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SS1: COMMERCE - 2ND TERM

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  1. Modern Trends in Retail Business | Week 1
    2 Topics
    |
    1 Quiz
  2. The Wholesaler | Week 2
    5 Topics
    |
    1 Quiz
  3. Warehouse | Week 3
    3 Topics
    |
    1 Quiz
  4. Foreign Trade (International) | Week 4
    6 Topics
    |
    2 Quizzes
  5. Tariffs & Reasons for The Imposition of Tariffs | Week 5
    5 Topics
    |
    1 Quiz
  6. Functions of Customs & Exercise | Week 6
    4 Topics
    |
    2 Quizzes
  7. Commodity Exchange | Week 7
    7 Topics
  8. Sole Proprietorship | Week 8
    2 Topics
    |
    1 Quiz
  9. Partnership | Week 9
    5 Topics
    |
    6 Quizzes
  10. Money | Week 10
    3 Topics
    |
    2 Quizzes



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1. Del Credere Commission: This is an extra commission received by the del credere agent for indemnifying the goods against loss or guarantee that the buyer will pay for the goods.

2. Bonded Warehouse: This is a place where goods whose customs duties have not been paid are stored until they are settled. It is usually located at the port.

3. Customs Drawback: This is repayment of the customs duties paid on imported materials which are to be re-exported.

4. Documentary Bill: This is a bill of exchange to which are attached such documents as a bill of lading, Invoice, Insurance policy, dock warrant etc.

5. Free Port: Free port allows goods that are to be re-exported to enter free without the payment of customs duties.

6. Demurage: This is a term used in connection with charter party in which the charterer pays an extra charge for retaining a ship beyond the permitted time for loading and offloading in a port.

7. Advalorem Duty: This is a form of tax or duty which is calculated or paid based on the value of the goods and not on their quantity.

8. Letter of Credit: This is a document authorizing a bank abroad to pay the bearer a specified sum of money for an international trade transaction.

Evaluation Questions

1. What is tariff?

2. Give five reasons why countries may restrict foreign trade

3. Mention five tools for the restrictions of foreign trade

4. List and explain five documents used in foreign trade

5. State five methods of payment in foreign trade

6. Explain the following documents used in International trade

a. Indent

b. Bill of lading

c. Consular invoice

d. Certificate of origin

e. Bill of exchange (SSCE, 2015)

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Question 6

Explain the following documents used in international trade
a. Indent
b. Bill of lading
c. Consular invoice
d. Certificate of origin
e. Bill of exchange

  • Indent: This is a document used in international trade. It is an order to buy goods conveyed by the importer to a potential supplier. It can be placed with the seller or his agent. Indent gives details of the goods required approximate price, date of delivery, etc.
  • Bill of Lading: This is a document of title giving the holder a right to take possession of the goods to which it refers. A bill of lading is a contract of carriage of goods between an exporter and the shipping company.
  • Consular Invoice: This is the voice that has been signed by the consul of the country to which the goods is to be consigned. The invoice is signed to prevent understanding the price so as not to attract fewer customs duties.
  • Certificate of Origin: This is a document signed by a customs officer of the exporting country to show the country from which goods are exported or where it originated from.
  • Bill of Exchange: This is an unconditional order in writing addressed by one person to another and signed by the person to whom it is addressed to pay on demand or at a fixed or determinable future time a certain sum in money to the order of a specified person
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