INCOTERMS EXAM QUESTIONS AND
ANSWERS
EXW - Ex Works - answer- the seller fulfills his obligations by having the goods
available for the buyer to pick up at his premises or another named place (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.
Free Carrier - FCA - answer- 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.
Carriage Paid To - CPT - answer- 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.
Carriage and Insurance Paid To - CIP - answer- 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.
Delivered at Terminal - DAT - answer- 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.
Delivered at Place - DAP - answer- 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.
Delivered Duty Paid - DDP - answer- seller bears all risks and costs associated with
delivering the goods to the named place of destination ready for unloading and
cleared for import.
ANSWERS
EXW - Ex Works - answer- the seller fulfills his obligations by having the goods
available for the buyer to pick up at his premises or another named place (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.
Free Carrier - FCA - answer- 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.
Carriage Paid To - CPT - answer- 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.
Carriage and Insurance Paid To - CIP - answer- 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.
Delivered at Terminal - DAT - answer- 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.
Delivered at Place - DAP - answer- 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.
Delivered Duty Paid - DDP - answer- seller bears all risks and costs associated with
delivering the goods to the named place of destination ready for unloading and
cleared for import.
