhd

Quantity/Item Descriptions 20 of Combat Boat CB 90 H (600kW) with 12.7 mm Gun
Manufacturer Skagen AB, Sweden
Price of Each Boat RM I.5 million
Total Price RM 30 million
Shipment First delivery: 10 boats (within 6 months after signing the
contract)
Final Delivery: 10 boats ( 3 months after the 1st delivery)
Loading Port Port Abraham AB, Sweden
Discharging Port Port Kallang, Malaysia
Type of Contract FOB at designated ship, Port Abraham AB, Sweden
Nominated Insurance Kumpulan Insuran Kerajaan (Wholly owned by Malaysian
Company Government)
The first shipment was duly completed in mid- Dec, 2019 however during the second
shipment one of the boats was severely damaged after it dished into the sea during the
unloading at Port Kallang. The result of inquiry revealed that one of the boat slings in the
lifting gear was snapped hence, the boat fell into the sea.
That incident has caused confusions and they were started to pointing fingers to each other,
which organization was actually responsible for the damage. The Malaysian Special Force
Unit has blamed the Company for not ensuring the safe delivery of the boats. In turn, the
Company was blaming the Port Kallang Authority for the same reason. The manufacturer
insisted that the pre-shipment inspection (PSI) should be done before the delivery but it was
not done due time constraints. The said matter was only settled one year later after the
intervention by the Finance Ministry of Malaysia. The salvage and repairing of boat were
carried out by TS-DAWN Sdn Bhd which amounting to RM 3 million.
_______________________
Note:
This case study was prepared by Commander Mohd Abidin Bakar RMN (Retired) as a basis of discussion for
student assignment. The facts and other information are purposely created for this case study.
Answer ALL questions:

UDPL2453 EXPORT AND IMPORT DOCUMENTATION3
Q1. Explain the required documents and procedure for TS-DAWN Sdn Bhd to affect
the import of twenty combat boats (CB 90 H) for the Malaysian Special Force Unit.
(25 marks)
f you need to export goods or services, a onetime registration procedure is being completed in most of the
countries. Such export licence may be obtained from concerned government department if required in
Malaysia.
To import or export goods which require a license, traders first must register with the Companies
Commission of Malaysia. Once registered, a company must then apply for an import license from the
Ministry of International Trade and Industry (MITI). The Ministry of International Trade and Industry,
MITI, is a ministry of the Government of Malaysia that is responsible for international trade, industry,
investment, productivity, small and medium enterprise, development finance institution, halal industry,
automotive, steel, strategic trade.
the documents required for export from Exporting country is based on the product exporting from
Exporting country, multilateral, bilateral or unilateral trade agreements, and other trade policies of
Exporting country government. The export documents required in Exporting country also depends up on
the nature of goods exporting (General goods, Personal effects, Dangerous goods, Livestock etc.),
for example, Customs bond if applicable for specific goods exporting to claim import benefits
Legal Undertaking (LUT) if applicable to claim export benefits from Exporting country government or to
export specific products to meet government requirements and obligations. Customs
declarations wherever applicable: Exporting country’s export customs clearance declarations as per
specified format of Exporting country’s government. Export Licence if applicable to be obtained from
government agency of Exporting country. Purchase order or Letter of Credit between Exporting
country’s exporter and overseas buyer of goods. Commercial Invoice cum packing list issued by seller of
goods Certificate of Origin issued by competent authority of origin country of goods. Insurance
Certificate issued by the government authorized insurance service provider Certificates of Inspection if
applicable: Some of the importers demands exporter (seller) through LC or Purchase order to inspect
export goods to Exporting country by an internationally recognized inspection agency like SGS, BVQI, or
other Quality inspecting agency etc. ATA CARNET/Temporary shipment certificate if applicable
Certificate of Analysis if applicable. The buyer may insist the seller to enclose certificate of analysis
about the goods. The same certificate helps Exporting country’s customs authorities to confirm the product
imported to the country. Certificate of Free Sale if applicable. If goods are not commercially involved, a
certificate of sale is attached by exporter along with goods dispatched. Weight Certificate if applicable.
Weight certificate issued by exporter is required at various circumstances like satiability of flight, satiability
of vessel, International road safety rules, import or export duty calculation, claiming export/import benefits
from government etc. Consular Invoice if applicable: Some of the importing countries insists embassy
attested documents which is mandatory at importing country to customs clear goods.
Q2. Briefly explain the role of the NVOCC. (25

marks)
The status of a NVOCC is similar to a carrier except that it does not own and operate such vessels. The
NVOCC acts as a middleman between shippers and carriers.

4
The NVOCC plays the role of a principal when dealing with shippers but act as a shipper when dealing
with the carrier.
A NVOCC's functions include booking space with shipping companies, providing documentation services
to shippers, coordinating with suppliers, shippers and the shipping lines to ensure smooth delivery of cargo
to and from the port and arranging customs clearance of the cargo.
The services of a NVOCC is most desired when a shipper wish to ship only a small quantity of cargo which
is insufficient for a full container load (FCL). The NVOCC will consolidate all such small quantities in a
full container load for shipment.
Q3. Can TS-DAWN Sdn Bhd claim from the boat manufacturer for the cost of repairs of
the boat? How could this Company affect its insurance claim pertaining to the cost of
repair of the boat? Explain with reason(s) for your answers. (25
marks)

5
Q4. Discuss the importance of pre-shipment inspection (PSI). (25

marks)
 The inspection helps to reduce the risk of receiving poor-quality goods that are non-compliant as
well.

6
 The inspection makes it easy for the exporters to assess the quality of the goods during
the production process and take corrective measures as and when required.
 The inspection helps to convey a deadline within which the exporters can expect the good
production to be complete and made available for shipment.
 On completion of the inspection, the exporters will receive a pre-shipment inspection certificate
that can be displayed as one of the quality measures followed by the goods manufacturing
company.
_____________________________________

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UNIVERSITI TUNKU ABDUL RAHMAN

ACADEMIC YEAR 2019/2020

JANUARY 2020 TRIMESTER

UDPL2453 EXPORT AND IMPORT DOCUMENTATION

DATE & TIME OF DOWNLOAD: 3:00 P.M, 24TH APRIL 2020

DATE & TIME OF SUBMISSION: 3.00 P.M, 26TH APRIL 2020

BACHELOR OF SCIENCE (HONOURS) LOGISTICS AND

1. This Final Assessment (FA) is an Individual, Open-Book assessment which consists of

CASE STUDY [Total: 100 marks]

Name of Company TS-DAWN Sdn Bhd

Answer ALL questions:

This mock-up Extended Assignment consists of 4 questions on 3 printed pages

Q2. Briefly explain the role of the NVOCC. (25

This mock-up Extended Assignment consists of 4 questions on 3 printed pages

This mock-up Extended Assignment consists of 4 questions on 3 printed pages

Q4. Discuss the importance of pre-shipment inspection (PSI). (25

This mock-up Extended Assignment consists of 4 questions on 3 printed pages

This mock-up Extended Assignment consists of 4 questions on 3 printed pages

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