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Punjab PSEB Senior Secondary NSQF Logistics (Documentation Assistant) study materials
Punjab PSEB Senior Secondary NSQF Logistics (Documentation Assistant) study resources

Punjab PSEB Senior Secondary NSQF Logistics (Documentation Assistant) practice questions

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Question 1Fundamentals of Logistics and Supply Chain Management

In the NSQF logistics syllabus, which description best captures the scope of logistics?

  1. Managing the flow of goods, information and services from origin to consumption Correct answer.
  2. Designing advertising plans for a product and selecting media for regional campaigns
  3. Operating automated machinery on a production line in a factory
  4. Verifying purchase invoices and filing them for a statutory audit

Explanation

Logistics covers the planning, execution and control of the forward and reverse flow of goods, information and related services between the point of origin and the point of consumption so that customer requirements are met. Transport and warehousing are only functional components of this wider flow, not the whole of it.

Question 2Fundamentals of Logistics and Supply Chain Management

A transport contract requires delivery of the right product, in the right quantity, in the right condition, to the right place, at the right time and at the right cost. In logistics these service criteria are commonly summarised as the:

  1. Five Ss of workplace housekeeping
  2. Three tiers of third-party providers
  3. Four Ps of the marketing mix
  4. Seven rights of logistics Correct answer.

Explanation

The seven rights of logistics state that the right product must reach the right customer in the right quantity, in the right condition, at the right place, at the right time and at the right cost. They form the standard service-quality framework against which a logistics operation is measured.

Question 3Fundamentals of Logistics and Supply Chain Management

A thermal power plant needs a steady supply of bulk coal from a mine about 900 kilometres away. There is no urgency, and freight cost per tonne-kilometre is the deciding factor. Which transport mode is most suitable?

  1. Pipelines
  2. Courier and express parcel service
  3. Railways Correct answer.
  4. Air cargo

Explanation

Rail is preferred for heavy, low-value bulk commodities over long land distances because its cost per tonne-kilometre is low and the consignment is not time-critical. Coal movement from a mine to a thermal plant is the classic case for rail.

Question 4Fundamentals of Logistics and Supply Chain Management

A retail chain sends damaged refrigerators back to the manufacturer for repair and returns used packaging for recycling. From the manufacturer's viewpoint, this movement is best classified as:

  1. Reverse logistics Correct answer.
  2. Inbound logistics of raw material
  3. Outbound distribution to dealers
  4. Production line feeding

Explanation

Reverse logistics is the flow of goods, packaging and materials back from the point of consumption towards the point of origin for repair, reuse, recycling or disposal. Warranty returns, damaged goods and packaging take-back all fall within this category.

Question 5Fundamentals of Logistics and Supply Chain Management

At a distribution centre, cartons unloaded from incoming trucks are sorted and loaded onto outbound trucks within a few hours, without being put away into storage racks. This practice is known as:

  1. Cycle counting
  2. Cross-docking Correct answer.
  3. Milk-run collection
  4. Bonded warehousing

Explanation

Cross-docking transfers goods directly from inbound to outbound vehicles with little or no storage in between, usually within a fixed time window. It reduces handling and inventory cost but demands accurate scheduling and reliable vehicle arrivals.

Question 6Fundamentals of Logistics and Supply Chain Management

A small, steady rise in consumer demand at retail outlets is followed by much larger swings in the orders placed by wholesalers and then by the factory. This pattern is best explained by:

  1. The bullwhip effect Correct answer.
  2. The Pareto principle applied to store layout
  3. The economic order quantity formula
  4. The milk-run distribution system

Explanation

The bullwhip effect describes how demand variability grows as orders move up the chain from retailer to wholesaler to manufacturer. It is driven by forecasting on order data, order batching, price fluctuations and shortage rationing, and it is dampened by sharing point-of-sale data across the chain.

Question 7Fundamentals of Logistics and Supply Chain Management

Under a just-in-time supply arrangement, materials reach the plant shortly before they are needed for production. The main benefit the manufacturer expects is:

  1. Lower dependence on supplier quality
  2. Reduced inventory holding cost and working capital blockage Correct answer.
  3. Longer supplier lead times that allow bulk buying
  4. Higher buffer stock held at the plant

Explanation

Just-in-time keeps inventory at the minimum required by synchronising deliveries with the production schedule, so holding cost, storage space and blocked working capital all fall. It works only with reliable, quality-assured suppliers because no buffer stock exists to absorb failures.

