Incoterms

Question 1

INCOTERM

Answer 1

International Commercial Terms, they are a set of 11 internationally recognized rules which define the responsibilities of sellers and buyers.

Question 2

The 7 Incoterms 2020 rules for ANY mode(s) of transport are:

Answer 2

EXW - Ex Works
FCA - Free Carrier
CPT - Carriage Paid to
CIP - Carriage and Insurance Paid To
DAP - Delivered at Place
DPU - Delivered at Place Unloaded
DDP - Delivered Duty Paid

Question 3

The 4 Incoterms 2020 rules for SEA and INLAND WATERWAY Transport are:

Answer 3

FAS - Free Alongside Ship
FOB - Free on Board
CFR - Cost and Freight
CIF - Cost Insurance and Freight

Question 4

Responsabilities of the supplier and the buyer in CIF

Answer 4

The goods are exported to the buyer’s port named in the sales contract. Until the goods are delivered to the buyer’s destination port, the seller bears the costs of any loss or damage to the product. Further, if the product requires additional customs duties, export paperwork, or inspections or rerouting, the seller must cover these expenses

Question 5

Responsabilities of the supplier and the buyer in DPU

Answer 5

It requires the seller to clear goods for export, where applicable, without any obligation to clear
the goods for import, pay import duty or carry out import customs formalities.

Question 6

Responsabilities of the supplier and the buyer in FOB

Answer 6

The seller’s responsibility ends when the items are placed with a shipment carrier
The buyer must ensure their goods reach their final destination on time and undamaged.

Question 7

Responsabilities of the supplier and the buyer in DDP

Answer 7

The seller assumes full responsibility for the carriage until the goods are unloaded at the designated point, as well as all associated costs and risks.

Question 8

Responsabilities of the supplier and buyer in EXW

Answer 8

The seller delivers the goods at its premises or at another designated place,
The buyer assumes the risks and costs related to the loading, transportation and dispatch of the products.

Question 9

Sales on departure

Answer 9

the merchandise will be shipped at the risk and hazard of the buyer

Question 10

Sales on departure EXW

Answer 10

From the moment that the goods are placed at disposal at the vendors premises

Question 11

Sales on departure FCA,FAS,FOB,CFR,CIF,CPT & CIP

Answer 11

From the moment that the goods are handed to the carrier in order to be shipped

Question 12

Sales on arrival

Answer 12

the merchandise will be shipped at the risk and hazard of the seller, until it reaches the designated destination point or port

Question 13

Sales on arrival DAP

Answer 13

Until the end of its maritime transportation and its disembarkation

Question 14

Sales on arrival DPU and DDP

Answer 14

Until its destination point

Question 15

To optimize your export pricing strategy, understand

Answer 15

the total or “landed” cost of your export shipment to a foreign buyer

Question 16

Buyers often ask for this information when

Answer 16

negotiating a purchase and you can provide it
on a proforma invoice

Question 17

EXW

Answer 17

Incoterm who the supplier has less responsibilities.

Question 18

DDP

Answer 18

Incoterm who the buyer has less responsibilities.

Question 19

FOB

Answer 19

The incoterm most used in the maritime transport.