Inco-terms Quiz

True or False: Inco-terms are standardized rules that define the responsibilities of buyers and sellers in international trade.

• False

• True

• Inco-terms are only applicable to domestic trade

• Inco-terms are optional guidelines for buyers and sellers

Which Inco-terms are specifically used for international shipping?

• DEQ

• DES

• DDU

• EXW, FCA, CPT, CIP, DAT, DAP, DDP, FAS, FOB, CFR, CIF

What is the difference between Inco-terms and shipping terms?

• Inco-terms are the same as shipping terms.

• Inco-terms are used for domestic shipping, while shipping terms are used for international shipping.

• Inco-terms only apply to the transportation of goods by air.

• Inco-terms are a subset of shipping terms that specifically focus on the division of costs and risks between the buyer and seller during the transportation process.

What is the difference between CIF and CFR?

• Inco-term for CIF is for Sea and inland waterway transport only.

• CIF means have insurance and CFR do not have insurance.

• CFR means Seller cover cost of freight to port or destination, but CIF only cover the cost of freight to the vessel.

• CFR means Seller is responsible for delivery of goods at port alongside of the vessel. From then onwards, risk and costs transfer to the Buyer.

True or False: Inco-terms are legally binding contracts.

• False

• True

• Sometimes

• Only for international trade

True or False: DPU means Seller assumes all costs & risks until goods

are unloaded at destination Buyer responsible for import customs.

• False

• True

• Sometimes

• Only for international trade

FCA means Seller is only responsible for delivery to the named place. At the named place, Seller is ....

• not responsible for loading and unloading, it all is buyer's responsibilty.

• not responsible for loading but is responsible for unloading

• responsible for loading and unloading, then buyer take over

• responsible for loading after that responsibility is Buyer's

What is FGP?

• Factory Gate Pricing

• Freight & Goods at Place

• Freight and Goods Paid

• None of the above

True or False: DPU means Seller assumes all costs & risks until goods

are unloaded at destination Buyer responsible for import customs.

• False

• True

For Ex-works, what is the responsibility of the Buyer?

• Responsible for all risks & costs to destination, excluding loading of cargo.

• Responsible for all risks & costs to destination, excluding loading of cargo.

• Responsible for all risks and costs to destination, excluding loading of cargo

• Responsible for all risks and costs to destination, including loading of cargo.