CDCS EXAM 2019 (October Intake) PREPARATION PROGRAM

Weekly Progress & Evaluation Test 42

01. In an LC calling for a bill of lading on CFR basis, which of the following is acceptable:
A. Shipped on board with freight pre-payable.
B. Shipped on board with freight to be pre-paid.
C. Shipped on board with freight paid and destination charges collect
D. Received for shipment with freight pre-paid and destination charges to pay.
02. 23. At SWIFT MT 700, F46A:
1. CMR. 2. Insurance Policy.
3. Commercial Invoice & packing list. 4. Inspection certificate & Certificate of origin.
Which of the following INCOTERM should be used?
A. FOB; B. CIP;
C. CIF; D. CPT
03. If the goods are packed in containers that will be transported on a ship with the cost of
carriage paid by the seller, which of the following INCOTERMS favorable for selection for the
Buyer?
A. CPT; B. CFR
C. FOB; D. FAS
04. At which point does risk transfer from seller to buyer under CIF (named port of
destination), INCOTERMS 2010?
A. At the seller’s premise, ready for unloading.
B. When delivered to the carrier at the port of loading.
C. On board the vessel at the port of loading.
D. On board the vessel at the destination port.
05. Which of the following INCOTERM specifically require the beneficiary to arrange to
insure the goods up to the point of delivery?
A. DDP; B. EXW;
C. FOB; D. CIF
06. With which of the following combination of INCOTERMS does the delivery risk pass
from the seller to the buyer at the same point?
A. CIP and DAT; B. DAP and DAT;
C. EXW and FCA; D. FOB and CFR.
07. Which of the following INCOTERM place the greatest delivery risk on the buyer?
A. FAS; B. FCA;
C. FOB; D. CFR
08. A seller sold goods to a buyer on CFR-2010 basis and fulfilled his delivery obligation by
shipping the goods on board the vessel “A” at the port of loading prepaying the freight.
During the journey, the vessel chose an alternative route which is longer than the usual
route due to an inclement weather. The carrier charged an additional freight due to the
longer journey. Which of the following parties should bear the additional freight?
A. The seller;
B. The buyer
C. Neither the seller nor the buyer. It is the carrier who has to assume the risk
D. Not covered in the INCOTERMS-2010 rules
09. Which of the following INCOTERM is correctly described:
INCOTERMS Main Carriage Import Formalities PSI mandated by Exporting country
A. EXW Buyer Buyer Seller
B. FOB Buyer Buyer Seller
C. CFR Seller Buyer Buyer
D. DDP Seller Buyer Seller

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 CDCS EXAM 2019 (October Intake) PREPARATION PROGRAM
Weekly Progress & Evaluation Test 42
10. Which of the following obligation is/are not taken by the seller under CPT?
i) Seller Delivers the goods to the carrier named by the buyer at the named place.
ii) The insurance must cover the invoice value plus 10% in the currency of Credit.
iii) If subsequent carriers are used for the carriage to the agreed destination, the
risk passes from seller to buyer when goods have been delivered to the first carrier.
iv) If subsequent carriers are used for the carriage to the agreed destination, the risk
passes from seller to buyer when goods have been delivered to subsequent carriers
A) II & III; B) II & IV;
C) I & IV Only; D) I & II Only
11. Which of the following is TRUE about the Incoterms CFR?
A. The buyer enters into the contract of carriage with the main carrier.
B. Transfer of risks occurs at the port of loading.
C. The seller pays unloading costs if separate from the main carriage costs.
D. This term can be used for all modes of transport.
12. Under existing INCOTERMS 2010, the seller is under no obligation to arrange
insurance:
1. CIP; 2. CIF 3.CFR; 4.FCA
A. 1 & 2 only; B. 3 & 4 only;
C. 2 & 4 only; D. All of the above
13. Which of the following INCOTERM is correctly described:
INCOTERMS Main Carriage Import Formalities PSI mandated by Exporting country
A. EXW Buyer Buyer Seller
B. FOB Seller Buyer Seller
C. CFR Seller Buyer Seller
D. DDP Seller Buyer Seller
14. At SWIFT MT 700, F46A:
1. Negotiable Multi-modal Bill of Lading. 2. Negotiable insurance certificate.
3. Commercial Invoice & packing list. 4. Inspection certificate & Certificate of origin.
Which of the following INCOTERM should be used?
A. FOB; B. CIP;
C. CIF; D. CPT
15. Which of the following statement best defines how the Incoterms rules, apply to domestic
and international contract of sale?
A. INCOTERMS rules become part of the contract of sale by express incorporation by
the seller and the buyer.
B. INCOTERM rule become applicable to seller and buyer when adopted by national
govt. as they represent global regulation.
C. INCOTERM rule automatically become applicable to the International carriage of
goods between seller and buyer as they represent international law.
D. All of the above
16. Which of the following documents should not be called for when the INCOTERM FCA
is used?
A. On board bill of lading; B. Tax Invoice
C. Forwarder’s cargo receipt; D. Packing list
17. Under which of the following terms under INCOTERMS2010, the seller deliver the
goods by placing them at the disposal of the buyer?
A. EXW, DAP, DDP; B. DAT, DAP, DDP
C. EXW, DAT, DAP, DDP; D. All of the eleven INCOTERMS
18. An exporter sells goods overseas on FOB and CIF INCOTERMS respectively. Who is
responsible for the freight charges in each?
A. Importer (FOB)/ Exporter (CIF) B. Importer (FOB)/ Importer (CIF)
C. Exporter (FOB)/ Importer (CIF) D. Exporter (FOB)/ Exporter (CIF)

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