LML4808

SOUTH AFRICAN LAW OF INTERNATIONAL TRADE

(SPECIAL EXAMINATION)

Marks: 100

(Portfolio: open book examination)

First Examiner: Ms E Mbiriri

Second Examiner: Prof JP van Niekerk

The paper consists of 5 pages

PLEASE READ THE FOLLOWING INSTRUCTIONS CAREFULLY BEFORE

ANSWERING THE EXAMINATION QUESTIONS.

1. Answer ALL of the questions very briefly and with reference to the relevant
authority.

2. Your portfolio must be submitted via myUnisa on Tuesday 6 t h Februar y

2018 on or before 23h59 (Central African Time). If you registered in 2016 and the
LML4808 tab is inactive on myUnisa, email your portfolio to Ms Mbiriri
(mbirie@unisa.ac.za) on or before 23h59 (Central African Time) on 6 t h February
2018. LATE SUBMISSIONS WILL NOT BE MARKED.

3. Your portfolio should be at most 3 000 words (which includes the cover page and
the footnotes but excludes the bibliography, the academic integrity declaration, and the
word count screen dump).

3.1 Your answers should be typed (not handwritten) in Arial font, size 12 with
single line spacing within the paragraph, and double line spacing after the paragraph.
Your footnotes must be in Arial 10 point font with single line spacing within the paragraph
as well as after the paragraph.

3.2 The text must be justified.

3.3 All of the pages must be numbered in the bottom of the page.

3.3 The text should be typed using South African English and not American
English. For example, the correct spelling is “Labour” and not “Labor”. Do not use
abbreviations or SMS language.

3.5 All quotes that are two lines long (or less), must form part of the main text, be
written in italics, and be bracketed by quotation marks. Where a quotation is longer than
two lines, it must be typed in a separate paragraph in italics in size 11 font and must
be indented by 1 cm. No quotation marks are required when the quotations stands alone.
Use quotations very sparingly. In this portfolio, a maximum of 5% of the text may be
 LML4808

quoted.

4. The cover page must include your name, student number and the module
code.

5. Please read, complete and sign the attached academic integrity declaration
form, and include it in your portfolio. Your portfolio will not be marked if you fail to
include a signed copy of this form with your portfolio.

6. After finalising your portfolio in Word (or any other processing program that
you are using) but before saving your portfolio as a PDF document and submitting it on
myUnisa, take a screen dump of the word count, the date and the time, and include a
copy of this screen dump in your portfolio.

7. Ensure that you give reasons for each answer. Substantiate by referring to
ALL of the relevant authorities, e.g. sections from the relevant legislation
and/or court cases. The length of your answers should be proportionate to the
marks allotted to the questions.

8. PLEASE DO NOT CUT AND PASTE ANSWERS FROM THE STUDY GUIDE
(OR ANY OTHER OURCE). AVOID WIKIPEDIA AS IT IS NOT A PEER REVIEWED
RESEARCH ENGINE.

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QUESTION 1

(a) Explain the duration of the period of prescription of debts relating to duties payable
in terms of the Customs and Excise Act.
(2)

(b) Briefly describe the nature of excise duties.

(2)

(c) Explain the role of a bill of entry for export.

(2)

(d) Explain when duties are payable on goods brought into South Africa for
warehousing.
(2)

(e) Explain the difference between the rebate on a duty and the refund or drawback
on a duty.
(2)

(f) Write a short note:

(i) on the decisions in Orange River Export (Pty) Ltd v TDC International Fruit
Frais du Monde Inc [2005] 1 All SA 764 (NC) and Nuclear fuels Corp of SA
(Pty) Ltd v Orda AG 1996 (4) SA 1190 (A).
(15)

OR

(ii) on the differences between a contract of sale and a contract of exchange

and on how the Companies Act 71 of 2008, as amended, deals with external
and foreign companies.
(15)
[30]

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QUESTION 2

(a) Explain why it is that the involvement of a South African national as a party to an
international sale does not necessarily mean that a South African court has
jurisdiction or that South African municipal law applies to that contract or that South
African private international law applies to determine the proper law of that
contract.
(5)

(b) Identify five so-called “connecting factors” that may be relevant in determining the
assigned proper law of an international contract.
(5)

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(c) Although an international contract of sale on FOB and one on CIF terms are both
so-called “shipment contracts”, they nevertheless involve quite different obligations
being imposed on the seller both as regards the carriage and the insurance of the
goods sold. Discuss.
(5)

(d) Explain the passing of risk in terms of an international sale of goods to be carried
by sea.
(5)
[20]

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QUESTION 3

(a) In the event of a so-called “inward carriage”, s 3(1) of the Carriage of Goods by
Sea Act controversially renders nugatory any clause excluding the possibility of
the local litigation or arbitration of disputes arising from such carriage. Explain the
scope of this measure.
(5)

(b) Discuss the fact that evidentiary value of a bill of lading is much reduced if the bill
is claused or received.
(5)

(c) In terms of the Carriage of Goods by Sea Act a carrier’s liability is neither absolute
nor unlimited. Explain why and how this is the case.
(5)

(d) The statement that a bill of lading is a document of title is not strictly true. Explain.
(5)

[20]

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QUESTION 4

(a) In the case of marine insurance on goods sold and to be carried by sea, either the
seller or the buyer or even both of them may validly insure the goods. Explain.
(5)

(b) Name the requirements for a valid contract of marine insurance and also the
essential features of such a contract.
(5)

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(c) Explain the role of a floating policy in the case of the insurance of goods sold on
CIF terms.
(5)

(d) A marine insurer incurs no liability for the loss of or damage to insured goods
caused by inherent vice. Explain the reason and scope of this exclusion.
(5)
[20]

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QUESTION 5

(a) Name five methods of payment in international trade.

(5)

(b) A documentary letter of credit is but one type of letter of credit. Name two others.
(2)

(c) A letter of credit transaction involves at least three separate contracts. Identify
them and the parties involved with each of them
(6)

(d) Explain the role of a confirming bank in a letter of credit transaction

(2)
[15]

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[TOTAL: 100]

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UNISA
2018