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WorksheetsTerms of Trade or Incoterms Rules
Total questions: 20
Worksheet time: 10mins
Name
Class
Date
1.
Among the following, the most customer-friendly Incoterms® Rule is
a)
FCA.
b)
CIP.
c)
DAP
d)
FOB
2.
A set of standardized Terms of Trade was created in _____ by the International Chamber of Commerce.
a)
1930
b)
1953
c)
1936
d)
1967
3.
The most recent Incoterms® rules were revised in _____.
a)
2010
b)
2015
c)
2000
d)
2005
4.
ICC Intercoms® rules are only used for international trade terms.
a)
True
b)
False
5.
A major consideration when selecting the correct Incoterms® rule is that sellers and buyers should not use terms that imposes risks and obligations beyond their control.
a)
True
b)
False
6.
Under the Ex-Works agreement it is the responsibility of the buyer to load the vehicle.
a)
True
b)
False
7.
Under the Free Carrier Incoterms® Rule, the importer is responsible for clearing the merchandise for export.
a)
True
b)
False
8.
Under the FOB Incoterms® Rule, in countries where export authorities require a pre-shipment inspection, the importer must pay for it.
a)
True
b)
False
9.
FCA has become one of the most popular Incoterms® rules as the number of multi-mode shipments increased.
a)
True
b)
False
10.
The Cost, Insurance, and Freight Incoterms® Rule is specifically designed for ocean transportation.
a)
True
b)
False
11.
While on the surface Incoterms® Rules determine who pays what when, ultimately the _____ directly or indirectly pay(s) the costs of transportation and international shipping.
a)
importer
b)
exporter
c)
customs office
d)
finance office
12.
In terms of cost and responsibility, the easiest Incoterms® Rule for the exporter which is, in turn, the most difficult for the importer is
a)
Delivered At Place (DAP)
b)
Ex-Works (EXW)
c)
Delivered Duty Paid (DDP)
d)
Free On Board (FOB)
13.
FOB is
a)
Free On Board
b)
an Incoterms® Rule that can be used for any merchandise
c)
an Incoterms® Rule specifically designed for ocean transportation
d)
All of the above
14.
The only Incoterms® Rule which requires the importer to clear the merchandise for export from the country from which it is coming is
a)
Free Alongside Ship.
b)
Ex-Works.
c)
Cost and Freight
d)
Delivered Ex Quay
15.
Delivered At Place is an Incoterms® Rule designed specifically for
a)
ocean transportation
b)
land transportation
c)
air transportation
d)
it can be used for any means of transportation
16.
Which Incoterms® Rule(s) requiring the exporter to pay import duty?
a)
FCA
b)
CIP
c)
DDP
d)
EXW
17.
Incoterms® Rules determine
a)
how much the agents commission will be
b)
which tasks will be performed by the exporter
c)
how much duty will be charged by the importing country
d)
All of the above
18.
The choice of the Incoterms® Rule is almost always the decision of the
a)
importer
b)
agent
c)
exporter
d)
distributor
19.
Under the Cost, Insurance, and Freight Incoterms® Rule,
a)
the importer must pre-pay the insurance.
b)
the insurance must total at least 110 percent of the value of the goods.
c)
the importer pays all shipping costs, including on carriage.
d)
None of the above
20.
1. Under the CIF Incoterms® Rule, the proof of delivery is an ocean bill of lading or a sea waybill.
a)
True
b)
False
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