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EXW stands for Ex Works, where the seller's responsibility ends when the goods are made ____________
EXW stands for Ex Works, where the seller's responsibility ends when the goods are made ____________
available
FOB stands for Free On Board, where the seller's responsibility ends when the goods pass the ship's ____________
FOB stands for Free On Board, where the seller's responsibility ends when the goods pass the ship's ____________
rail
FAS stands for Free Alongside Ship, where the seller's responsibility ends when the goods are placed ____________
FAS stands for Free Alongside Ship, where the seller's responsibility ends when the goods are placed ____________
shipside
In INCOTERMS-2020, risk allocation is a crucial aspect where the parties must determine the point at which the risk transfers from the seller to the ____________
In INCOTERMS-2020, risk allocation is a crucial aspect where the parties must determine the point at which the risk transfers from the seller to the ____________
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Cost allocation is significant in INCOTERMS-2020 to specify who bears the costs related to the ____________ of goods
Cost allocation is significant in INCOTERMS-2020 to specify who bears the costs related to the ____________ of goods
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Under CIF - Cost, Insurance & Freight, the seller is responsible for contracting and paying for ____________ insurance
Under CIF - Cost, Insurance & Freight, the seller is responsible for contracting and paying for ____________ insurance
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Origin LCL Charges: the price for handling and transporting break-bulk or loose goods within a seaport in the ________ of origin.
Origin LCL Charges: the price for handling and transporting break-bulk or loose goods within a seaport in the ________ of origin.
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Destination LCL Charges: the price for handling and transporting break-bulk or loose goods within a seaport in the ________ of destination.
Destination LCL Charges: the price for handling and transporting break-bulk or loose goods within a seaport in the ________ of destination.
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Origin Terminal Handling Charges (THC): the price of handling and transporting containerized cargo within the seaport's terminal facilities in the ________ of origin.
Origin Terminal Handling Charges (THC): the price of handling and transporting containerized cargo within the seaport's terminal facilities in the ________ of origin.
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Destination Terminal Handling Charges (THC): the price of handling and transporting containerized cargo within the seaport's terminal facilities in the ________ of destination.
Destination Terminal Handling Charges (THC): the price of handling and transporting containerized cargo within the seaport's terminal facilities in the ________ of destination.
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Origin/Destination Other Charges (O/C) are incidental costs that the seller/exporter incurs in connection with carrying out his contractual responsibility to deliver the products for each of the incoterms (except for main carriage and port-to-port insurance).(Export documentation/clearance fees, forwarder's fees, THC/LCL charges, pre- and on-carriage fees, export/import duties and taxes, etc.) Carrier refers to the person actually transporting goods or in charge of or responsible for the operation of the means of transport.(e.g., shipping lines, airlines, NVOCC, freight forwarder, & logistics) The bringing of goods to a specified location or to a carrier/forwarder in the ________ of origin or destination is referred to as delivery, and it is used as a reference point when liability for loss or damage to the goods passes from seller to buyer.
Origin/Destination Other Charges (O/C) are incidental costs that the seller/exporter incurs in connection with carrying out his contractual responsibility to deliver the products for each of the incoterms (except for main carriage and port-to-port insurance).(Export documentation/clearance fees, forwarder's fees, THC/LCL charges, pre- and on-carriage fees, export/import duties and taxes, etc.) Carrier refers to the person actually transporting goods or in charge of or responsible for the operation of the means of transport.(e.g., shipping lines, airlines, NVOCC, freight forwarder, & logistics) The bringing of goods to a specified location or to a carrier/forwarder in the ________ of origin or destination is referred to as delivery, and it is used as a reference point when liability for loss or damage to the goods passes from seller to buyer.
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The bringing of goods to a specified location or to a carrier/forwarder in the country of origin or destination is referred to as ________, and it is used as a reference point when liability for loss or damage to the goods passes from seller to buyer.
The bringing of goods to a specified location or to a carrier/forwarder in the country of origin or destination is referred to as ________, and it is used as a reference point when liability for loss or damage to the goods passes from seller to buyer.
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In determining Incoterms, you must remember the following: The parties involved, the delivery point, the responsible party for the costs. EX WORKS (EXW) insert named place of delivery '______' denotes that the seller delivers when it places the items at the buyer's disposal at its location or at another specific location (factory, warehouse, etc.). The seller does not need to load the goods on any collecting vehicle and is not obligated to organize the export clearance. EXW may be suitable for domestic trade where there is no intention at all to export the goods. EXW represents the minimum obligation for the seller. The seller has no obligation to the buyer to make a contract of insurance or a contract of carriage. Mode of Transport: Multi-modal EX WORKS (EXW) insert named place of delivery The expense of any checking processes (such as quality checks, measuring, weighing, and counting) required to transport the products to the specified location is the seller's responsibility. EXW RISKS SELLER BUYER COSTS FORMULA: EXW = COST OF GOODS FREE ALONGSIDE SHIP (FAS) insert named port of shipment By saying 'Free Alongside Ship,' a seller agrees to deliver when the goods are placed next to the ship at the designated port of shipment. When goods are alongside the ship (on a quay/dock or barge/lighter, the risk of loss or damage falls to the buyer, and from that point onward, he is responsible for all charges.