Question 8Fundamentals of Logistics and Supply Chain Management

A garment manufacturer keeps design and production in-house but contracts an outside firm to run its warehouses, truck fleet and order fulfilment for a service fee. That outside firm is acting as a:

  1. Consignee named in the bill of lading
  2. Third-party logistics service provider Correct answer.
  3. Captive logistics division of the manufacturer
  4. Freight forwarder handling customs clearance only

Explanation

A third-party logistics provider performs outsourced logistics functions such as warehousing, transportation and order fulfilment for another company under a service contract. Since the manufacturer keeps design and production in-house and outsources only the logistics activities, the arrangement is a 3PL service.

Question 9Fundamentals of Logistics and Supply Chain Management

A logistics manager shifts a regular consignment from road to rail. Freight charges fall, but transit time rises by two days, so the company increases its safety stock. This decision illustrates which core principle of logistics management?

  1. Maximisation of service level regardless of cost
  2. Separation of logistics from supply chain management
  3. Elimination of inventory from the distribution pipeline
  4. Total cost trade-off among logistics activities Correct answer.

Explanation

Logistics decisions are judged on total system cost rather than on a single cost line. A cheaper freight mode that lengthens transit time raises inventory and stock-holding cost, so the saving is real only if total cost falls or service improves.

Question 10Fundamentals of Logistics and Supply Chain Management

Under a vendor-managed inventory arrangement with a supermarket chain, which party decides when and in what quantity the shelf stock is replenished?

  1. The supplier, working from stock and sales data shared by the retailer Correct answer.
  2. The customs officer, working from the import manifest
  3. The transport contractor, working from available truck capacity
  4. The supermarket's store manager, working from daily sales sheets

Explanation

In vendor-managed inventory the supplier monitors the retailer's stock levels and sales data and takes responsibility for replenishment decisions and timing. The retailer shares information but does not place the orders itself, which reduces both stock-outs and excess inventory across the chain.

Question 11Fundamentals of Logistics and Supply Chain Management

In logistics documentation, which function of a bill of lading makes it a document of title that can be transferred to another party?

  1. It acts as a document of title transferable by endorsement Correct answer.
  2. It lists the freight charges payable by the consignee
  3. It records the contract of carriage between shipper and carrier
  4. It proves that the carrier received the goods in apparent good order

Explanation

A bill of lading has three main functions: it is a receipt for goods, evidence of the contract of carriage, and a document of title. The document-of-title function allows the lawful holder to claim the goods and to transfer ownership by endorsement, which is what makes it negotiable.

Question 12Fundamentals of Logistics and Supply Chain Management

Which description best defines a supply chain in the context of logistics management?

  1. A single warehouse where finished goods are stored before dispatch
  2. A software package used only for raising invoices
  3. A transport contract between a shipper and a truck operator
  4. The linked network that moves goods from suppliers to end customers Correct answer.

Explanation

A supply chain covers the entire network of organisations and activities that transform raw materials into finished products and deliver them to end customers. It includes suppliers, manufacturers, distributors, retailers, transport providers and information flows, not just one facility.

Question 13Fundamentals of Logistics and Supply Chain Management

In logistics planning, what does the term lead time measure?

  1. The time allowed for paying a freight invoice
  2. The shelf life remaining when goods reach the customer
  3. The time between placing an order and receiving the goods Correct answer.
  4. The time taken to load a vehicle at the dock

Explanation

Lead time is the elapsed time from when a customer or downstream stage places an order until the goods are received. It includes order processing, procurement or production, picking, packing and transport, so it is a key input to inventory planning.

Question 14Fundamentals of Logistics and Supply Chain Management

A logistics manager uses ABC analysis to classify inventory. Which group represents Class A items?

  1. Items that require cold-chain storage only
  2. Items that are obsolete and awaiting disposal
  3. Items with the lowest annual usage value, kept in bulk
  4. Items with high annual consumption value, requiring tight control Correct answer.

Explanation

ABC analysis classifies inventory by annual consumption value, usually price multiplied by usage. Class A items account for a large share of value but a small share of items, so they receive tight control, frequent review and accurate records.

