Theory question 105
Foreign Trade Documents(a) Differentiate between indent and quotation.
(b) State four functions of each of the following organizations: (i) export promotion council; (ii) customs and excise authority.
Show the model answer
(a) An indent is an order for goods sent by an importer to an agent/supplier abroad (used in foreign trade); a quotation is a seller's reply to an enquiry stating the prices and terms on which goods can be supplied (from seller to buyer).
(b)(i) Export promotion council (any four): finds foreign markets for local products; organises and sponsors participation in trade fairs abroad; gives information and advice to exporters; trains exporters in export procedures and standards; gives incentives and help with export finance; promotes non-oil/non-traditional exports.
(ii) Customs and excise authority (any four): collects import, export and excise duties; prevents smuggling and arrests smugglers; stops the import of banned and harmful goods; manages bonded warehouses; checks documents and values goods; collects trade statistics for government.
Indent goes from buyer; quotation comes from seller.