In determining Incoterms, you must remember the following: The parties involved, the delivery point, the responsible party for the costs. EX WORKS (EXW) insert named place of delivery '______' denotes that the seller delivers when it places the items at the buyer's disposal at its location or at another specific location (factory, warehouse, etc.). The seller does not need to load the goods on any collecting vehicle and is not obligated to organize the export clearance. EXW may be suitable for domestic trade where there is no intention at all to export the goods. EXW represents the minimum obligation for the seller. The seller has no obligation to the buyer to make a contract of insurance or a contract of carriage. Mode of Transport: Multi-modal EX WORKS (EXW) insert named place of delivery The expense of any checking processes (such as quality checks, measuring, weighing, and counting) required to transport the products to the specified location is the seller's responsibility. EXW RISKS SELLER BUYER COSTS FORMULA: EXW = COST OF GOODS FREE ALONGSIDE SHIP (FAS) insert named port of shipment By saying 'Free Alongside Ship,' a seller agrees to deliver when the goods are placed next to the ship at the designated port of shipment. When goods are alongside the ship (on a quay/dock or barge/lighter, the risk of loss or damage falls to the buyer, and from that point onward, he is responsible for all charges.
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______ denotes that the seller delivers when it places the items at the buyer's disposal at its location or at another specific location (factory, warehouse, etc.)
______ denotes that the seller delivers when it places the items at the buyer's disposal at its location or at another specific location (factory, warehouse, etc.)
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In EX WORKS (EXW), the seller does not need to load the goods on any ______ vehicle
In EX WORKS (EXW), the seller does not need to load the goods on any ______ vehicle
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In EXW, the seller is not obligated to organize the ______ clearance
In EXW, the seller is not obligated to organize the ______ clearance
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______ represents the minimum obligation for the seller
______ represents the minimum obligation for the seller
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By saying 'Free Alongside Ship,' a seller agrees to deliver when the goods are placed next to the ship at the designated port of shipment. When goods are alongside the ship, the risk of loss or damage falls to the ______
By saying 'Free Alongside Ship,' a seller agrees to deliver when the goods are placed next to the ship at the designated port of shipment. When goods are alongside the ship, the risk of loss or damage falls to the ______
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Study Notes
Incoterms 2020
- Incoterms rules are a series of pre-defined commercial terms published by the International Chamber of Commerce (ICC).
- There are 11 different Incoterms rules, each abbreviated into a three-letter acronym.
Understanding Incoterms
- Incoterms are used to clearly communicate the tasks, costs, and risks associated with the transportation and delivery of goods.
- To determine Incoterms, you must consider the parties involved, the delivery point, and the responsible party for the costs.
Ex Works (EXW)
- "Ex Works" means the seller delivers when it places the goods at the buyer's disposal at its location or another specific location.
- The seller is not responsible for loading the goods on any collecting vehicle or organizing export clearance.
- EXW represents the minimum obligation for the seller.
- The seller is responsible for the expense of any checking processes required to transport the goods to the specified location.
- Mode of Transport: Multi-modal.
Free Alongside Ship (FAS)
- "Free Alongside Ship" means the seller delivers when the goods are placed next to the ship at the designated port of shipment.
- The risk of loss or damage falls to the buyer when the goods are alongside the ship.
- The buyer is responsible for all charges from that point onward.
- Origin LCL Charges: the price for handling and transporting break-bulk or loose goods within a seaport in the country of origin.
- Destination LCL Charges: the price for handling and transporting break-bulk or loose goods within a seaport in the country of destination.
- Origin/Destination Terminal Handling Charges (THC) and Other Charges (O/C) are incidental costs incurred by the seller/exporter.
Key Terms
- Main Carriage: amounts paid by the shipper to the carrier for the transportation of goods from the country of origin to the country of destination.
- Carrier: the person actually transporting goods or in charge of or responsible for the operation of the means of transport.
- Delivery: the bringing of goods to a specified location or to a carrier/forwarder in the country of origin or destination, marking the point when liability for loss or damage to the goods passes from seller to buyer.
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Description
Learn about the 11 international commercial terms, the risks for both sellers and buyers involved in the transportation of goods, and how incoterms impact duties and taxes. Understand the Incoterms rules set by the International Chamber of Commerce (ICC).
