Incoterms Quiz Incoterms Quiz

1. Match the definition with the incoterms:
"The seller pays the transport costs up to the port of shipment. He bears the risk until the
goods have passed the ship's rail at the port of shipment."
A FAS
B EXW
C DDP
D CIF
E FOB
2. Which terms apply to DDP?
A The buyer has to cover all the costs, including marine insurance and
customs duty.
B The seller pays all costs, including customs duty.
C The seller pays all the costs and bears the risk until the goods have been
delivered on his side of the border.
D The seller pays insurance and transport costs up to the port of destination.
3. Which of the statement(s) about EXW is (are) true?
A) The seller makes the goods available at his premises.
B) The buyer pays transport costs from the seller's premises on.
C) The buyer makes the goods available at his premises.
D) The seller pays the transport costs up to the port of shipment.
8. Match the definition with the incoterms:
"The seller pays the transport costs up to the port of shipment. He bears the risk until the
goods have passed the ship's rail at the port of shipment."
A FAS
B EXW
C DDP
D CIF
E FOB
9. Which terms apply to DDP?
A The buyer has to cover all the costs, including marine insurance and
customs duty.
B The seller pays all costs, including customs duty.
C The seller pays all the costs and bears the risk until the goods have been
delivered on his side of the border.
D The seller pays insurance and transport costs up to the port of destination.
10. Which of the statement(s) about EXW is (are) true?
E) The seller makes the goods available at his premises.
F) The buyer pays transport costs from the seller's premises on.
G) The buyer makes the goods available at his premises.
H) The seller pays the transport costs up to the port of shipment.

4. What does FOB stand for? 11. What does FOB stand for?
A free on board A free on board
B free orignial barbecue B free orignial barbecue
C for billing C for billing
5. What does CIF include? 12. What does CIF include?
A insurance and customs duty A insurance and customs duty
B transport cost and insurance B transport cost and insurance
C transport costs and customs duty C transport costs and customs duty
6. Which terms are cheapest for the seller? 13. Which terms are cheapest for the seller?
A DDP A DDP
B CIF B CIF
C EXW C EXW
D FAS D FAS
7. Free alongside ship (FAS) means that ... 14. Free alongside ship (FAS) means that ...
A ... the goods don't belong to anybody as long as they are alongside the ship. A ... the goods don't belong to anybody as long as they are alongside the ship.
B ... the buyer is responsible for the transportation of his goods as B ... the buyer is responsible for the transportation of his goods as
soon as they are being loaded aboard. soon as they are being loaded aboard.
C ... the seller has to pay for the transport until the goods are being C ... the seller has to pay for the transport until the goods are being
unloaded at the port of destination. unloaded at the port of destination.
D ... the goods have to be delivered by sailboat. D ... the goods have to be delivered by sailboat.
Task Answer
15. Match the definition with the incoterms: Correct: E
"The seller pays the transport costs up to the port of
shipment. He bears the risk until the goods have Other answers:
passed the ship's rail at the port of shipment."

A FAS

B EXW

C DDP

D CIF

E FOB

16. Which terms apply to DDP? Correct: D

A The buyer has to cover all the
costs, including marine insurance and customs
duty.
B The seller pays all costs, including
customs duty.
Other answers:
A (This applies to CIF (Cost, insurance, freight))
B (That would be EXW (ex works))
C (This applies only to DAF (delivered at frontier))
D (DDP: delivered duty paid; the seller also bears
the risk until the goods have been delivered to the
buyer).

C The seller pays all the costs and

bears the risk until the goods have been delivered
on his side of the border.

D The seller pays insurance and

transport costs up to the port of destination.

17. Which of the statement(s) about EXW is Correct; A and B

(are) true?

I) The seller makes the goods available at his

premises.
J) The buyer pays transport costs from the
seller's premises on.
 K) The buyer makes the goods available at his
premises.
L) The seller pays the transport costs up to the
port of shipment.

18. What does FOB stand for? Correct: A

A free on board

B free orignial barbecue

C for billing

19. What does CIF include? Correct: B

A insurance and customs duty

B transport cost and insurance

C transport costs and customs duty

20. Which terms are cheapest for the seller? Correct: C

The seller pays the transport costs up to the port of
shipment. He bears the risk until the goods have
A DDP been delivered alongside the ship.
Right! No transport costs, no insurance, no risk! Ex
B CIF works is seller's favourite.

C EXW

D FAS

21. Free alongside ship (FAS) means that ... Correct: B

A ... the goods don't belong to

anybody as long as they are alongside the ship.
 B ... the buyer is responsible for the
transportation of his goods as soon as they are
being loaded aboard.

C ... the seller has to pay for the

transport until the goods are being unloaded at the
port of destination.

D ... the goods have to be delivered

by sailboat.