Incoterms Flashcards
Incoterms were first published in ____.
1936
Incoterms 2010 is the ____ version of Incoterms.
eighth
Incoterms
International Commercial Terms
Incoterms are internationally accepted terms defining the responsibilities of _____ in the arrangement of shipments and the transfer of liability.
exporters and importers
Incoterms _____ ownership or the transfer of title of goods.
do not cover
It is crucial to agree on an Incoterm at the start of a negotiation/ quotation of a sale, as it will affect the _____.
costs and responsibilities involved in shipping, insurance and tariffs
The new Incoterms 2010 rules became effective _____.
January 1, 2011
DAF
Delivered at Frontier Named Place
DEQ
Delivered Ex Quay Named Port of Destination (Duty Paid)
DES
Delivered Ex Ship Named Port of Destination
DDU
Delivered Duty Unpaid Named Place of Destination
The four Incoterms eliminated by Incoterms 2010 were _____.
DAF, DEQ, DES, DDU
What is a quay?
a concrete, stone, or metal platform lying alongside or projecting into water for loading and unloading ships
The two Incoterms added by Incoterms 2010 are _____.
DAP and DAT
There are _____ Incoterms in Incoterms 2010.
11
Before 2010, the last Incoterms update was in _____.
2000
Inexperienced exporters may want to use the _____ Incoterm because it carries the least burden for them.
EXW
Under EXW, the seller’s responsibility ends at _____.
their loading dock
Under EXW, the seller still needs to provide any product information needed for filing _____.
the Electronic Export Information (EEI)
Under EXW, the _____ will arrange and pay for the pre-carriage, shipping, insurance and any additional costs from the exporter’s door.
buyer’s agent
Under CIF, the _____ arranges and pay for the pre-carriage, shipping, and insurance to a named port.
seller
Under CIF, the sale price (invoice) includes not only the cost of goods, but also _____.
(I)nsurance and (F)reight costs
When designating the Incoterm on a commercial invoice or a quotation to the buyer, the term should be followed by the _____.
city or port of load/discharge
The most burdensome Incoterm for the exporter is _____, because all arrangements and costs are borne by the exporter.
DDP
Under _____, the exporter bears all risks and costs of transportation, including duties and tariffs, until the goods are received by the importer, usually at the importer’s factory or warehouse.
DDP
Since ___ represents the maximum obligation to the seller, it is not recommended for companies that are new-to-export.
DDP
ICC
International Chamber of Commerce
FAS has _____ risk/liability for the exporter than FOB.
Less
FAS has _____ risk/liability for the exporter than CFR.
Less
FAS has _____ risk/liability for the exporter than CIF.
Less
FOB has _____ risk/liability for the exporter than FAS.
More
FOB has _____ risk/liability for the exporter than CFR.
Less
FOB has _____ risk/liability for the exporter than CIF.
Less
CFR has _____ risk/liability for the exporter than FAS.
More
CFR has _____ risk/liability for the exporter than FOB.
More
CFR has _____ risk/liability for the exporter than CIF.
Less
CIF has _____ risk/liability for the exporter than FAS.
More
CIF has _____ risk/liability for the exporter than FOB.
More
CIF has _____ risk/liability for the exporter than CFR.
More
FAS
Free Alongside Ship
FOB
Free On Board
CFR
Cost and Freight
CIF
Cost, Insurance and Freight
FAS applies to ____ transport.
only sea and inland waterway
FOB applies to ____ transport.
only sea and inland waterway
CFR applies to ____ transport.
only sea and inland waterway
CIF applies to ____ transport.
only sea and inland waterway
Under FAS, risk passes to buyer once delivered to _____ by the seller.
side of ship (realistically at named port terminal)
Under FAS, seller delivers goods to _____.
the origin port terminal
Under FAS, export clearance obligation rests with the _____.
seller
Under FAS, _____ is responsible for import clearance, duties and taxes.
buyer
Under FOB, risk passes to buyer once delivered _____ by the seller.
on board the ship
Under FOB, seller arranges transportation to _____.
port and loading on the ship
Under FOB, export clearance obligation rests with the _____.
seller
Under FOB, _____ is responsible for import clearance, duties and taxes.
buyer
Under CFR, seller delivers goods to _____.
the vessel
Under CFR, risk passes to buyer when _____.
on board the vessel
Under CFR, seller arranges and pays cost and freight to _____.
the named destination port
Under CFR, export clearance obligation rests with the _____.
seller
Under CFR, _____ is responsible for import clearance, duties and taxes.
buyer
Under CIF, risk passes to buyer when delivered _____.
on board the ship
Under CIF, seller arranges and pays _____ to _____.
cost, freight and insurance ; destination port
Under CIF, export clearance obligation rests with the _____.
seller
Under CIF, _____ is responsible for import clearance, duties and taxes.
buyer
EXW
Ex Works
FCA
Free Carrier
CPT
Carriage Paid To
CIP
Carriage and Insurance Paid To
DAT
Delivered at Terminal
DAP
Delivered at Place
DDP
Delivered Duty Paid
EXW applies to ____ transport.
any mode of transport
FCA applies to ____ transport.
any mode of transport
CPT applies to ____ transport.
any mode of transport
CIP applies to ____ transport.
any mode of transport
DAT applies to ____ transport.
any mode of transport
DAP applies to ____ transport.
any mode of transport
DDP applies to ____ transport.
any mode of transport
EXW has _____ risk/liability for the exporter than FCA.
Less
EXW has _____ risk/liability for the exporter than CPT.
Less
EXW has _____ risk/liability for the exporter than CIP.
Less
EXW has _____ risk/liability for the exporter than DAT.
Less
EXW has _____ risk/liability for the exporter than DAP.
