International Logistics Ch6

Front 1

icoterm

Back 1

An International Commerce Term, or a formalized international term of trade which specifies the responsibilities of the exporter and of the importer in an international transaction

Front 2

ship's rail

Back 2

An imaginary line that circles the entire hull of a ship

Front 3

stevedore

Back 3

A company or a person whose responsibility is to load and unload ships in a port

Front 4

variant

Back 4

A modification to one of the Incoterms codified by the International Chamber of Commerce. Variants are generally used to further clarify the responsibilities of the exporter and of the importer in a given transaction.

Front 5

ExWorks (EXW)

Back 5

the seller fulfills his obligations by having the goods available for the buyer to pick up at his premises or another named place (i.e. factory, warehouse, etc.). Buyer bears all risk and costs starting when he picks up the products at the seller’s location until the products are delivered to his location. Seller has no obligation to load the goods or clear them for export.

Front 6

Free Carrier (FCA):

Back 6

the seller delivers the goods export cleared to the carrier stipulated by the buyer or another party authorized to pick up goods at the seller’s premises or another named place. Buyer assumes all risks and costs associated with delivery of goods to final destination including transportation after delivery to carrier and any customs fees to import the product into a foreign country.

Front 7

Carriage Paid To (CPT):

Back 7

seller clears the goods for export and delivers them to the carrier or another person stipulated by the seller at a named place of shipment. Seller is responsible for the transportation costs associated with delivering goods to the named place of destination but is not responsible for procuring insurance.

Front 8

Carriage and Insurance Paid To (CIP):

Back 8

seller clears the goods for export and delivers them to the carrier or another person stipulated by the seller at a named place of shipment. Seller is responsible for the transportation costs associated with delivering goods and procuring minimum insurance coverage to the named place of destination.

Front 9

Delivered at Terminal (DAT):

Back 9

seller clears the goods for export and bears all risks and costs associated with delivering the goods and unloading them at the terminal at the named port or place of destination. Buyer is responsible for all costs and risks from this point forward including clearing the goods for import at the named country of destination.

Front 10

Delivered at Place (DAP)

Back 10

seller clears the goods for export and bears all risks and costs associated with delivering the goods to the named place of destination not unloaded. Buyer is responsible for all costs and risks associated with unloading the goods and clearing customs to import the goods into the named country of destination.

Front 11

Delivered Duty Paid (DDP):

Back 11

seller bears all risks and costs associated with delivering the goods to the named place of destination ready for unloading and cleared for import.

Front 12

Free Alongside Ship (FAS):

Back 12

seller clears the goods for export and delivers them when they are placed alongside the vessel at the named port of shipment. Buyer assumes all risks/costs for goods from this point forward.

Front 13

Free on Board (FOB):

Back 13

seller clears the goods for export and delivers them when they are onboard the vessel at the named port of shipment. Buyer assumes all risks/cost for goods from this moment forward

Front 14

Cost and Freight (CFR):

Back 14

seller clears the goods for export and delivers them when they are onboard the vessel at the port of shipment. Seller bears the cost of freight to the named port of destination. Buyer assumes all risks for goods from the time goods have been delivered on board the vessel at the port of shipment

Front 15

Cost, Insurance, and Freight (CIF):

Back 15

seller clears the goods for export and delivers them when they are onboard the vessel at the port of shipment. Seller bears the cost of freight and insurance to the named port of destination. Seller’s insurance requirement is only for minimum cover. Buyer is responsible for all costs associated with unloading the goods at the named port of destination and clearing goods for import. Risk passes from seller to buyer once the goods are onboard the vessel at the port of shipment.

Front 16

Incoterms stands for ___.

Back 16

Incoterms is the acronym for International Commerce Terms.

Front 17

The choice of the Incoterm is almost always the decision of the ___.

Back 17

exporter

Front 18

In terms of cost and responsibility, the easiest Incoterm for the exporter which is, in turn, the most difficult for the importer is ___.

Back 18

EXW - Eworks

Front 19

FOB is ___.

Back 19

a) Free On Board
b) an Incoterm that can be used for any merchandise
c) an Incoterm specifically designed for ocean transportation

Front 20

Electronic Data Interchange (EDI) has changed what issue in Incoterms?

Back 20

documentation of delivery

Front 21

Under the Cost, Insurance, and Freight Incoterm, ___.

Back 21

a) the exporter must pre-pay the insurance
b) the insurance must total at least 110 percent of the value of the goods
c) the exporter pays all shipping costs, except for inland freight

Front 22

Delivered at Frontier is an Incoterm designed specifically for ___.

Back 22

land transportation

Front 23

Under the Delivered Duty Unpaid Incoterm, unloading costs are borne by the ___.

Back 23

Unloading costs are borne by the importer.