Supply Chain-Incoterm

Question 1

What is Incoterm?

Answer 1

International Commercial Terms are a series of pre-defined commercial terms that are widely used in procurement processes.

Question 2

FCA

Answer 2

Free carrier- The supplier is responsible for the shipment of goods to prearranged place. It is understood that the receiving buyer will be responsible for unloading the goods.

Question 3

DAT

Answer 3

Delivered at Terminal – The supplier is responsible for all fees including export fees, carriage, unloading, etc. and all of the risk up to the port of destination or terminal.

Question 4

DDP

Answer 4

Delivered Duty Paid – Seller is responsible for entire process. Including delivering the goods to the named place of the country for the buyer and is responsible for all import duties and taxes.

Question 5

EXW –

Answer 5

Ex Works – This term places the maximum obligation on the buyer and minimum obligation on the seller. The seller is responsible for making the material available at their loading premises and that is essentially it.

Question 6

CPT –

Answer 6

Carriage paid to –Seller pays for the carriage of the goods up to the named place of destination. Risk transfers to buyer upon handing over goods to the carrier in the country of export. The shipper is not responsible for shipment to final destination.