Incoterms

Question 1

ExW (Ex Works)

Answer 1

Places minimum responsibility on the SELLER, who makes the goods available at a location. **Usually the seller promises or another named place (factory/warehouse). The seller does not need to load goods or clear them for exports.

Question 2

FCA (Free Carrier)

Answer 2

The seller is responsible for exporting the shipment, and all steps before that. The buyer assumes that responsibility for the cargo once they are ready to be loaded.

Question 3

FAS (Free Alongside Ship)

Answer 3

The seller is responsible for managing the export processes up to the point of loading the cargo onto the ship. However, the buyer takes on the subsequent stages including transportation, customs clearance, and delivery to the final destination.

Question 4

FOB (Free on Board)

Answer 4

The supplier retains ownership and responsibility for the goods until they are loaded ‘on board’ a shipping vessel. Once on the ship, all liability transfers to the buyer.

Question 5

CFR (Cost and Freight)

Answer 5

The seller is liable and responsible for all the steps in their country up to the point that all the goods are loaded on board the vessel and is also responsible - but not liable - for main carriage. Once the goods are loaded onto the vessel, the responsibility shifts to the buyer. The buyer becomes liable for the main carriage and assumes responsibility for the shipment’s safety and compliance until it reaches the final destination.

Question 6

CIF (Cost, Insurance, and Freight)

Question 7

CPT (Carriage Paid to)

Question 8

CIP (Carriage and Insurance Paid to)

Question 9

DAT (Delivered at terminal)

Question 10

DAP (Delivered at Place)

Question 11

DDP (Delivered Duty Paid)