Given below are two statements : one is labelled as Assertion (A) and the other is labelled as Reason (R). Assertion (A) : For exports of goods, the exporter has to apply to the nominated export inspection agency for conducting the pre-shipment and quality control inspection for the export consignment and obtain Export Credit Certificate conforming to the prescribed specifications. Reason (R) : This inspection certificate would be required for customs clearance of cargo before shipment. In the light of the above statements, choose the most appropriate answer from the options given below :
(A) is not correct but (R) is correct
The assertion is not correct but the reason is — option 4.
Where A goes wrong. Everything in the assertion is accurate except its final term. The exporter does apply to a nominated inspection agency for pre-shipment and quality-control inspection — but what he obtains is a Certificate of Inspection, also called the Export Inspection Certificate, issued under the Export (Quality Control and Inspection) Act, 1963 by the Export Inspection Council and its Export Inspection Agencies. It is not an “Export Credit Certificate”, which is not the name of any such document. A single wrong term makes the whole statement incorrect.
| Document | What it actually is |
|---|---|
| Certificate of Inspection | Certifies that the consignment has been inspected and conforms to the prescribed quality specifications |
| Export credit | Not a certificate at all — it is finance extended to an exporter, pre-shipment (packing credit) or post-shipment |
| ECGC cover | Insurance against non-payment, from the Export Credit Guarantee Corporation — the likely source of the confusion in the wording |
Why R is correct. The inspection certificate is one of the documents required at the customs stage: the shipping bill is filed with the supporting documents, and where the commodity is under compulsory quality control, clearance will not be given without it. So R states a true fact about the certificate — but since A is wrong, R cannot be an explanation of it, and the answer is option 4 rather than option 1.
The main export documents, for context :
| Document | Purpose |
|---|---|
| Commercial invoice and packing list | Description, value and packing of the goods |
| Shipping bill | The principal customs document for export |
| Bill of lading or airway bill | Contract of carriage and document of title |
| Certificate of origin | Where the goods were produced; needed for preferential tariffs |
| Certificate of inspection | Quality conformity |
| Marine insurance policy | Cover in transit |
| Letter of credit | The bank’s undertaking to pay |
The lesson for reading such questions : in an assertion-reason item, a statement is either wholly correct or not correct at all. One misnamed document is enough.
Hence, the answer is option 4.
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