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WorksheetsIncoterms Quiz - TACN4
Total questions: 20
Worksheet time: 10mins
Which statement is correct according to the FAS Incoterms 2020?
The seller bears the cost and risk of the goods up to the designated port of destination.
The seller bears the cost and risk of the goods up to the designated delivery port.
The seller bears the cost and risk of the goods up to the loading location at the designated delivery port.
The seller bears the cost and risk of the goods up to the designated place of destination.
According to Incoterms 2020, the group of terms CIF, CFR, FOB, and FAS applies to which mode of transportation?
All means of transport/multimodal transport.
Only for road transport.
Only for air transport.
Only for sea and inland waterway transport
Under the CIF term, what additional responsibility does the seller have compared to the CFR term?
Paying extra insurance costs for the goods
Paying import taxes in the destination country
Bearing all risks of the goods until they reach the destination
Unloading goods at the destination port
When are D-terms commonly used?
When the seller does not want to bear transportation risks.
When the buyer wants to receive the goods at the export port.
When the buyer wants the goods delivered to their location.
When the buyer is responsible for the entire transportation process.
Which situation is most ideal for using EXW terms?
A buyer unfamiliar with international logistics who wants the seller to handle transportation.
A buyer consolidating multiple purchases from various suppliers to reduce transportation costs.
A buyer who prefers the seller to assume all risks and responsibilities for delivery.
A buyer without a trusted representative to oversee the goods at the seller’s premises.
Under EXW Incoterms the seller must:
Make goods available for transport at seller's premise
Clear the goods for export
Organize and pay for carriage of goods to country of import
Arrange for insurance of the goods in transit
FAS/FOB (...) Incoterms 2020, fill in the blank?
Name of the delivery location
Designated place of destination
Designated loading port
Designated port of destination
Which term in group C mainly applies to maritime and inland waterway transportation?
CPT and CIP
CIF and CFR
CIP and CFR
CIF and CPT
Under the CFR term, when does the seller's responsibility end?
When the goods are handed over to the first carrier
When the goods are loaded onto the ship at the port of departure
When the goods are unloaded at the destination port
When the goods arrive at the buyer's warehouse
What is the biggest disadvantage of DDP for the seller?
No control over the final destination
Full responsibility for import taxes and duties
No transportation responsibility
Time-consuming paperwork processing
What do Incoterms primarily define in international trade?
Quality standards of goods
Payment terms between buyer and seller
Responsibilities for transportation, costs, and risks
Exchange rates for international transactions
Under which Incoterm does the buyer bear the maximum risk and cost?
CIF (Cost, Insurance, and Freight)
DDP (Delivered Duty Paid)
EXW (Ex Works)
FOB (Free on Board)
Which Incoterm requires the seller to deliver the goods to a named place but does NOT require them to pay for import duties?
DAP (Delivered at Place)
DDP (Delivered Duty Paid)
FCA (Free Carrier)
EXW (Ex Works)
In FOB (Free on Board), when does the risk transfer from the seller to the buyer?
When the goods are packed at the seller's premises
When the goods pass the ship’s rail at the port of shipment
When the goods arrive at the destination port
When the buyer clears the goods through customs
Which Incoterm requires the seller to arrange insurance for the goods in transit?
EXW (Ex Works)
FCA (Free Carrier)
CIF (Cost, Insurance, and Freight)
DAP (Delivered at Place)
What is the key difference between DDP (Delivered Duty Paid) and DAP (Delivered at Place)?
DDP requires the seller to pay import duties, while DAP does not
DAP includes insurance, while DDP does not
DAP applies only to sea transport, while DDP applies to all transport modes
DDP transfers risk earlier than DAP
Which of the following Incoterms is ONLY applicable to sea and inland waterway transport?
FCA (Free Carrier)
CIP (Carriage and Insurance Paid To)
FOB (Free on Board)
DDP (Delivered Duty Paid)
In which Incoterm does the seller fulfill their obligation when the goods are made available to the buyer at the seller’s premises?
CIF (Cost, Insurance, and Freight)
EXW (Ex Works)
DDP (Delivered Duty Paid)
CPT (Carriage Paid To)
Why might a buyer prefer FOB over CIF when purchasing goods?
FOB allows the buyer to control the shipping process and costs
CIF includes insurance, which increases the buyer’s risk
FOB transfers risk later than CIF
CIF is only applicable for air freight
Which Incoterm requires the seller to pay for transportation to the final agreed-upon destination but NOT for import duties?
DAP (Delivered at Place)
DDP (Delivered Duty Paid)
EXW (Ex Works)
FOB (Free on Board)