Question 15Fundamentals of Logistics and Supply Chain Management

A company wants to reduce total logistics cost by consolidating small shipments into full truckloads. Which cost trade-off is it mainly managing?

  1. Packaging cost against labelling cost
  2. Order processing cost against invoice printing
  3. Transport cost against inventory carrying cost Correct answer.
  4. Customs duty against marine insurance

Explanation

Consolidating small orders into full truckloads lowers transport cost per unit and may reduce handling. However, it can increase inventory carrying cost because larger or less frequent shipments leave more stock at the facility, so the manager is balancing transport cost against inventory cost.

Question 16Fundamentals of Logistics and Supply Chain Management

Under Incoterms 2020, which trade term places the maximum responsibility on the seller, including import clearance and payment of duties?

  1. CIF
  2. DDP Correct answer.
  3. EXW
  4. FCA

Explanation

Under Incoterms 2020, DDP (Delivered Duty Paid) places the greatest obligation on the seller. The seller delivers to the named destination, clears the goods for import and pays duties and taxes, leaving the buyer with minimal responsibility.

Question 17Fundamentals of Logistics and Supply Chain Management

What is the primary purpose of a bonded warehouse in international logistics?

  1. To store only perishable goods under refrigeration
  2. To store imported goods before customs duty is paid Correct answer.
  3. To manufacture export goods without any customs supervision
  4. To sell goods directly to retail customers

Explanation

A bonded warehouse stores imported goods under customs supervision before duty and taxes are paid. Goods may be kept, repacked or cleared for home use or re-export while the duty liability remains suspended.

Question 18Fundamentals of Logistics and Supply Chain Management

In a pull-based supply chain, what primarily triggers production and replenishment?

  1. A transport timetable set by the carrier
  2. Raw material availability reported by the purchasing team
  3. Actual customer orders received at the retail point Correct answer.
  4. A fixed production schedule prepared from annual sales targets

Explanation

In a pull-based supply chain, production and replenishment respond to actual customer demand rather than to a forecast. Orders from the retail point trigger upstream activity, which helps reduce excess inventory but requires responsive capacity and information flow.

Question 19Fundamentals of Logistics and Supply Chain Management

A distributor replaces five regional warehouses with one central warehouse. Total logistics cost falls, but customer delivery time increases. Which concept does this best illustrate?

  1. Economies of scale in manufacturing
  2. The trade-off between logistics cost and customer service Correct answer.
  3. Reverse logistics for returned goods
  4. The bullwhip effect in demand forecasting

Explanation

The example shows that reducing the number of warehouses lowers inventory and facility costs but lengthens delivery distance and time. This is the classic cost-service trade-off: a logistics network design choice improves one dimension while worsening another.

Question 20Fundamentals of Logistics and Supply Chain Management

A firm holds safety stock because demand during the supplier's lead time varies. If the supplier becomes more reliable and lead-time variability falls, what is the most likely effect on the required safety stock?

  1. It will stay exactly the same because safety stock depends only on demand
  2. It will be reclassified as cycle stock held for normal demand
  3. It will fall because less buffer is needed for lead-time variability Correct answer.
  4. It will rise because the supplier is more reliable

Explanation

Safety stock protects against uncertainty in demand and lead time. If the supplier's lead time becomes more reliable, the variability that safety stock must cover falls, so the required safety stock can be reduced while maintaining the same service level.

Question 21Fundamentals of Logistics and Supply Chain Management

At a distribution centre, cartons are stacked and secured on a wooden platform so that a forklift can lift and move the entire stack in a single operation. Which logistics handling aid is being used?

  1. A shipping bill
  2. A packing list
  3. A pallet Correct answer.
  4. A consignment note

Explanation

A pallet is a unit load device: cartons are stacked and secured on it so a forklift can move the whole stack in one lift, which reduces handling time, labour and damage. Packing lists, consignment notes and shipping bills are documents, not physical handling bases.

Question 22Fundamentals of Logistics and Supply Chain Management

A supplier's contract with a retail chain sets a target that at least 95 per cent of purchase orders must arrive complete and within the agreed delivery window. Which logistics performance indicator does this target measure?

