Shipping and Maritime Law Question and Answers — Questions and Answers

Question 1: What exactly do you mean by "INCOTERMS"?

What carrier is transporting the product.
What country is paying the duty tax.
What party or person is paying the duty tax. (Correct answer)

Correct answer: What party or person is paying the duty tax.

INCOTERMS (International Commercial Terms) are a set of globally recognized rules that define the responsibilities of buyers and sellers for the delivery of goods under sales contracts. They specify who is responsible for paying and managing the shipment, insurance, documentation, customs clearance, and crucially, duty taxes at various stages of the shipping process. Therefore, they clarify which party bears the cost and risk for specific aspects, including duty taxes.

Question 2: If the transportation of this kind of goods is connected to:

dangerous good declaration
dangerous goods
flammable products declare (Correct answer)
none of the above

Correct answer: flammable products declare

This question, though incomplete, implies the necessary declaration for certain types of goods during transportation. 'Flammable products declare' refers to the mandatory declaration required for dangerous goods, particularly those that are flammable. International maritime regulations, such as the IMDG Code, mandate strict procedures for declaring, labeling, and handling such products to ensure safety during transport.

Question 3: Under the doctrine of innocent passage, foreign ships are permitted to enter the territorial waters of other countries, with the exception of

come with peace (Correct answer)
fishing
practice
spying

Correct answer: come with peace

The doctrine of innocent passage, as defined by UNCLOS, permits foreign ships to navigate through a state's territorial waters provided the passage is 'innocent,' meaning it is not prejudicial to the peace, good order, or security of the coastal state. Activities like fishing, military practice, or spying are explicitly considered non-innocent and thus exceptions to this permission. 'Come with peace' is not an exception but rather the fundamental *condition* that must be met for passage to be considered innocent and therefore permitted.

Question 4: The following risks are not included in all risks:

collision insurance
theft, non-delivery insurance
leakage insurance
non-delivery insurance (Correct answer)

Correct answer: non-delivery insurance

'All risks' insurance in maritime cargo typically covers a broad range of perils causing physical loss or damage, such as collision, theft, or leakage. However, 'non-delivery insurance' usually refers to a specific type of coverage for the failure to deliver goods, which might stem from causes not necessarily covered by standard 'all risks' physical damage policies, such as administrative errors or commercial disputes. It often requires separate or specialized coverage.

Question 5: True or False: For a very long time, shipping has been acknowledged as one of the major drivers of socioeconomic progress.

False
True (Correct answer)

Correct answer: True

Shipping has historically been, and continues to be, the backbone of international trade and globalization. It facilitates the movement of raw materials, manufactured goods, and energy across continents, connecting markets and enabling economic growth. This extensive global network has profoundly contributed to the socioeconomic development of nations worldwide by fostering trade, creating jobs, and driving industrialization.

Question 6: Which of the following claims regarding marine surveyors is TRUE?

Marine surveyors conduct thorough and extensive surveys of a canal.
Marine surveyors can inspect all types of ships. (Correct answer)
Marine surveyors inspect pleasure yachts only.
Marine surveyors arrange port procedures for ships

Correct answer: Marine surveyors can inspect all types of ships.

Marine surveyors are professionals who conduct inspections, surveys, and assessments of marine vessels and their cargo. Their expertise is broad, covering various types of ships, from small pleasure yachts to large commercial tankers, cargo ships, and offshore structures, to ensure compliance with safety, regulatory, and contractual standards. They do not exclusively inspect pleasure yachts, nor are their duties limited to canal surveys or arranging port procedures.

Question 7: True or False: Each country has the authority to exploit natural resources within its exclusive economic zone (EEZ)

False (Correct answer)
True

Correct answer: False

While a coastal state has sovereign rights to explore and exploit natural resources within its Exclusive Economic Zone (EEZ), this authority is not absolute for *each* country. Landlocked countries, for instance, do not have an EEZ. Furthermore, the rights within an EEZ are subject to the provisions of UNCLOS, including the rights and duties of other states, meaning not every country possesses or has unfettered authority over an EEZ.

Shipping and Maritime Law Question and Answers

What exactly do you mean by "INCOTERMS"?