Less
EXW has _____ risk/liability for the exporter than DDP.
Less
FCA has _____ risk/liability for the exporter than EXW.
More
FCA has _____ risk/liability for the exporter than CPT.
Less
FCA has _____ risk/liability for the exporter than CIP.
Less
FCA has _____ risk/liability for the exporter than DAT.
Less
FCA has _____ risk/liability for the exporter than DAP.
Less
FCA has _____ risk/liability for the exporter than DDP.
Less
CPT has _____ risk/liability for the exporter than EXW.
More
CPT has _____ risk/liability for the exporter than FCA.
More
CPT has _____ risk/liability for the exporter than CIP.
Less
CPT has _____ risk/liability for the exporter than DAT.
Less
CPT has _____ risk/liability for the exporter than DAP.
Less
CPT has _____ risk/liability for the exporter than DDP.
Less
CIP has _____ risk/liability for the exporter than EXW.
More
CIP has _____ risk/liability for the exporter than FCA.
More
CIP has _____ risk/liability for the exporter than CPT.
More
CIP has _____ risk/liability for the exporter than DAT.
Less
CIP has _____ risk/liability for the exporter than DAP.
Less
CIP has _____ risk/liability for the exporter than DDP.
Less
DAT has _____ risk/liability for the exporter than EXW.
More
DAT has _____ risk/liability for the exporter than FCA.
More
DAT has _____ risk/liability for the exporter than CPT.
More
DAT has _____ risk/liability for the exporter than CIP.
More
DAT has _____ risk/liability for the exporter than DAP.
Less
DAT has _____ risk/liability for the exporter than DDP.
Less
DAP has _____ risk/liability for the exporter than EXW.
More
DAP has _____ risk/liability for the exporter than FCA.
More
DAP has _____ risk/liability for the exporter than CPT.
More
DAP has _____ risk/liability for the exporter than CIP.
More
DAP has _____ risk/liability for the exporter than DAT.
More
DAP has _____ risk/liability for the exporter than DDP.
Less
DDP has _____ risk/liability for the exporter than EXW.
More
DDP has _____ risk/liability for the exporter than FCA.
More
DDP has _____ risk/liability for the exporter than CPT.
More
DDP has _____ risk/liability for the exporter than CIP.
More
DDP has _____ risk/liability for the exporter than DAT.
More
DDP has _____ risk/liability for the exporter than DAP.
More
Under EXW, seller delivers the goods at disposal of buyer at _____.
seller’s premisis
EXW _____ loading at seller’s premisis.
does not include
___ has long held as the most preferable term for those new-to-export because it represents the minimum liability to the seller.
EXW
For EXW routed transactions, the buyer has _____ obligation to provide export information to the seller.
limited
Under EXW, export clearance obligation rests with the _____.
buyer
Under EXW, _____ is responsible for import clearance, duties and taxes.
buyer
Under FCA, seller delivers the goods to _____.
the carrier
FCA _____ loading at seller’s premisis.
includes
Under FCA, export clearance obligation rests with the _____.
seller
_____ is more realistic than _____ because it includes loading at pick-up, which is commonly expected, and sellers are more concerned about export violations.
FCA, EXW
Under FCA, _____ is responsible for import clearance, duties and taxes.
buyer
Under CPT, seller delivers goods to the carrier at _____.
an agreed place, shifting risk to the buyer
Under CPT seller must pay cost of carriage to _____.
the named place of destination
Under CPT, _____ is responsible for import clearance, duties and taxes.
buyer
Under CPT, export clearance obligation rests with the _____.
seller
Under CIP, seller delivers goods to _____.
the carrier at an agreed place, shifting risk to the buyer
Under CIP, seller pays carriage and insurance to _____.
the named place of destination
Under CIP, _____ is responsible for import clearance, duties and taxes.
buyer
Under CIP, export clearance obligation rests with the _____.
seller
Under DAT, seller bears cost, risk and responsibility until goods are _____.
unloaded (delivered) at named quay, warehouse, yard, or terminal at destination
Under DAT, _____ charges may apply to seller.
demurrage or detention
DAT replaces _____.
DEQ, DES
DEQ was replaced by _____.
DAT
DES was replaced by _____.
DAT
Under DAT, _____ is responsible for import clearance, duties and taxes.
buyer
Under DAT, export clearance obligation rests with the _____.
seller
Under DAP, seller bears cost, risk and responsibility for goods until _____.
made available to buyer at named place of destination
Under DAP, export clearance obligation rests with the _____.
seller
Under DAP, _____ is responsible for import clearance, duties and taxes.
buyer
DAP replaces _____.
DAF, DDU
DAF was replaced by _____.
DAP
DDU was replaced by _____.
DAP
Under DDP, seller bears _____ at named place of destination at buyers disposal.
cost, risk and responsibility for cleared goods
Under DDP, _____ is responsible for unloading.
buyer
Under DDP, export clearance obligation rests with the _____.
seller
Under DDP, _____ is responsible for import clearance, duties and taxes.
seller
Under DDP, _____ is not the importer of record.
buyer
Incoterms _____ determine ownership or transfer title to the goods
do not
Incoterms _____ evoke payment terms.
do not
Incoterms _____ apply to service contracts.
do not
Incoterms_____ define contractual rights or obligations (except for delivery) or breach of contract remedies.
do not
Incoterms _____ protect parties from their own risk or loss.
do not
Incoterms _____ cover the goods before or after delivery.
do not
Incoterms _____ specify details of the transfer, transport, and delivery of the goods.
do not
Container loading is NOT considered _____.
packaging
Container loading must be addressed in the _____.
sales contract
Incoterms _____ law.
are not
The default Incoterm is _____.
There is no default Incoterm.
