INCOTERMS CHAPTER 6 | YOUR SHORTCUT TO
SUCCESS | TRUSTED, TESTED, AND TRUE!
Incoterms Rules stands for - Answer: International Commerce Terms
The document that corresponds clearly to the transfer of responsibility for a Free Carrier
shipment is the receipt given by the carrier to the exporter. This receipt can be - Answer:
ALL OF THE ABOVE; (a sea waybill, an air waybill, a multi-modal bill of lading)
Delivered at Place is an Incoterms Rule designed specifically for - Answer: It can be
used for any means of transportation
The only Incoterms Rule which requires the importer to clear the merchandise for export
from the country from which it is coming is - Answer: Ex-Works
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.
- Answer: Importer
The choice of the Incoterms® Rule is almost always the decision of the - Answer:
exporter
One of the differences between the Delivered At Terminal Rule 2010 (Delivered at
Place, Unloaded, since 2020) and the Delivered At Place Incoterms Rule - Answer: The
unloading costs are borne by the exporter under DAT and by the importer under DAP.
Under the Cost, Insurance, and Freight Incoterms Rule, - Answer: The insurance must
total at least 110 percent of the value of the goods.
Certain countries do not allow importers to purchase insurance abroad. Which Incoterm
is therefore not available to importers located in these countries? - Answer: CIP
1
APPHIA - Crafted with Care and Precision for Academic Excellence.
, FOB is - Answer: ALL OF THE ABOVE: (Free on Board; an Incoterms Rule that can be
used for any merchandise; and Incoterms Rule specifically designed for ocean
transportation.)
Under the Incoterms Rule FOB, responsibility for the cargo - Answer: Shifts from
exporter to importer when the goods are loaded onto the ship in the country from which
the goods are leaving.
The choice of a proper Incoterms Rule is a critical decision because - Answer: ALL OF
THE ABOVE: (It can be an integral part of export strategy; it is linked to the level of
customer service the firm is attempting to provide; it can be a competitive advantage)
The Incoterms Rule EXW specifies what regarding delivery? - Answer: It lets the
exporter decide when the goods are delivered
In terms of cost and responsibility, the easiest Incoterms® Rule for the exporter which
is, in turn, the most difficult for the importer is - Answer: Ex-Works (EXW)
Among the following, the most customer-friendly Incoterms Rule is - Answer: DAP
In a quote which includes multiple Incoterms Rules, so that the customer can choose,
the Incoterms Rule that has the highest invoiced amount is - Answer: DDP
Incoterms Rules determine - Answer: Which tasks will be performed by the exporter.
Which Incoterms Rule(s) require the exporter to pay import duty? - Answer: DDP
Under the Free On Board Incoterms Rule, if a piece of cargo breaks loose while it is
loaded onto the ship, it becomes the responsibility of - Answer: the exporter
2
APPHIA - Crafted with Care and Precision for Academic Excellence.
SUCCESS | TRUSTED, TESTED, AND TRUE!
Incoterms Rules stands for - Answer: International Commerce Terms
The document that corresponds clearly to the transfer of responsibility for a Free Carrier
shipment is the receipt given by the carrier to the exporter. This receipt can be - Answer:
ALL OF THE ABOVE; (a sea waybill, an air waybill, a multi-modal bill of lading)
Delivered at Place is an Incoterms Rule designed specifically for - Answer: It can be
used for any means of transportation
The only Incoterms Rule which requires the importer to clear the merchandise for export
from the country from which it is coming is - Answer: Ex-Works
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.
- Answer: Importer
The choice of the Incoterms® Rule is almost always the decision of the - Answer:
exporter
One of the differences between the Delivered At Terminal Rule 2010 (Delivered at
Place, Unloaded, since 2020) and the Delivered At Place Incoterms Rule - Answer: The
unloading costs are borne by the exporter under DAT and by the importer under DAP.
Under the Cost, Insurance, and Freight Incoterms Rule, - Answer: The insurance must
total at least 110 percent of the value of the goods.
Certain countries do not allow importers to purchase insurance abroad. Which Incoterm
is therefore not available to importers located in these countries? - Answer: CIP
1
APPHIA - Crafted with Care and Precision for Academic Excellence.
, FOB is - Answer: ALL OF THE ABOVE: (Free on Board; an Incoterms Rule that can be
used for any merchandise; and Incoterms Rule specifically designed for ocean
transportation.)
Under the Incoterms Rule FOB, responsibility for the cargo - Answer: Shifts from
exporter to importer when the goods are loaded onto the ship in the country from which
the goods are leaving.
The choice of a proper Incoterms Rule is a critical decision because - Answer: ALL OF
THE ABOVE: (It can be an integral part of export strategy; it is linked to the level of
customer service the firm is attempting to provide; it can be a competitive advantage)
The Incoterms Rule EXW specifies what regarding delivery? - Answer: It lets the
exporter decide when the goods are delivered
In terms of cost and responsibility, the easiest Incoterms® Rule for the exporter which
is, in turn, the most difficult for the importer is - Answer: Ex-Works (EXW)
Among the following, the most customer-friendly Incoterms Rule is - Answer: DAP
In a quote which includes multiple Incoterms Rules, so that the customer can choose,
the Incoterms Rule that has the highest invoiced amount is - Answer: DDP
Incoterms Rules determine - Answer: Which tasks will be performed by the exporter.
Which Incoterms Rule(s) require the exporter to pay import duty? - Answer: DDP
Under the Free On Board Incoterms Rule, if a piece of cargo breaks loose while it is
loaded onto the ship, it becomes the responsibility of - Answer: the exporter
2
APPHIA - Crafted with Care and Precision for Academic Excellence.
