6 Questions
What does ICC stand for in the context of Incoterms?
International Chamber of Commerce
Which category of Incoterms has the seller's responsibility ending at the port of destination?
C-terms
What is the purpose of Incoterms?
To define responsibilities of buyers and sellers in international trade
What is the main benefit of using Incoterms?
To provide a common language for buyers and sellers
What does the Incoterm DDP stand for?
Delivered Duty Paid
Which Incoterm has the seller's responsibility ending at the factory gate?
EXW
Study Notes
Incoterms Overview
- Incoterms are a set of three-letter trade terms published by the International Chamber of Commerce (ICC)
- They define the responsibilities of buyers and sellers in international trade, specifically regarding the delivery of goods
Incoterms Categories
- E-terms: Ex Works (EXW) - Seller's responsibility ends at the factory gate
- F-terms: Free Carrier (FCA), Free Alongside Ship (FAS), Free On Board (FOB) - Seller's responsibility ends at a specific point
- C-terms: Cost and Freight (CFR), Cost, Insurance, and Freight (CIF), Carriage Paid To (CPT), Carriage and Insurance Paid To (CIP) - Seller's responsibility ends at the port of destination
- D-terms: Delivered At Place (DAP), Delivered At Terminal (DAT), Delivered Duty Paid (DDP) - Seller's responsibility ends at the buyer's door
Key Incoterms
- EXW (Ex Works): Seller's responsibility ends at the factory gate
- FOB (Free On Board): Seller's responsibility ends when the goods are on board the ship
- CIF (Cost, Insurance, and Freight): Seller's responsibility ends at the port of destination, including insurance and freight
- DDP (Delivered Duty Paid): Seller's responsibility ends at the buyer's door, including customs clearance and duties
Incoterms Rules
- Incoterms rules apply to the sale of goods, not services
- Incoterms rules do not cover the transfer of ownership or title
- Incoterms rules do not cover the payment of goods
Benefits of Incoterms
- Clarity on roles and responsibilities in international trade
- Reduces misunderstandings and disputes
- Provides a common language for buyers and sellers worldwide
Learn about Incoterms, the standard trade terms published by the International Chamber of Commerce, and understand the roles and responsibilities of buyers and sellers in international trade. Get familiar with the different categories and rules of Incoterms and how they benefit international trade. Test your knowledge with this quiz!
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
