INCOTERMS

Question 1

Cost of goods (max obligation for buyer)

Answer 1

Ex-Works (EXW)

Question 2

The seller fulfils his obligation to deliver when
he has handed over the goods, cleared for
export, into the charge of the carrier named
by the buyer.

Answer 2

Free Carrier (FCA)

EXW + Origin O/C

Question 3

What are origin other charges?

Answer 3

Loading to Truck
Origin Inland Freight/Trucking/Haulage Costs (Pre-Carriage)
Origin Internal Insurance Costs
Export Documentation and Clearance
Export Duties and Taxes

Question 4

FCA Formula

Answer 4

EXW + ORIGIN O/C

Question 5

The seller pays the freight for the
carriage of the goods to the named
destination. The seller deliver the goods
to the custody of the carrier.

Answer 5

Carriage Paid To (CPT)

EXW + Origin O/C + Frt

Question 6

CPT Formula

Answer 6

FCA + Frt
EXW + Origin O/C + Frt

Question 7

The seller fulfills his obligation to deliver
when the goods have been placed alongside
the vessel on the quay or in lighters at the
named port of shipment cleared for export.

Answer 7

Free Alongside Ship (FAS)

EXW + Origin O/C

Question 8

The seller fulfills his obligation to deliver the
goods when the goods have been loaded on
board the carrying vessel nominated by the
buyer at the named port of shipment.

Answer 8

Free On Board (FOB)

EXW + Origin O/C

with – Total Handling Charges (THC) / Less Container Load Charges (LCL)

Question 9

The seller fulfills his obligation to deliver the
goods when the goods have been loaded on
board the carrying vessel nominated by the
buyer at the named port of shipment. The
seller pays the freight charges.

Answer 9

Cost and Freight (CFR)
FOB + Frt

Question 10

The seller fulfills his obligation to deliver the
goods when the goods have been loaded on
board the carrying vessel nominated by the
buyer at the named port of shipment. The
seller pays the freight charges and insurance.

Answer 10

Cost, Insurance, and Freight

FOB + Ins + Frt

Question 11

The seller delivers when the goods are placed
at the buyer’s disposal on the arriving means
of transport ready for unloading at the buyer’s
warehouse. The seller paid the freight
charges.

Answer 11

Delivered At Place (DAP)

FOB + Frt + Destination O/C
or
FCA + Frt + Destination
O/C

Question 12

The seller delivers when the goods are
unloaded from the arriving means of
transport at the buyer’s warehouse and
placed at the buyer’s disposal. The seller paid
the freight charges.

Answer 12

DELIVERED AT PLACE
UNLOADED (DPU)

DPU = FOB + FRT + DESTINATION O/C

DPU = FCA + FRT + DESTINATION O/C

*Destination Unloading Charges at Buyer’s Warehouse

Question 13

The seller delivers when the goods are placed
at the buyer’s disposal on the arriving means
of transport ready for unloading at the buyer’s
warehouse. The seller paid the freight
charges.

Answer 13

DELIVERED DUTY PAID
(DDP)

DDP = FOB + FRT + DESTINATION O/C

DDP = FCA + FRT + DESTINATION O/C

Question 14

Obligation: Delivery

SELLER’S WAREHOUSE OR FACTORY

Answer 14

EXW

Question 15

Obligation: Delivery

CUSTODY OF THE CARRIER

Answer 15

FCA, CPT, CIP

Question 16

Obligation: Delivery

ALONGSIDE THE VESSEL OR LIGHTER

Answer 16

FAS

Question 17

Obligation: Delivery
ON BOARD THE VESSEL

Answer 17

FOB, CFR, CIF

Question 18

Obligation: Delivery
BUYER’S WAREHOUSE OR FACTORY

Answer 18

DAP, DPU, DDP

Question 19

Applicable for Sea Transport Only

Answer 19

FAS, FOB, CFR, CIF

Question 20

APPLICABLE TO ALL MODES OF TRANSPORT

Answer 20

EXW, FCA, CPT, CIP
DAP, DPU, DDP

Question 21

INSURANCE PAID BY THE SELLER

Answer 21

CIP, CIF

Question 22

INSURANCE PAID BY THE BUYER

Answer 22

EXW, FCA, CPT, FAS, FOB
CFR, DAP, DPU, DDP