O-LevelCommerceTransport7100/22 · May/June 2021 · Q118 Marks

Fig. 1.1 shows freight forwarders unloading cargo at a seaport. [Figure 1.1] Use Fig. 1.1 to help you answer the following questions.

(a)(i)Identify the type of ship shown in Fig. 1.1.[1]
(a)(ii)Give an example of mechanised equipment used to unload cargo.[1]
(b)Explain, using an example, the importance of effective communication between a seaport and a ship at sea.[2]
(c)Explain one action that consumers can take to reduce plastic pollution.[2]
(d)Circle the correct answer to complete each of the following sentences. The insurance of ships is called marine OR travel. Freight forwarders help with logistics OR currencies.[2]
(e)(i)Do you think customs authorities play a useful role in trade? Give reasons for your answer.[4]
(e)(ii)Evaluate the importance of bonded warehouses in international trade.[6]

This question uses a diagram from the original paper, which isn't shown here. Open the full paper from the past papers archive to see it.

Mark scheme

Marking points from the official mark scheme (May/June 2021). The mark or mark type is shown in brackets.

1(a)(i) 1 Cargo / cargo liner / container / containerisation
1(a)(ii) 1 Crane/derrick
Forklift/lift/lifting gear
Elevator
Conveyor belt
Gantry
Tractor / trailer
Pulley
Jacks
1(b) 2 If there is poor weather / danger at sea / mechanical breakdown / ship in danger of sinking / member of crew is ill / sea conditions are poor (1) it is important to communicate effectively so the details of the issue are known / so that the issue can be resolved / so that help can be provided / so there is no misunderstanding / have better understanding / receive information / so accurate feedback is given / so that the ship can get to the seaport safely (1)
The seaport is congested / other ships entering the seaport (1) needs to inform the ship to stay out at sea / inform ship of danger (1)
The location of the ship (1) so that the seaport can estimate arrival time (1)
1(c) 2 Avoid/reduce/refuse use of plastics (1) e.g. plastic bags / water bottles / plastic cups / straws (1)
Buy or reuse/carry reusable versions of plastic goods (1) e.g. reusable grocery bags / bottles / coffee cups (1) instead of throwing it away (1)
Recycle (1) so that the goods can be used again (1) in a recycling bin/centre (1)
Participate in a beach/river clean-up (1) by collecting plastic waste (1)
Avoid buying products containing micro beads (1) by looking at the contents of goods such as face scrubs / cosmetics (1)
Use biodegradable materials (1) e.g. paper
Do not buy wrapped fruit from supermarket (1) buy loose fruit (1)
Do not throw plastic into ocean (1) recycle / put into a bin (1)
Replace plastic at home (1) e.g. use glass jars (1)
Join a pressure group / boycott (1) to support cutting of plastic use (1)
Share images on social media (1) make people aware of the problem (1)
Dispose of plastic safely (1) into a recycling bin (1)
1(d) 2 The insurance of ships is called marine.
Freight forwarders help with logistics.
1(e)(i) 4 Yes - inspect documents / goods (1) use of scanners (1) to prevent dangerous goods from entering the country (1) e.g. firearms (1) control illegal immigration (1) control smuggling of goods (1) e.g. drugs (1) manage health regulations (1) enforce quarantine regulations (1) collect customs duties (1) to help revenue for the country (1) enforce quotas (1) keep records/statistics of imports/exports (1) to calculate balance of trade (1) to see if the country is in surplus / deficit (1) supervise bonded warehouses (1) risks from trade are reduced (1)
No - can cause complexity in the clearance of goods (1) leading to delays (1) affecting delivery (1) trade can be disrupted (1)
1(e)(ii) 6 Up to 2 marks for describing bonded warehouses
Up to a further 2 marks for analysing the importance of bonded warehouses in international trade
Up to a final 2 marks for evaluating whether bonded warehouses are important in international trade
A bonded warehouse is a warehouse in which goods that would normally be subject to import or excise tariffs may be stored, manipulated or undergo further manufacturing, without the payment of duty. These taxes only become due once the products are distributed or sold.
Important: Stores dutiable goods before they are used so that traders prepare goods for sale; Payment of duty is postponed which helps the importer save on working capital; Helping imported/re-exported goods to be stored; Goods can be left to mature, such as cheese, so that they can be saleable; Goods can be sold in bond with payment being made by the buyer which saves the importer from paying duties; Goods for re-export can be kept leading to refund of duty; Have high levels of security; Located near ports of entry therefore making distribution easier
Not important: In free trade area / when goods not dutiable because no duties are paid; For goods that just require storage therefore they do not need further re-packaging; Goods requiring storage for security would just use a general warehouse; Seasonal goods can just use ordinary warehouse; Some goods more suited to other warehouses, e.g. cash and carry
Evaluation: Bonded warehouses are very important to importers who have to store dutiable goods and only pay the duty once the goods move out of the warehouse. This helps the importer with their cash flow and allows time to find a buyer.