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. 4.

What does FOB stand for? A free on board B free orignial barbecue C for billing 5. What does CIF include? A insurance and customs duty B transport cost and insurance C transport costs and customs duty 6. Which terms are cheapest for the seller? A DDP B CIF C EXW D FAS 7. Free alongside ship (FAS) means that ... 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.

Incoterms Quiz 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. 11. What does FOB stand for? A free on board B free orignial barbecue C for billing 12. What does CIF include? A insurance and customs duty B transport cost and insurance C transport costs and customs duty 13. Which terms are cheapest for the seller? A DDP B CIF C EXW D FAS 14. Free alongside ship (FAS) means that ... 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.

Task 15. 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

16. 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.

Answer Correct: E Other answers:

Correct: D 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 (are) true? I) The seller makes the goods available at his premises. J) The buyer pays transport costs from the seller's premises on.

Correct; A and B

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? A

free on board

B

free orignial barbecue

C

for billing

19. What does CIF include? A

insurance and customs duty

B

transport cost and insurance

C

transport costs and customs duty

20. Which terms are cheapest for the seller? A

DDP

B

CIF

C

EXW

D

FAS

21. Free alongside ship (FAS) means that ... A ... the goods don't belong to anybody as long as they are alongside the ship.

Correct: A

Correct: B

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

Correct: B

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 by sailboat.

... the goods have to be delivered