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Questions and Answers
Which formula correctly represents the calculation of CIP using FCA?
Which formula correctly represents the calculation of CIP using FCA?
- CIP = FCA + O/C + INS
- CIP = FCA + FRT + CPT
- CIP = FCA + INS + FRT (correct)
- CIP = FCA + O/C + FRT
What does the formula CIP = EXW + O/C + INS + FRT include in its composition?
What does the formula CIP = EXW + O/C + INS + FRT include in its composition?
- Costs related to freight insurance and additional costs (correct)
- Costs related to liabilities and claims only
- Costs related to local delivery only
- Costs related to international transport only
Which of the following components is not included in the calculation of CIP as per any of the given formulas?
Which of the following components is not included in the calculation of CIP as per any of the given formulas?
- Other Costs
- Insurance
- Duty (correct)
- Freight
In the relationship CIP = CPT + INS, what does CPT stand for?
In the relationship CIP = CPT + INS, what does CPT stand for?
Which of the following combinations correctly represents the non-inclusion aspect of CIP calculations?
Which of the following combinations correctly represents the non-inclusion aspect of CIP calculations?
Which formula correctly represents the relationship involving CFR?
Which formula correctly represents the relationship involving CFR?
What is the correct equation for determining FCA from CPT?
What is the correct equation for determining FCA from CPT?
What is the correct formula for calculating DAP/DPU/DDP using FOB?
What is the correct formula for calculating DAP/DPU/DDP using FOB?
In which case is the formula FCA = EXW + O/C applicable?
In which case is the formula FCA = EXW + O/C applicable?
Which Incoterms are applicable for shipments by air or sea?
Which Incoterms are applicable for shipments by air or sea?
Which formula would you use to find FCA using CIP?
Which formula would you use to find FCA using CIP?
Which of the following formulas shows the relationship between CFR and CIF?
Which of the following formulas shows the relationship between CFR and CIF?
For shipments classified strictly as 'SEA ONLY', which terms are NOT applicable?
For shipments classified strictly as 'SEA ONLY', which terms are NOT applicable?
How is the DAP/DPU/DDP calculated when using EXW as the starting point?
How is the DAP/DPU/DDP calculated when using EXW as the starting point?
In what scenario would you use CFR in the context of DAP/DPU/DDP calculations?
In what scenario would you use CFR in the context of DAP/DPU/DDP calculations?
What is the correct formula for CPT that includes FCA?
What is the correct formula for CPT that includes FCA?
Which formula correctly represents CIF in terms of EXW?
Which formula correctly represents CIF in terms of EXW?
Which of the following formulas defines CIF in relation to FOB?
Which of the following formulas defines CIF in relation to FOB?
To find CPT using CIP, which operation is performed?
To find CPT using CIP, which operation is performed?
How does CIF relate to CFR in terms of insurance?
How does CIF relate to CFR in terms of insurance?
What is the relationship between XF and FAS according to the provided formulas?
What is the relationship between XF and FAS according to the provided formulas?
Which formula correctly represents the relationship between FOB and CFR?
Which formula correctly represents the relationship between FOB and CFR?
What is the equation for EXW in relation to CIF?
What is the equation for EXW in relation to CIF?
How is EXW defined in relation to CFR/CPT?
How is EXW defined in relation to CFR/CPT?
Which statement about the relationship between EXW and FOB is correct?
Which statement about the relationship between EXW and FOB is correct?
Flashcards
CIP (Carriage and Insurance Paid To)
CIP (Carriage and Insurance Paid To)
Buyer pays for transportation and insurance to a destination.
FCA (Free Carrier)
FCA (Free Carrier)
Seller delivers goods to a carrier at a named location.
CFR (Cost and Freight)
CFR (Cost and Freight)
Seller pays for transport to a named destination port.
DAP (Delivered At Place)
DAP (Delivered At Place)
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DPU (Delivered at Place Unloaded)
DPU (Delivered at Place Unloaded)
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DDP (Delivered Duty Paid)
DDP (Delivered Duty Paid)
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EXW (Ex Works)
EXW (Ex Works)
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FOB (Free On Board)
FOB (Free On Board)
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CPT (Carriage Paid To)
CPT (Carriage Paid To)
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CIF (Cost, Insurance, and Freight)
CIF (Cost, Insurance, and Freight)
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FAS (Free Alongside Ship)
FAS (Free Alongside Ship)
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Origin Costs (O/C)
Origin Costs (O/C)
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Freight (FRT)
Freight (FRT)
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Insurance (INS)
Insurance (INS)
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Destination Costs (Dest. O/C)
Destination Costs (Dest. O/C)
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Air/Sea Shipments
Air/Sea Shipments
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Sea-only shipments
Sea-only shipments
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EXW Calculation Variations
EXW Calculation Variations
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FOB Calculation Variations
FOB Calculation Variations
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CPT Derivation Methods
CPT Derivation Methods
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CIF Derivation
CIF Derivation
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Study Notes
INCOTERMS Formulas Overview
- CIP (Carriage and Insurance Paid to): Calculated as FCA + Insurance + Freight (INS + FRT) or as EXW + All Costs (O/C) + INS + FRT.
- Alternative representation: CIP = CPT + INS.
Key Formulas for FCA (Free Carrier)
- FCA (Free Carrier) combines elements of other terms: EXW + Origin Costs (O/C), or deducted from CPT (CPT - FRT).
- Additionally, FCA can be derived from CIP by accounting for insurance and freight: FCA = CIP - (INS + FRT).
Key Formulas for CFR (Cost and Freight)
- CFR integrates freight costs into the FOB formula: CFR = FOB + FRT.
- Alternative calculation: CFR can also be represented as EXW + O/C + FRT or CIF - INS.
Formulas for DAP/DPU/DDP (Delivered At Place/Delivered at Place Unloaded/Delivered Duty Paid)
- Calculations for these terms include all costs: DAP/DPU/DDP = EXW + Origin O/C + FRT + Destination O/C.
- Another perspective: DAP/DPU/DDP can also be calculated from FOB/FCA plus freight and destination charges or from CFR/CPT plus destination charges.
General Notes on Shipments
- Air/Sea shipments utilize terms EXW, FCA, and CPT.
- Sea-only shipments focus on terms EXW, FOB, and CFR.
Additional EXW Formulas
- EXW can also be expressed through various other terms depending on the context:
- EXW = FOB/FCA - O/C
- EXW = CFR/CPT - (O/C + FRT)
- EXW = CIF/CIP - (O/C + INS + FRT).
Additional References for FAS and FOB
- FAS (Free Alongside Ship) and FOB share similarities, both being calculated as EXW + O/C.
- For FOB specifically, other formulations are also relevant: FOB = CFR - FRT or FOB = CIF - (INS + FRT).
Forms of CPT (Carriage Paid To)
- CPT can be derived either via FCA + FRT or directly from EXW + O/C + FRT.
- It can also be expressed in relation to CIP by subtracting insurance: CPT = CIP - INS.
CIF (Cost, Insurance, and Freight)
- CIF incorporates costs of freight and insurance as additional elements to FOB: CIF = FOB + INS + FRT.
- Other forms: CIF = EXW + O/C + INS + FRT or CIF = CFR + INS.
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Description
Test your knowledge of Incoterms with this quiz focused on understanding the different formulas used, such as CIP, FCA, and CPT. Learn how costs, insurance, and freight terms apply to various shipping scenarios. Perfect for students or professionals involved in international trade.