  1. Average landed cost per unit
  2. On-time-in-full (OTIF) Correct answer.
  3. Economic order quantity (EOQ)
  4. Stock-keeping unit (SKU) count

Explanation

OTIF combines delivery reliability, meaning arrival within the agreed window, with completeness, meaning the full quantity and order lines are delivered. A target that sets a single percentage against both conditions together is measured by OTIF, whereas the other measures describe order sizing, product range and cost.

Question 23Fundamentals of Logistics and Supply Chain Management

A shipping line quotes vessel capacity in TEU. A standard 40-foot general-purpose container occupies the space of how many TEU?

  1. One TEU
  2. Two TEU Correct answer.
  3. Three TEU
  4. Half a TEU

Explanation

TEU means twenty-foot equivalent unit and is based on the standard 20-foot container. A standard 40-foot container is twice that length and therefore counts as two TEU, which is why a 40-foot box is often called an FEU, or forty-foot equivalent unit.

Question 24Fundamentals of Logistics and Supply Chain Management

Under Incoterms 2020, which trade term may be used only where the goods are carried by sea or inland waterway?

  1. FCA
  2. CPT
  3. DAP
  4. FOB Correct answer.

Explanation

FOB requires the seller to deliver the goods on board the vessel nominated by the buyer, so it can only operate where a ship is used, that is sea and inland waterway traffic. FCA, CPT and DAP are drafted for any mode of transport, including road, rail and multimodal container movements.

Question 25Fundamentals of Logistics and Supply Chain Management

A consignee collects an imported container, unpacks it at its own godown and returns the empty box to the carrier's depot eight days after the free period allowed in the tariff. What is the charge for this delay called?

  1. Detention Correct answer.
  2. Laytime
  3. Wharfage
  4. Demurrage

Explanation

Detention is levied when the merchant keeps the carrier's container or equipment outside the terminal beyond the agreed free days, as happens when an unpacked box is returned late to the depot. Demurrage, by contrast, applies while cargo or a container remains inside the terminal or on board beyond free time.

Question 26Fundamentals of Logistics and Supply Chain Management

A car plant's inbound plan requires one truck to leave the plant each morning, collect small consignments from six component suppliers located along the same highway, and return loaded for the afternoon shift. Which inbound arrangement does this describe?

  1. A cross-dock
  2. A bonded transfer
  3. A drop shipment
  4. A milk run Correct answer.

Explanation

In a milk run, one vehicle follows a fixed route and collects small loads from several suppliers before returning to the plant with a composite load, so each supplier is spared a dedicated trip. This raises vehicle fill and cuts inbound freight cost, whereas cross-docking transfers loads at a terminal and drop shipment bypasses the buyer's own site.

Question 27Fundamentals of Logistics and Supply Chain Management

A parcel company currently runs direct linehaul trucks between every pair of its 20 branches. It replaces them with a single national hub, so each branch sends one truck to the hub and one back. Which outcome should the company expect?

  1. Higher service frequency between every pair of cities served
  2. Fewer linehaul links and better vehicle fill, but longer transit and more handling Correct answer.
  3. The same number of linehaul links with lower vehicle utilisation per truck
  4. Shorter transit times and fewer handling points because no intermediate hub is used

Explanation

Routing all branch-to-branch flows through one hub replaces many direct links with a few high-volume ones, which improves vehicle fill and reduces linehaul cost per parcel. The parcel now travels further and is handled again at the hub, so transit time lengthens and handling cost rises, which is the classic network trade-off.

Question 28Fundamentals of Logistics and Supply Chain Management

Which of the following activities carried out at a distribution centre is a value-added service rather than basic storage or movement?

  1. Labelling prices and kitting gift packs to a retailer's order Correct answer.
  2. Unloading incoming pallets from a supplier's delivery truck
  3. Loading outbound roll cages into the delivery van
  4. Moving cartons from the receiving dock to a storage rack

Explanation

Value-added services change the product or its presentation for a particular customer after it reaches the facility; price labelling and gift kitting are performed on the retailer's order and add value beyond mere storage. Receiving, put-away and dispatch are the basic handling functions that every warehouse performs.

Question 29Fundamentals of Logistics and Supply Chain Management

A wholesaler expects annual demand of 12,000 units of an item. Each order costs ₹500 to place and process, and holding one unit for a year costs ₹30. Using the economic order quantity formula, what is the EOQ?

