Incoterms Flashcards
1
Q
Incoterms were first published in ____.
A
1936
2
Q
Incoterms 2010 is the ____ version of Incoterms.
A
eighth
3
Q
Incoterms
A
International Commercial Terms
4
Q
Incoterms are internationally accepted terms defining the responsibilities of _____ in the arrangement of shipments and the transfer of liability.
A
exporters and importers
5
Q
Incoterms _____ ownership or the transfer of title of goods.
A
do not cover
6
Q
It is crucial to agree on an Incoterm at the start of a negotiation/ quotation of a sale, as it will affect the _____.
A
costs and responsibilities involved in shipping, insurance and tariffs
7
Q
The new Incoterms 2010 rules became effective _____.
A
January 1, 2011
8
Q
DAF
A
Delivered at Frontier Named Place
9
Q
DEQ
A
Delivered Ex Quay Named Port of Destination (Duty Paid)
10
Q
DES
A
Delivered Ex Ship Named Port of Destination
11
Q
DDU
A
Delivered Duty Unpaid Named Place of Destination
12
Q
The four Incoterms eliminated by Incoterms 2010 were _____.
A
DAF, DEQ, DES, DDU
13
Q
What is a quay?
A
a concrete, stone, or metal platform lying alongside or projecting into water for loading and unloading ships
14
Q
The two Incoterms added by Incoterms 2010 are _____.
A
DAP and DAT
15
Q
There are _____ Incoterms in Incoterms 2010.
A
11
16
Q
Before 2010, the last Incoterms update was in _____.
A
2000
17
Q
Inexperienced exporters may want to use the _____ Incoterm because it carries the least burden for them.
A
EXW
18
Q
Under EXW, the seller’s responsibility ends at _____.
A
their loading dock
19
Q
Under EXW, the seller still needs to provide any product information needed for filing _____.
A
the Electronic Export Information (EEI)
20
Q
Under EXW, the _____ will arrange and pay for the pre-carriage, shipping, insurance and any additional costs from the exporter’s door.
A
buyer’s agent
21
Q
Under CIF, the _____ arranges and pay for the pre-carriage, shipping, and insurance to a named port.
A
seller
22
Q
Under CIF, the sale price (invoice) includes not only the cost of goods, but also _____.
A
(I)nsurance and (F)reight costs
23
Q
When designating the Incoterm on a commercial invoice or a quotation to the buyer, the term should be followed by the _____.
A
city or port of load/discharge
24
Q
The most burdensome Incoterm for the exporter is _____, because all arrangements and costs are borne by the exporter.
A
DDP
25
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
26
Since ___ represents the maximum obligation to the seller, it is not recommended for companies that are new-to-export.
DDP
27
ICC
International Chamber of Commerce
28
FAS has _____ risk/liability for the exporter than FOB.
Less
29
FAS has _____ risk/liability for the exporter than CFR.
Less
30
FAS has _____ risk/liability for the exporter than CIF.
Less
31
FOB has _____ risk/liability for the exporter than FAS.
More
32
FOB has _____ risk/liability for the exporter than CFR.
Less
33
FOB has _____ risk/liability for the exporter than CIF.
Less
34
CFR has _____ risk/liability for the exporter than FAS.
More
35
CFR has _____ risk/liability for the exporter than FOB.
More
36
CFR has _____ risk/liability for the exporter than CIF.
Less
37
CIF has _____ risk/liability for the exporter than FAS.
More
38
CIF has _____ risk/liability for the exporter than FOB.
More
39
CIF has _____ risk/liability for the exporter than CFR.
