problem1)

Read the case study be low carefully and answer the problems that follow.

You are the owner of a small Pietermaritzburg manufacturer of automatic seed planters which are operated by a computerised control box mounted on an outer frame. The machines are towed by conventional tractors and can be handled by unskilled labour. They are robust and easily maintained and are ideal for the planting of large areas of vegetables, wheat, cotton, trees and the like. The seed planters have been selling particularly well on the local market and you decided some months ago to advertise your product on a trade enquiry website on the Internet.

A number of enquiries have been received from countries in southern Africa as well as from India in the East. One established importer of many years in India has expressed an interest in having one seed planter shipped on approval to his premises in Bangalore before he commits himself to a large order.

You have agreed to send him a seed planter on condition that it will be returned to you within a period of three months. India permits samples of commercial value to be imported temporarily under bond or deposit and admits only exhibition materials under cover of ATA carnets. There are no special documentary requirements for this type of product and an import permit is not applicable. The ex-works value of one seed planter is R125 000 and the machinery is not subject to any export control.

The product will be crated and transported by a road haulier, appointed by the exporter, to Durban where a freight forwarder, at the exporter’s expense, will take over by providing the complete groupage service of sea transport to Madras and railage to the inland terminal in Bangalore. At this place, the importer will have to arrange and pay for import customs clearing and for transporting the crated seed planter to his premises. You have been told that part of the railway line to Bangalore is in a risky condition after flooding due to heavy rains in the region. It is known that the cargo handling in the port of Madras is often affected by actions of striking dock-workers. There is no direct shipping line from South Africa to Madras and trans shipment will occur in Mumbai(Bombay). Depending on the shipping line used, sailing time from Durban to Mumbai is approximately 3 to 4 weeks and from there at least another week to Madras. Getting cargo railed to Bangalore may involve a few days. In India, importers and exporters are at liberty to contract carriage and insurance with parties not domiciled in that country.

1.1) Give a full description of the documentation and procedures required in clearing the sample seed planter through customs from South Africa and into India. Assume that the freight forwarder is a SARS accredited client. Recommended: bullet/paragraph type answer of approximately 390 words

1.2) Assume that 9 months later the importer orders a full container load (FCL) of seed planters for sale in India on the same delivery basis used for the sample shipment. Discuss how the required documentation and customs procedures will differ from those applicable to the sample consignment.

Recommended: bullet/paragraph type answer of approximately 110 words

1.3) Given that a road haulier appointed by the manufacturer transports the container of seed planters to Durban port and that the shipping line offers on-carriage to the inland terminal of Bangalore, progressively list all the Incoterms that would be appropriate for this FCL of seed planters and describe which specific delivery term you would use for the transaction and why.

Recommended: bullet/paragraph type answer of approximately 250 words

problem2) In respect of a small shipment of relatively valuable metal bakery ovens to be transported groupage from Cape Town to Brisbane in Australia with transshipment in Sydney:

• Describe only the relevant factors that may influence the packing and marking decisions of this shipment.

• detail how the packs should be marked in terms of shipping and handling. Recommended: bullet/paragraph type answer of approximately 370 words

problem3) You, as the personal assistant to the export marketing director, are aware that an export market, especially in Europe, may be more environmentally-conscious than South Africa. You have been asked to find out a little more about the general importance of environmental issues and why a South African exporter should take note of trends in respect of environmental legislation.