Incoterms 2020 Flashcards
What does FCA stand for?
Free Carrier
FCA - what is the seller response for?
The seller is responsible for delivering cargo to POL and all associated requirements.
FCA - What is the buyer responsible for?
The buyer is responsible for cargo once the seller delivers the cargo to POL.
FCA - What are the sellers specific responsibilities.
The seller is responsible for:
- Export packing
- Landing charges
- Delivery to Port
- Export duty, taxes and customs clearance
FCA - What is the buyer responsible for?
Buyer is responsible for:
- Origin terminal charges
- Loading on charge
- Carriage charge
- Insurance
- Destination terminal charges
- Delivery to destination
- Unloading at Destination
- Import duty, taxes & customs clearance
What does FOB stand for?
Free on Board
FOB - What are the sellers responsibilities?
Seller is responsible for loading the purchased cargo onto a ship and all associated costs.
FOB - What are the buyer’s responsibilities?
Once the goods are loaded onboard the vessel, all the remaining responsibilities and risks transfer to the buyer.
FOB - What are the buyer’s specific responsibilities
Buyer’s specific responsibilities
- Freight charges
- Insurance
- Delivery to destination
- Unloading at destination
- Import duty, taxes and customs clearance
FOB - what are the sellers specific responsibilities
Seller’s responsibilities
- Export packing
- Loading charges
- Delivery to Port
- Export duty, taxes and customs clearance
- Origin terminal handling charges
- Loading on carriage
What are differences between FCA & FOB
Risk
Delivery Point
Mode of Transport
Specify FOB differences to FCA
- FOB - risks transfer to buyer once sellers has goods loaded on vessel
- FOB deliveries only applies to inland waterways and sea
- FOB delivery point- port of shipment acts as the delivery point
Specify FCA differences to FOB
. FCA risk transfer occurs once goods are delivered to agreed upon place
. FCA delivery point agreed between seller and buyer
. FCA mode of transport via any transport method
What does DDP stand for
Delivery Duty Paid
DDP - What the sellers responsibility
- Export packaging
- Loading charges
- Delivery to port
- Customs
- Terminal Handling
- Carriage loading
- Freight charges
- Insurance
- Destination terminal handling charges
- Delivery to destination
- Import duty, taxes, customs clearance
DDP - What are the buyer’s responsibilities?
Unloading at Destination
What does DAP stand for?
Delivered at Place
DAP - What are the sellers responsiblity?
- Export packaging
- Loading charges
- Delivery to Port
- Duty, Tax, Customs Clearance
- Origin terminal handling charges
- Loading on carriage
- Freight charges
- Insurance
- Destination terminal handling charges
- Delivery
DAP - What are the buyer’s responsibility
- Unloading at Destination
- Import Duty, Tax & Customs Clearance
Ex Works - What are the seller’s responsibility?
- Export packaging
Ex Works - What are the buyer’s responsibility?
- Loading charges
- Delivery to port
- Tax, Duty and Customs Clearance
- Origin terminal handling fee
- Carriage Loading
- Freight
- Insurance
- Terminal charges
- Delivery
- Unloading charges
- Duty, Tax, Customs Clearance charges
What are the incoterrms associated with Freight Collect?
- ExW - Ex Works or Ex-Warehouse
- FCA - Free Carrier
- FAS - Free Alongside Ship
- Free on Board
What are the incoterms associated with Freight Prepaid
- CFR - Cost and Freight
- CIF - Cost, insurance & Freight
- CPT - Carriage Paid To
- CIP - Carriage & Insurance Paid To
- DAP - Delivered at Place
- DPU - Delivered at Place Unloaded
- DDP - Delivered Duty Paid
What terms require the seller to purchase insurance
- CIF
- CIP
