TOPIC 4 - INCOTERMS (QUIZ)

1. A seller in USA was required by the buyer in Manila to deliver 1 x 20’ van containing refrigerator units on board the vessel at the port of Los Angeles. The invoice shows ex-works value of $35,000.00. The seller paid loading to truck charges at $15.00, origin inland freight of $30.00, origin internal insurance of $20.00, origin THC charges of $50.00, export documentation of $150.00 and export duties and taxes of $300.00. The buyer will pay the freight charges of $2,000.00 from Los Angeles to Manila and marine insurance of $250.00. Determine the INCOTERM used and its corresponding amount.

• a) FOB, Los Angeles - $35,565.00

• b) FCA, Los Angeles - $35,565.00

• c) CIF, Los Angeles - $37,815.00

• d) CIP, Los Angeles - $37,815.00

2. A buyer in Davao instructed his seller in China to deliver 100 cartons of electronic chips to the custody of a freight forwarding company in Shenzhen City. The seller’s quotation shows ex-works value of $18,000.00, origin inland freight and internal insurance of $25.00 and $15.00 respectively, export clearance of $80.00 and export duties and taxes of $250.00. Also included in the seller’s quotation is the main carriage of $1,800.00 and port-to-port insurance of $300.00. Determine the INCOTERM used and its corresponding amount.

• a) FCA, Shenzhen - $18,370.00

• b) CIP, Davao - $20,470.00

• c) CIF, Davao - $20,470.00

• d) FOB, Shenzhen - $18,370.00

3. An importer in Tokyo, Japan required his exporter in Philippines to make available the 750 boxes containing dried mangoes available on his warehouse in Naga City. The covering invoice shows ex-works value of $8,000.00 inclusive of packaging cost of $50.00. The importer hired the services of a logistics company to pick up the goods at the warehouse and have them cleared for export. The importer paid pre-carriage of $20.00, origin internal insurance of $10.00, export documentation of $80.00, export documentation of $150.00, freight charges of $2,000.00 and marine insurance of $200.00. Determine the INCOTERM used and its corresponding amount.

• a)    CIF, Tokyo - $10,460.00

• b) FCA, Naga - $8,050.00

• c) EXW, Naga - $8,000.00

• d) CIP, Tokyo - $10,460.00

4. An exporter in Davao was instructed by his importer in Korea to deliver 30 units of television to the latter’s warehouse in Andong City. The seller’s quotation shows ex-works value of $28,000.00, origin inland freight and internal insurance of $30.00 and $15.00 respectively, origin LCL charges of $40.00, export documentation of $100.00, export duties and taxes of $150.00 and ocean freight charges of $1,500.00. Also included in the seller’s quotation were destination LCL charges of $80.00, destination inland freight and internal insurance of $20.00 and $10.00 respectively, import documentation of $70.00 and import duties and taxes of $500.00. The latter will pay the destination unloading charges of $50.00 upon arrival at the warehouse. Determine the INCOTERM used and its corresponding amount.

• a) DAP, Andong - $30,515.00

• b) DDP, Andong - $30,565.00

• c) DPU, Andong - $30,565.00

• d) DDP, Andong - $30,515.00

5. A shipment of bulk cargo were delivered by seller on a lighter at the port of Bangkok in Thailand with total ex-works value of $23,000.00. The seller paid the loading to truck charges of $10.00, origin inland freight of $20.00, origin internal insurance of $15.00, export documentation of $50.00 and export duties and taxes of $100.00. The buyer in Legaspi will assume the payment of origin LCL charges of $75.00, ocean freight charges of $2,100.00 and marine insurance of $300.00. Determine the INCOTERM used and its corresponding amount.

• a) FAS, Bangkok - $23,195.00

• b) FAS, Bangkok - $23,270.00

• c) CIF, Legaspi - $25,670.00

• d) CIP, Legaspi - $25,670.00

6. A seller in Mandaue City was required by the buyer in Germany to deliver 1 x 40’ van containing production machineries on board the vessel at the port of Cebu. The invoice shows ex-works value of $28,000.00. The seller paid origin inland freight of $20.00, origin internal insurance of $10.00, origin THC charges of $60.00, export documentation of $250.00 and export duties and taxes of $500.00. The seller also includes pre-payment of ocean freight charges of $1,800.00 from Cebu, Philippines to Hamburg, Germany. Determine the INCOTERM used and its corresponding amount.

• a) CFR, Cebu - $30,640.00

• b) CFR, Hamburg - $30,640.00

• c) FOB, Cebu - $28,840.00

• d) FOB, Hamburg - $28,840.00

7. A buyer in Manila instructed his seller in Jakarta, Indonesia to deliver 200 cases of juice drinks to the custody of Garuda Indonesia Airlines in Tangerang City, Indonesia. The seller’s quotation shows ex-works value of $12,000.00, origin inland freight and internal insurance of $15.00 and $10.00 respectively, export clearance of $50.00 and export duties and taxes of $175.00. The buyer in Manila will handle the main carriage of $1,300.00 and port-to-port insurance of $200.00. Determine the INCOTERM used and its corresponding amount.

• a) CIP, Manila - $13,750.00

• b) CIF, Manila - $13,750.00

• c) FCA, Tangerang - $12,250.00

• d) FCA, Jakarta - $12,250.00

8. A buyer in Manila instructed his seller in Kuala Lumpur, Malaysia to deliver 10 units of equipment to the former’s warehouse in Quezon City. The seller’s quotation shows ex-works value of $32,000.00, origin inland freight and internal insurance of $40.00 and $20.00 respectively, origin LCL charges of $50.00, export documentation of $150.00, export duties and taxes of $400.00 and main carriage of $2,000.00. Also included in the seller’s quotation were destination LCL charges of $70.00, on-carriage of $30.00, destination internal insurance of $15.00 and destination unloading charges of $25.00 upon arrival at the warehouse. The buyer will pay import documentation of $150.00 and import duties and taxes of $300.00. Determine the INCOTERM used and its corresponding amount.

• a) DDP, Quezon - $35,250.00

• b) DAP, Manila - $35,250.00

• c) DPU, Manila - $34,800.00

• d) DPU, Quezon - $34,800.00

9. A shipment of 2 x 20’ vans containing coal were delivered by seller in China on board the vessel at the port of Shanghai with total ex-works value of $27,000.00. The seller paid origin inland freight of $50.00, origin internal insurance of $30.00, export documentation of $175.00 and export duties and taxes of $500.00. The seller will also handle the payment of ocean freight charges of $3,500.00 from Shanghai to Davao, Philippines and marine insurance of $800.00 as per agreement with the buyer. Determine the INCOTERM used and its corresponding amount.

• a) CIF, Davao - $32,055.00

• b) CIP, Davao - $32,055.00

• c) FOB, Shanghai - $27,755.00

• d) FCA, Shanghai - $27,755.00

10. A shipment of 500 cartons of phone parts were delivered by a seller in Korea to a logistics company in Gunsan City, Korea. The covering invoice shows total invoice value of $24,000.00 inclusive of origin inland freight of $40.00, origin internal insurance of $25.00, export documentation of $120.00, export duties and taxes of $300.00 and main carriage of $1,200.00. The buyer in Manila will assumed the payment of port-to-port insurance of $350.00. Determine the INCOTERM used and its corresponding amount.

• a) CPT, Manila - $24,000.00

• b) CPT, Manila - $25,685.00

• c) FCA, Gunsan - $24,000.00

• d) CIP, Manila - $25,685.00