  1. 632 units Correct answer.
  2. 200 units
  3. 400 units
  4. 800 units

Explanation

The EOQ formula is the square root of 2DS divided by H, where D is annual demand, S is ordering cost and H is annual holding cost per unit. Substituting gives the square root of (2 × 12,000 × 500 ÷ 30), which equals the square root of 400,000, or about 632 units, the order size at which ordering and holding costs balance.

Question 30Fundamentals of Logistics and Supply Chain Management

A paint company now produces only base white paint at its factory, ships it in bulk to regional depots, and adds the customer's chosen colour and pack size only after the order is received. Which supply chain strategy does this illustrate?

  1. Vendor-managed inventory
  2. Drop shipping
  3. Postponement (delayed differentiation) Correct answer.
  4. Cross-docking

Explanation

Postponement keeps a generic product at a factory or depot and completes the differentiating step, here tinting and final packing, only once the customer's order is known. This cuts the variety of finished stock carried while still offering a wide range, whereas cross-docking, VMI and drop shipping do not delay the differentiation step itself.

Question 31Logistics Documentation and Record Keeping

Which transport document is issued by the carrier to acknowledge receipt of goods for shipment and, when negotiable, can be endorsed to transfer the right to claim the goods?

  1. Goods received note
  2. Packing list
  3. Commercial invoice
  4. Bill of lading Correct answer.

Explanation

A bill of lading is issued by the carrier or its agent after goods are taken in charge. It evidences the contract of carriage, acts as a receipt for the cargo, and in negotiable form operates as a document of title that can be endorsed to another party.

Question 32Logistics Documentation and Record Keeping

A documentation assistant is preparing a shipment file and needs a document that lists the contents, quantity, weight and package marks of each carton but does not disclose selling prices. Which document should be placed in the file?

  1. Bill of lading
  2. Packing list Correct answer.
  3. Commercial invoice
  4. Certificate of origin

Explanation

The packing list is prepared by the seller to describe how the consignment is packed, carton by carton. It supports cargo handling, customs inspection and receipt reconciliation at destination, and it deliberately omits prices so that commercial terms stay confidential.

Question 33Logistics Documentation and Record Keeping

Which warehouse record is raised after an incoming delivery has been counted and inspected, so that stock records can be updated and the supplier's payment can be processed?

  1. GRN Correct answer.
  2. Bin card
  3. Purchase order
  4. Gate pass

Explanation

The goods received note, abbreviated GRN, is prepared by the receiving warehouse after physical verification of the delivery. It records the accepted quantity plus any shortage or damage, and it becomes the basis for updating stock records and clearing the supplier's bill for payment.

Question 34Logistics Documentation and Record Keeping

Under GST, an e-way bill must generally be generated before a consignment moves in a vehicle when its value exceeds which threshold?

  1. ₹5,00,000
  2. ₹1,00,000
  3. ₹10,000
  4. ₹50,000 Correct answer.

Explanation

The GST e-way bill rules require generation of an e-way bill when the consignment value in a vehicle exceeds fifty thousand rupees. That value is taken from the tax invoice or challan accompanying the goods, and movement should not proceed without a valid bill.

Question 35Logistics Documentation and Record Keeping

A truck carrying an e-way-bill consignment breaks down and the goods are transhipped to another vehicle midway. What is the correct documentation step?

  1. Make no change because the invoice is unchanged
  2. Raise a revised tax invoice showing the new vehicle
  3. Cancel the e-way bill and generate a fresh one
  4. Update Part B with the new vehicle number Correct answer.

Explanation

Part B of the e-way bill carries the conveyance details. When goods are transhipped, the transporter must enter the new vehicle number in Part B before the consignment continues, while the invoice and Part A particulars remain as originally declared.

Question 36Logistics Documentation and Record Keeping

Which document certifies the country in which goods were wholly obtained or substantially transformed, and is commonly attested by a chamber of commerce to support a preferential duty claim?

  1. Bill of exchange
  2. Marine insurance policy
  3. Shipping bill
  4. Certificate of origin Correct answer.

Explanation

A certificate of origin identifies the country of origin of the goods and is usually attested by a chamber of commerce or another designated authority. Importing countries rely on it to decide whether preferential tariff treatment under a trade agreement applies.

Question 37Logistics Documentation and Record Keeping

Stock is issued from a warehouse against a specific production order. Which document authorises and records that release so that the bin card and stock ledger can be updated?

