To Sanket Rough Draft IM Assignment - 3

ASSIGNMENT -3 – INTERNATIONAL MARKETING
Name – Sanket Sourav Bal Roll No. – 19BM63012
1. What is Harmonized Commodity Classification & Coding System (HS Code) used for goods
crossing International Gateways?
Ans - The Harmonized System is an international nomenclature for the classification of products. It allows
participating countries to classify traded goods on a common basis for customs purposes. At the international level,
the Harmonized System (HS) for classifying goods is a six-digit code system.
The uses for the HS Code while goods crossing International Gateways:
 HS Codes help standardize how products are identified globally during trade
 It is also used to monitor controlled goods, freight tariffs, quota controls and trade policies, and more, by
government bodies and private organizations.
 Effect on Duty Rates: Duty rates are closely involved with HS codes. Not assigning an HS code or providing an
incorrect HS code could be very commercially risky. Understanding duty tariffs is a very critical step of the
entire shipping process. In addition to the standard duty rates, antidumping and countervailing duties are
also closely connected to HS codes.
 Importer Security Filing (“10+2”): One of the most effective methods to comply with Importer Security
Filing (“10+2”) requirements is to provide the HS code within the purchase order for the importer.
 To identify Risk of Delays: Shippers risk delays and face storage charges when customs brokers are not able
to classify a shipment correctly and identify the commodity and its corresponding HS codes before the vessel
arrived and free time at the terminal expires.
 Regulatory Risk: Shippers also risk regulatory intervention. Assigning HS codes on the fly is a risky venture
resulting in lower accuracy. Improper HS codes can lead to the importer paying too much duty or being fined
for the inaccuracy.
An example of a HS Code is 1704.90.10.00. and the product it refers to
 17 refers to Chapter 17 of Section IV of the code – Prepared foodstuffs; beverages,
spirits and vinegar; tobacco and manufactured tobacco substitutes
 04 refers to sugar confectionery (including white chocolate), not containing cocoa
 90 refers to confections or sweetmeats ready for consumption:
 10.00 refers to candied nuts
Therefore, 1704.90.10.00 is candied nuts.
2. What is Hazardous Cargo & Material Safety Data Sheet.

Ans – Hazardous Cargo are materials that if not properly controlled & transported present a potential hazard to
human health and safety (HAZMAT). There is a need of categorizing the hazardous materials in case of an
emergency, for example, if there is a spill or a leak, having your materials properly categorized ensures that first
responders and emergency personnel can identify the hazardous materials and know exactly what they are dealing
with.
As a basic requirement Hazmats are to be handled, packed, labeled, & transported as per Regulatory body’s
mandate:
• There are 9 Comprehensive Classification of Hazmats :[ Lower is the group no. higher is the hazard]. Example
of 8 – All acids and Lead Acid type batteries. (Li-ion batteries both Chem & electrical fire hazard)
1- Explosives 2- Flammable Gases 3- Flammable Liquids 4- Flammable Solids 5-Oxidising

6-Toxic & Infectious 7-Radioactive. 8-Corrosives. 9-Misc
MSDS stands for Material Data Safety Sheet, It is a document that contains info on potential hazards (health, fire,
reactivity & environmental) and how to work safely with the product. It also provides info on the use, storage,
handling & emergency procedures related to the hazards of the material.
Generally, MSDS is prepared by Manufacturer / Supplier and it also covers Preventive and First Aid procedures. Basic
purpose is for the Seller to be familiar with safe storage, safe handling & potential risks in case of spillages & what to
do in an emergency. While reading an MSDS, we should keep in mind that there are three main types of hazards
which can be related to the use of a chemical product:
- Health Hazards. For example, skin contact with strong acids will cause burns.
- Fire Hazards. For example, propane burns very easily and may explode.
- Reactivity Hazards. For example, mixing ammonia and household bleach will result in the release of a harmful gas.
In addition, international format MSDSs include information on environmental hazards (hazards to the natural
environment).
3. What is meant by “Title of Goods “in Import / Export Trade? Indicate an important benefit of Title
to the owner of goods in a transaction
Ans –
Title of Goods is a document that represents the ownership of the goods in Import/export trade
Generally and Legally Transfer of Title means “Transfer of Ownership of Goods”. in the contract Seller & Buyer
agrees that Title of Goods (purchased / sold) will pass on to Buyer when they are shipped from Seller’s premises. It is
important so that the Risk of loss (partly or fully) and Insurance claim settlement can be done to and hold up by
actual owner. Title of goods is important because it acknowledges the seller and buyers' rights in the event of any
damage to the goods.
One benefit of title to the owner of goods in a transaction is that the owner will always have an upper hand while
dictating terms and conditions while there is a transfer of title. For Example, A steals phone of B and sells to C who
buys in good faith. However, C will not have the title of the phone. When the lawmaker catches up the phone has to
be returned to B as there was no transfer of title.
Now there are some risks to it also. As risk follows ownership. To understand this better let’s see this example, A
purchased a suit length from B’s Shop. But he left the cloth in B’s shop to be collected by him later on. Incidentally
fire broke out in the shop as a result of which, the suit length was gutted. The loss would fall on A because at the
time of loss of cloth he had become its owner.
Benefits of Title to the owner:
 It gives right to action against third party in the transfer of ownership of goods: If after the contract of sale,
there is a risk of the goods being damaged by the action of third parties, it is generally the owner who can
take action and not the person who is merely in possession of the goods
 Helps owner to take claim during Insolvency of the Buyer or Seller in transfer of ownership

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ASSIGNMENT -3 – INTERNATIONAL MARKETING

Name – Sanket Sourav Bal Roll No. – 19BM63012

2. What is Hazardous Cargo & Material Safety Data Sheet.

1- Explosives 2- Flammable Gases 3- Flammable Liquids 4- Flammable Solids 5-Oxidising

Benefits of Title to the owner:

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