1. Seller is responsible for delivering the goods to the named place in the country of the buyer.

Seller
pays all costs in delivering to the foreign destination including import duties and taxes.
DDP
2. Seller must pay the costs and freight to bring the goods to the port of destination. Risk is
transferred to the buyer once the goods are loaded on the vessel. Maritime transport only and
Insurance for the goods is NOT included.
CFR
3. The containerized transport/multimodal equivalent of CIF. Seller pays for carriage and insurance
to the named destination point, but risk passes when the goods are handed over to the first carrier.
CIP
4. Seller pays for carriage to the named place, except for costs related to import clearance, and
assumes all risks prior to the point that the goods are ready for unloading by the buyer.
DAP
5. The seller pays for carriage to the named place of destination. Risk transfers to buyer upon
handling goods over to the first carrier.
CPT
6. Seller must pay the costs and freight AND insurance to bring the goods to the port of destination.
Maritime transport only.
CIF
7. Seller loads the goods onto the vessel as instructed by the buyer. Seller clears the goods for
export. This rule applies to maritime and inland waterway transport only but NOT for shipping
containers.
FOB
8. The Seller delivers and transfers risk to the Buyer when the goods arrived at and discharged by
the Seller at the agreed place of destination in the Buyer’s country.
DPU
9. The seller makes the goods available at its premises. This rule places the maximum obligation on
the buyer and minimum obligations on the seller.
EXW
10. Under this rule, risk of loss passes to buyer when goods are placed alongside vessel used for
transportation
FAS
11. The seller hands over the goods, cleared for export, to the first carrier who is named by the
buyer, at the named place. The seller pays for carriage to the named point of delivery, and risk
passes when the goods are handed over to the first carrier.
FCA
12. Which 4 rules of Incoterms®2020 are applicable for sea and inland waterways only?
FOB FAS CFR CIF
13. Which 4 rules of Incoterms®2010 are applicable for sea and inland waterways only?
FOB FAS CFR CIF
14. Which 6 terms of Incoterms 2000 are applicable for sea and inland waterways only?
FOB FAS CFR CIF DEQ DES
15. You receive an export order with the Incoterm CFR New York Airport. How would you
respond?
> The use of CFR is not appropriate to air freight shipments as it requires the issuing of a bill of lading
and for the goods to be loaded onto a ship.
> The direct replacement multi-modal replacement for CFR is CPT.
16. Read the text and decide which incoterm suits?
Buyer: I have never imported any thing from abroad before - and as a small company, I don't have time or
staff to arrange this - and what if something went wrong? I just need this consignment here in time for the
Easter sales, and I know we can double the price we paid, if not triple it. Give me a delivery date that is
guaranteed, and I'll be happy.
Seller: As America's premier supplier of cuddly fluffy white rabbits and other soft toys, we deal with
customers all over the world. We market by Internet, and our added value selling point is we arrange all
the shipment details for our clients, right up to their shop, office or storage facility. They don't worry,
because we do everything for them.
> DDP
17. Under CIF/CIP contracts:
1) Who is legally obligated to take out the insurance cover?
> The Seller
2) What value should the insurance amount cover?
> 110% of the CIF value of the shipment, in the currency of the contract
3)Who is responsible for making the insurance dim if the goods are damaged in transit?
> The Buyer
18. CIF Incoterms®2020: Who does what? Buyer / Seller?
Accept goods upon shipment?
> Buyer
Deliver goods on board
> Seller
Provide an invoice, clean transport document and cargo insurance policy document
> Seller
Receive goods at named port of destination
> Buyer
Pay loading costs
> Seller
19. Under FOB Incoterms 2000, at which point does the seller's responsibility end?
A. The goods are on the dock.
B. The goods are over the rail of the ship.
C. The goods are on the ship.
20. Under FOB Incoterms®2010, at which point does the seller's responsibility end?
A. The goods are on the dock.
B. The goods are over the rail of the ship.
C. The goods are on the ship.
21. Under FOB Incoterms®2020, at which point does the seller's responsibility end?
A. The goods are on the dock.
B. The goods are over the rail of the ship.
C. The goods are on the ship.
22. The image depicts goods travelling from Poland to Germany using DAF Incoterms 2000. At the
point X, which of the four statements is correct?
A. The drivers hours are up and he or she needs a break.
B. The seller pays the customs duty and carries the load on to the delivery point.
C. Ownership and all risks transfer to buyer
D. The load has to be physically transshipped to another vehicle.
23. An exporter in HCMC is planning to sign a contract for the sale of rice with an Indian importer.
Place of delivery is Osaka, Japan. Choose the appropriate rules of Incoterms® 2020 in the following
cases:
a/ The Seller clears the customs for the goods, pays the carriage and insurance for the goods. The risk is
transferred from the Seller to the Buyer when the goods are on the means of transportation at the Export
country.
b/ Both parties agree to (a) but request risk to be transferred when the goods are delivered safely on the
means of transport at the Import country.
c/ After clearing exporting customs, the Seller helps the Buyer in obtaining the vessel, but the freight,
together with cargo insurance, will be handled at the port of destination by the Buyer
24. An exporter (HEMC) is planning to sign a Coffee export contract with a Taiwan importer. Place
of delivery is Busan port, Korea. Which rules in Incoterms®2020 would suit these cases?
a/ The Seller delivers the goods safely to Korean port, but does not bear the discharging cost. Import
duties will be handled by the Buyer.
b/ The Seller finishes his responsibility after export customs clearance and on board delivery of the cargo.
c/ The Buyer accepts (b), and requests the Seller to arrange main carriage and insurance. Risk of the goods
shall pass once they are loaded on board.
d/ Finally, both sides agree to (c), adding that the risk shall pass on the port of arrival, and discharging
costs and risk shall be at the Seller's account.