Getting to know Incoterms 2010
1. In Incoterms 2010, risk refers to of or to the goods.
1. In Incoterms 2010, risk refers to loss of or damage to the goods.
1. list at least five responsibilities that may be assigned to the seller or buyer, depending on the particular Incoterms rule.
1. list at least five responsibilities that may be assigned to the seller or buyer, depending on the particular Incoterms rule. packaging marking delivery assisting with licenses assisting with Customs obtaining security clearances obtaining cargo insurance paying for...cargo insurance...taxes and duties...loading/unloading...transportation...terminal handling charges
Transportation Categories 1 2 3 pre carriage main carriage on carriage
2. Which Incoterms rule can be used to transfer title of goods?
2. Which Incoterms rule can be used to transfer title of goods? Trick question. None of the rules can be used to transfer title of goods.
3. In order to use the Incoterms rules properly, you should... choose the right. include the rule in your. specify the place/port precisely.
3. In order to use the Incoterms rules properly, you should... choose the right rule. include the rule in your contract. specify the named place/port precisely.
Example FCA 200 Grand Avenue, Linden NJ 07036, Incoterms 2010
New in Incoterms 2010
New in Incoterms 2010 Definition of delivery 4. Complete the following sentence. In Incoterms 2010, delivery is defined as...
New in Incoterms 2010 Definition of delivery 4. Complete the following sentence. In Incoterms 2010, delivery is defined as...where the risk passes from seller to buyer.
New in Incoterms 2010 Definition of packaging 5. In Incoterms 2010, packaging refers to which two of the following conditions? a) packaging to comply with the sales contract b) packaging so goods are fit for transport c) stowage of the packaged goods in a container
New in Incoterms 2010 Definition of packaging 5. In Incoterms 2010, packaging refers to which two of the following conditions? a) packaging to comply with the sales contract b) packaging so goods are fit for transport c) stowage of the packaged goods in a container
New in Incoterms 2010.. who obtains security clearance.. who pays for terminal handling charges.. string sales
New in Incoterms 2010 6. In Incoterms 2010, how are the rules grouped? a) alphabetically, by letter b) all modes vs. maritime only c) international vs. domestic d) import vs. export
New in Incoterms 2010 6. In Incoterms 2010, how are the rules grouped? a) alphabetically, by letter b) all modes vs. maritime only c) international vs. domestic d) import vs. export
New in Incoterms 2010 All Modes EXW Ex-Works FCA Free Carrier CPT Carriage Paid To DAT Delivered At Terminal* DAP Delivered At Place* DDP Delivered Duty Paid CIP Carriage & Insurance Paid To
EXW Ex-Works Delivery once goods are available to buyer at the named place Seller must help buyer with docs/security info
FCA Free Carrier 1st carrier Seller Premises Delivery once goods are loaded onto 1st carrier Terminal Delivery once goods are made available to unload at 1st carrier's terminal Seller/Exporter arranges export formalities
CPT Carriage Paid To 1st carrier Delivery once goods are loaded onto the first carrier Seller pays for freight to named place at destination
NEW DAT Delivered at Terminal Buyer responsible for import clearance, on carriage Seller pays to destination terminal, including unloading unloading is on the seller
NEW DAP Delivered at Place unloading is on the buyer Delivery to named destination, all transportation paid Buyer responsible for unloading, import clearance
DDP Delivered Duty Paid Seller bears all risk and cost up to the buyer's door VAT *new* Value-Added-Tax included by default for the seller DDP Paris, France VAT unpaid Incoterms 2010.
ocean only FAS Free Alongside Ship FOB Free On Board CFR Cost & Freight CIF Cost, Insurance, & Freight
FAS Free Alongside Ship Delivery once goods are positioned alongside ship
FOB Free on Board Delivery *change* once on board (no longer ship's rail) delivery = on board
CFR Cost & Freight Delivery once on board (same as FOB) delivery = on board Seller pays for freight to destination port
7. Which two Incoterms rules require insurance?
7. Which two Incoterms rules require insurance? CIF-Cost Insurance & Freight CIP-Carriage & Insurance Paid To
Best for international sales CPT or CIP CFR or CIF DAP FCA
Best for global purchasing FCA FOB EXW DAP
Domestic Use Incoterms 2010 replace old Uniform Commercial Code (UCC)
Domestic Use Then: FOB Origin, freight collect (buyer tasked w/loading) Now: EXW Then: FOB Origin Car or Other Vehicle, freight collect (seller tasked w/loading) Now: FCA Seller's Premises Then: FOB Origin, freight prepaid Now: CPT & CIP
Domestic Use Then: FOB Destination, freight prepaid Now: DAP Then: FOB Destination, freight collect Now: No equivalent Then: FAS Now: FAS
Domestic Use Then: FOB Vessel Now: FOB Then: C&F and CIF Now: CFR and CIF
Robert Stein rstein@mohawkglobal.com Licensed U.S. Customs Broker Vice President, Customs & Trade Compliance Mohawk Global Logistics mohawkglobal.com