Clearing and Forwarding November 2015 Past Examination Question Paper – KNEC
This Past Paper examination was examined by the Kenya National Examination Council (KNEC) and it applies to the following course
Diploma in Road Transport Management – Module I
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THE KENYA NATIONAL EXAMINATIONS COUNCIL
DIPLOMA IN ROAD TRANSPORT MANAGEMENT
CLEARING AND FORWARDING
1. (a) Mr Hassan was recently hired as a shipping agent by a certain clearing and forwarding firm. Highlight the challenges that he may face while undertaking the clearing and forwarding duties. (10 marks)
(b) The management of a port is expected to maintain appropriate records in relation to clearing and forwarding operations.
Explain the disadvantages that may accrue to the port when it fails to maintain such records. (10 marks)
2. (a) Government regulations provides that all import and export cargo should be appropriately marked. Explain the reasons that may account for this practice. (10 marks)
(b) Clearing and forwarding agents have complained about increased cases of loss of cargo at Wote port.
Outline the measures that the management of the port should take to enhance cargo security. (10 marks)
3. (a) Shipping agents have accused the management at the port of Pwani of operating an inefficient clearing and forwarding system. Explain the ways in which the management of the port may enhance the efficiency of the system. (10 marks)
(b) Outline the type of information that a clearing and forwarding agent should obtain from exporter in order to facilitate cargo shipment. (10 marks)
4. (a) Explain the significance of the international commercial terms (INCOTERMS) to clearing and forwarding operations. (10 marks)
(b) Highlight the challenges that a customs officer may face in determining the customs duty to be paid for imported cargo. (10 marks)
5. (a) Pembe port has witnessed an increase in cargo claims in the recent past.
Outline the likely causes of such claims. (10 marks)
(b) Continental Freight Company has a consignment to be shipped from Kenya to the far East countries. Explain the factors that the company should consider in selecting the trade route to transport the cargo. (10 marks)
6. (a) Describe the types of costs that a shipping firm may incur while clearing cargo at a port. (10 marks)
(b) Explain the advantages to a clearing and forwarding firm that has opted to use containers in shipping its cargo. (10 marks)
7. (a) It is the usual practice to insure import and export cargo. Explain the reasons that may account for this practice. (10 marks)
(b) Outline the issues that a customs officer should address when verifying cargo before shipment. (10 marks)