Incoterms to know

Question 1

EXW ex works

Answer 1

Places most responsibility with te buyer. Seller is expected to have the goods ready for collection the agreed place of delivery.

Question 2

FCA Free carrier

Answer 2

A trade term dictating that a seller of goods is responsible for the delivery of those goods to a destination specified by the buyer.

Question 3

CIP Carriage and insurance paid to

Answer 3

Costs and insurance are for the seller risks transfer to the buyer in the transport vehicle

Question 4

DDP Delivered duty paid

Answer 4

The seller assumes all responsibilities and costs for delivering the goods to the named place of destination

Question 5

FOB free on board

Answer 5

Seller clears the goods for export and ensures they are delivered to and loaded onto the vessel for transport

Question 6

CIF Cost, insurance and freight

Answer 6

International shipping agreement used when freight is shipped via sea or waterway. Seller is responsible for the costs, insurance and freight of the buyer’s shipment while in transit.