  1. Stock valuation report
  2. Material issue note Correct answer.
  3. Bin card
  4. Purchase requisition

Explanation

A material issue note authorises the store to release a stated quantity to a named production order or department. It captures the date, quantity and authorisation, allowing the bin card and stock ledger to be updated against that cost centre.

Question 38Logistics Documentation and Record Keeping

A consignment arrives with three cartons short against the delivery challan. Which action best protects the buyer's claim and keeps the stock record accurate?

  1. Refuse the entire consignment and return it without preparing any receipt record
  2. Accept the cartons and adjust the shortage against the customer's next order
  3. Note the shortage on the GRN and carrier copy, then claim Correct answer.
  4. Sign the challan as received in full and report the shortage by email the next day

Explanation

A shortage must be documented at the moment of receipt on both the buyer's goods received note and the carrier's copy of the transport document, with the delivering driver's signature. This contemporaneous evidence supports a carrier or insurance claim and stops the stock record from showing cartons that never arrived.

Question 39Logistics Documentation and Record Keeping

Which export document is filed with Indian customs, carries the exporter's declaration and drawback particulars, and provides the basis for the export manifest?

  1. Commercial export invoice
  2. Mate's receipt
  3. Shipping bill Correct answer.
  4. Ocean bill of lading

Explanation

The shipping bill is the statutory export declaration filed with Indian customs. It sets out the goods, exporter, destination and any drawback or incentive claim, and customs uses it to assess and permit the export before the manifest is finalised.

Question 40Logistics Documentation and Record Keeping

A freight forwarder consolidates cargo and issues its own bill of lading to the shipper, while the shipping line issues a separate bill to the forwarder. Which option correctly identifies these two documents?

  1. House B/L from carrier to shipper; master B/L from forwarder to carrier
  2. House B/L from shipper to carrier; master B/L from consignee to forwarder
  3. House B/L from customs to exporter; master B/L from carrier to importer
  4. House B/L from forwarder to shipper; master B/L from carrier to forwarder Correct answer.

Explanation

In a consolidated shipment the freight forwarder issues the house bill of lading to the actual shipper. The shipping line then issues the master bill of lading to the forwarder, so the two documents describe the same cargo but bind different contracting parties.

Question 41Logistics Documentation and Record Keeping

Which document is issued by an airline or its authorised agent to evidence the contract of carriage for an air freight shipment and is always non-negotiable?

  1. Shipping bill
  2. Mate's receipt
  3. Air waybill (AWB) Correct answer.
  4. Ocean bill of lading

Explanation

The air waybill is issued by the airline or its cargo agent and records the contract of carriage, the consignee and the chargeable weight of the consignment. Because it is not a document of title it is always non-negotiable, and the consignee named on it can take delivery without producing an endorsed original.

Question 42Logistics Documentation and Record Keeping

When a documentation assistant presents a set of documents to the bank under a documentary letter of credit, against which standard are those documents examined?

  1. The carrier's trading conditions
  2. The credit terms and UCP 600 Correct answer.
  3. The buyer's verbal instructions
  4. Only the exporter's commercial invoice

Explanation

Under UCP 600, banks examine a presentation strictly against the terms of the credit and the articles of UCP 600 itself, and not against the underlying sale contract or informal instructions. Any document that does not comply with the credit is treated as discrepant and may be refused.

Question 43Logistics Documentation and Record Keeping

Which code, issued by the DGFT, must be quoted on export documentation before Indian customs will clear a shipment from Punjab for export?

  1. IEC (Importer-Exporter Code) Correct answer.
  2. AD code
  3. GSTIN
  4. PAN

Explanation

The Importer-Exporter Code is the ten-character code allotted by the Directorate General of Foreign Trade and is mandatory for any import or export transaction. It is quoted on the shipping bill, commercial invoice and bank documents, and customs will not process a consignment without a valid IEC.

Question 44Logistics Documentation and Record Keeping

A transporter collects a consignment from a Ludhiana factory and issues a lorry receipt (LR) to the driver. Which statement correctly describes the LR?

  1. It is issued by the consignee after unloading to confirm that goods arrived in good order.
  2. It is a customs declaration that replaces the shipping bill for inland movement.
  3. It is a negotiable document of title that the consignee must endorse to obtain delivery.
  4. It records the goods taken over by the carrier and is normally non-negotiable. Correct answer.