More
40
FAS
Free Alongside Ship
41
FOB
Free On Board
42
CFR
Cost and Freight
43
CIF
Cost, Insurance and Freight
44
FAS applies to ____ transport.
only sea and inland waterway
45
FOB applies to ____ transport.
only sea and inland waterway
46
CFR applies to ____ transport.
only sea and inland waterway
47
CIF applies to ____ transport.
only sea and inland waterway
48
Under FAS, risk passes to buyer once delivered to _____ by the seller.
side of ship (realistically at named port terminal)
49
Under FAS, seller delivers goods to _____.
the origin port terminal
50
Under FAS, export clearance obligation rests with the _____.
seller
51
Under FAS, _____ is responsible for import clearance, duties and taxes.
buyer
52
Under FOB, risk passes to buyer once delivered _____ by the seller.
on board the ship
53
Under FOB, seller arranges transportation to _____.
port and loading on the ship
54
Under FOB, export clearance obligation rests with the _____.
seller
55
Under FOB, _____ is responsible for import clearance, duties and taxes.
buyer
56
Under CFR, seller delivers goods to _____.
the vessel
57
Under CFR, risk passes to buyer when _____.
on board the vessel
58
Under CFR, seller arranges and pays cost and freight to _____.
the named destination port
59
Under CFR, export clearance obligation rests with the _____.
seller
60
Under CFR, _____ is responsible for import clearance, duties and taxes.
buyer
61
Under CIF, risk passes to buyer when delivered _____.
on board the ship
62
Under CIF, seller arranges and pays _____ to _____.
cost, freight and insurance ; destination port
63
Under CIF, export clearance obligation rests with the _____.
seller
64
Under CIF, _____ is responsible for import clearance, duties and taxes.
buyer
65
EXW
Ex Works
66
FCA
Free Carrier
67
CPT
Carriage Paid To
68
CIP
Carriage and Insurance Paid To
69
DAT
Delivered at Terminal
70
DAP
Delivered at Place
71
DDP
Delivered Duty Paid
72
EXW applies to ____ transport.
any mode of transport
73
FCA applies to ____ transport.
any mode of transport
74
CPT applies to ____ transport.
any mode of transport
75
CIP applies to ____ transport.
any mode of transport
76
DAT applies to ____ transport.
any mode of transport
77
DAP applies to ____ transport.
any mode of transport
78
DDP applies to ____ transport.
any mode of transport
79
EXW has _____ risk/liability for the exporter than FCA.
Less
80
EXW has _____ risk/liability for the exporter than CPT.
Less
81
EXW has _____ risk/liability for the exporter than CIP.
Less
82
EXW has _____ risk/liability for the exporter than DAT.
Less
83
EXW has _____ risk/liability for the exporter than DAP.
Less
84
EXW has _____ risk/liability for the exporter than DDP.
Less
85
FCA has _____ risk/liability for the exporter than EXW.
More
86
FCA has _____ risk/liability for the exporter than CPT.
Less
87
FCA has _____ risk/liability for the exporter than CIP.
Less
88
FCA has _____ risk/liability for the exporter than DAT.
Less
89
FCA has _____ risk/liability for the exporter than DAP.
Less
90
FCA has _____ risk/liability for the exporter than DDP.
Less
91
CPT has _____ risk/liability for the exporter than EXW.
More
92
CPT has _____ risk/liability for the exporter than FCA.
More
93
CPT has _____ risk/liability for the exporter than CIP.
Less
94
CPT has _____ risk/liability for the exporter than DAT.
Less
95
CPT has _____ risk/liability for the exporter than DAP.
Less
96
CPT has _____ risk/liability for the exporter than DDP.
Less
97
CIP has _____ risk/liability for the exporter than EXW.
More
98
CIP has _____ risk/liability for the exporter than FCA.
More
99
CIP has _____ risk/liability for the exporter than CPT.
More
100
CIP has _____ risk/liability for the exporter than DAT.
Less
101
CIP has _____ risk/liability for the exporter than DAP.
Less
102
CIP has _____ risk/liability for the exporter than DDP.
Less
103
DAT has _____ risk/liability for the exporter than EXW.
More
104
DAT has _____ risk/liability for the exporter than FCA.
More
105
DAT has _____ risk/liability for the exporter than CPT.
More
106
DAT has _____ risk/liability for the exporter than CIP.
More
107
DAT has _____ risk/liability for the exporter than DAP.
Less
108
DAT has _____ risk/liability for the exporter than DDP.
Less
109
DAP has _____ risk/liability for the exporter than EXW.
More
110
DAP has _____ risk/liability for the exporter than FCA.
More
111
DAP has _____ risk/liability for the exporter than CPT.
