incoterms

Question 1

ex-works (EXW)

Answer 1

Price quoted covers costs only at the point of origin, all other charges are the buyer’s concern

Question 2

Free carrier (FCA)

Answer 2

Seller delivers the goods to the carrier at the seller’s premises or another named place; risk passes to the buyer at that point

Question 3

Carriage Paid to (CPT)

Answer 3

Seller delivers the goods to the carrier and pays the costs of carriage

Question 4

Carriage and insurance paid to (CIP)

Answer 4

Seller must contract for and pay the costs of carriage and for insurance coverage against the buyer’s risk of loss or damage to the goods during carriage

Question 5

Delivered at Terminal (DAT)

Answer 5

Seller delivers when the goods are placed at the disposal of the buyer at a named terminal at the named port; seller bears all risks involved in bringing the goods to and unloading them at the terminal

Question 6

Delivered at Place (DAP)

Answer 6

Seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the destination; seller bears all risk

Question 7

Delivered Duty Paid (DDP)

Answer 7

Seller bears all costs and risks involved in bringing the goods to the place of destination and has an obligation to clear the goods for export and import, to pay any duty for both, and to carry out all customs formalities

Question 8

Free alongside ship (FAS)

Answer 8

At named U.S. port of export
Price includes cost of goods and charges for delivery of the goods alongside the shipping vessel; the buyer is responsible for the cost of loading onto the vessel, transportation, and insurance

Question 9

Free on Board (FOB)

Answer 9

At a named inland point, at a named port of exportation, or at a named vessel and port of export
The price includes the cost of the goods and delivery to the place named

Question 10

Cost and Freight (CFR)

Answer 10

• To a named overseas port
• Includes the cost of the goods and transportation costs to the named place of debarkation; the cost of insurance is borne by the buyer

Question 11

Cost insurance and freight (CIF)

Answer 11

Cost, insurance, and freight
To a named overseas port of import; includes the costs of goods, insurance, and all transportation and miscellaneous charges to the named place of debarkation