Explanation

The lorry receipt, also called a consignment note, is issued by the road carrier when it takes charge of the goods and shows consignor, consignee, quantity and freight terms. It is evidence of the carriage contract and of receipt, but unlike a negotiable bill of lading it is not a transferable document of title.

Question 45Logistics Documentation and Record Keeping

Cartons are loaded with visibly torn packaging and the carrier adds the remark 'packaging torn, contents exposed' on the bill of lading. The letter of credit calls for a clean shipped on board bill of lading. What is the documentary consequence?

  1. The exporter can delete the remark by endorsing the bill.
  2. Banks will treat the bill as claused and may refuse it as discrepant. Correct answer.
  3. The remark is ignored because the bill is still shipped on board.
  4. The remark converts the bill into a charter party bill of lading.

Explanation

A bill of lading bearing a clause that expressly declares the defective condition of the packing is a claused or unclean bill, and it does not satisfy a credit requirement for a clean bill. Banks check only the face of the document, so the credit is not met and the presentation becomes discrepant.

Question 46Logistics Documentation and Record Keeping

Under the GST law, for how long must a registered person ordinarily retain invoices, credit notes and connected records?

  1. Five years from the date of GST registration
  2. Seventy-two months from the due date of furnishing the annual return Correct answer.
  3. Twelve months from the date of issue of the invoice
  4. Ten years from the end of the financial year

Explanation

Section 36 of the CGST Act requires records to be retained for seventy-two months from the due date of furnishing the annual return for the year concerned. Where the record relates to an ongoing proceeding, it must be kept until one year after the final disposal of that proceeding.

Question 47Logistics Documentation and Record Keeping

Customs examines and values an export consignment at an inland container depot and then authorises loading of the goods. Which endorsement on the shipping bill marks that authorisation?

  1. Let Export Order (LEO) Correct answer.
  2. Bill of entry
  3. Mate's receipt
  4. Transhipment permit

Explanation

After examination and valuation, the proper officer grants a Let Export Order on the shipping bill, and only then may the goods be loaded. The LEO is generated on ICEGATE and is the customs clearance evidence that precedes loading and the mate's receipt.

Question 48Logistics Documentation and Record Keeping

An exporter holds a bill of lading made out 'to order' and endorsed in blank, and the buyer wishes to resell the cargo to a third party while the vessel is still at sea. What makes this resale possible?

  1. The mate's receipt has already been surrendered to the carrier.
  2. The air waybill in the file transfers ownership to the buyer.
  3. The certificate of origin names the third party as consignee.
  4. It is a document of title, transferable by endorsement and delivery. Correct answer.

Explanation

A negotiable bill of lading is a document of title, so the lawful holder can pass the right to take delivery by endorsing and delivering it. This allows the goods to be traded afloat, and the carrier releases the cargo to whoever presents the duly endorsed original bill.

Question 49Logistics Documentation and Record Keeping

A container overstays free time inside the terminal yard and, after collection, the consignee keeps the carrier's container at his godown beyond the allowed period. Which pair correctly names the two charges?

  1. Demurrage inside the terminal; detention after it leaves the terminal. Correct answer.
  2. Demurrage and detention both apply only while cargo is on the vessel.
  3. Wharfage inside the terminal; demurrage after it leaves the terminal.
  4. Detention inside the terminal; demurrage after it leaves the terminal.

Explanation

Demurrage is charged when a container or cargo exceeds free time inside the port or terminal, and detention is charged when the carrier's equipment is held outside the terminal beyond free time. Recording the free-time expiry dates in the shipment file helps the documentation assistant verify and dispute such invoices.

Question 50Logistics Documentation and Record Keeping

After an export consignment is shipped and payment is received, the exporter's bank generates a document on the DGFT portal confirming that the export proceeds have been realised. By what name is it known?

  1. An electronic bank realisation certificate Correct answer.
  2. A mate's receipt signed by the master
  3. A shipping bill copy stamped by customs
  4. A transhipment permit issued at the port

Explanation

The electronic bank realisation certificate is generated by the authorised dealer bank on the DGFT/ICEGATE portal once the export proceeds are realised. Exporters rely on it to claim duty drawback, RoDTEP and other incentives, so it must be obtained and filed with the shipping documents.