More
112
DAP has _____ risk/liability for the exporter than CIP.
More
113
DAP has _____ risk/liability for the exporter than DAT.
More
114
DAP has _____ risk/liability for the exporter than DDP.
Less
115
DDP has _____ risk/liability for the exporter than EXW.
More
116
DDP has _____ risk/liability for the exporter than FCA.
More
117
DDP has _____ risk/liability for the exporter than CPT.
More
118
DDP has _____ risk/liability for the exporter than CIP.
More
119
DDP has _____ risk/liability for the exporter than DAT.
More
120
DDP has _____ risk/liability for the exporter than DAP.
More
121
Under EXW, seller delivers the goods at disposal of buyer at _____.
seller's premisis
122
EXW _____ loading at seller's premisis.
does not include
123
___ has long held as the most preferable term for those new-to-export because it represents the minimum liability to the seller.
EXW
124
For EXW routed transactions, the buyer has _____ obligation to provide export information to the seller.
limited
125
Under EXW, export clearance obligation rests with the _____.
buyer
126
Under EXW, _____ is responsible for import clearance, duties and taxes.
buyer
127
Under FCA, seller delivers the goods to _____.
the carrier
128
FCA _____ loading at seller's premisis.
includes
129
Under FCA, export clearance obligation rests with the _____.
seller
130
_____ 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
131
Under FCA, _____ is responsible for import clearance, duties and taxes.
buyer
132
Under CPT, seller delivers goods to the carrier at _____.
an agreed place, shifting risk to the buyer
133
Under CPT seller must pay cost of carriage to _____.
the named place of destination
134
Under CPT, _____ is responsible for import clearance, duties and taxes.
buyer
135
Under CPT, export clearance obligation rests with the _____.
seller
136
Under CIP, seller delivers goods to _____.
the carrier at an agreed place, shifting risk to the buyer
137
Under CIP, seller pays carriage and insurance to _____.
the named place of destination
138
Under CIP, _____ is responsible for import clearance, duties and taxes.
buyer
139
Under CIP, export clearance obligation rests with the _____.
seller
140
Under DAT, seller bears cost, risk and responsibility until goods are _____.
unloaded (delivered) at named quay, warehouse, yard, or terminal at destination
141
Under DAT, _____ charges may apply to seller.
demurrage or detention
142
DAT replaces _____.
DEQ, DES
143
DEQ was replaced by _____.
DAT
144
DES was replaced by _____.
DAT
145
Under DAT, _____ is responsible for import clearance, duties and taxes.
buyer
146
Under DAT, export clearance obligation rests with the _____.
seller
147
Under DAP, seller bears cost, risk and responsibility for goods until _____.
made available to buyer at named place of destination
148
Under DAP, export clearance obligation rests with the _____.
seller
149
Under DAP, _____ is responsible for import clearance, duties and taxes.
buyer
150
DAP replaces _____.
DAF, DDU
151
DAF was replaced by _____.
DAP
152
DDU was replaced by _____.
DAP
153
Under DDP, seller bears _____ at named place of destination at buyers disposal.
cost, risk and responsibility for cleared goods
154
Under DDP, _____ is responsible for unloading.
buyer
155
Under DDP, export clearance obligation rests with the _____.
seller
156
Under DDP, _____ is responsible for import clearance, duties and taxes.
seller
157
Under DDP, _____ is not the importer of record.
buyer
158
Incoterms _____ determine ownership or transfer title to the goods
do not
159
Incoterms _____ evoke payment terms.
do not
160
Incoterms _____ apply to service contracts.
do not
161
Incoterms_____ define contractual rights or obligations (except for delivery) or breach of contract remedies.
do not
162
Incoterms _____ protect parties from their own risk or loss.
do not
163
Incoterms _____ cover the goods before or after delivery.
do not
164
Incoterms _____ specify details of the transfer, transport, and delivery of the goods.
do not
165
Container loading is NOT considered _____.
packaging
166
Container loading must be addressed in the _____.
sales contract
167
Incoterms _____ law.
are not
168
The default Incoterm is _____.
There is no default Incoterm.
