SCMT 3643 Exam 3 Questions with Verified Solutions Graded A+
Terms of Sale: - Answers The assignment of the responsibilities (so many options International
Chamber of Commerce) and liability between the seller and buyer while preparing the shipment
and moving products between an agreed origin and destination.
EXW: Ex-Works - Answers a. Used for any transportation mode
b. Obligations of the exporter are:
1. Place goods at the disposal of the buyer
2. Package the goods
3. Assist in export clearance procedures, if needed
c. Delivery occurs when goods are ready for pick-up at the seller's location
d. Importer responsible:
1. Arranging and paying for export clearance
2. All aspects of the transportation and terminal charges
3. Customs clearance
FAS: Free Along Ship - Answers a. Only Used for ocean transportation
b. Exporter is responsible for:
1. Arranging and paying for packing the good
2. Transporting goods to the port of export
3. Unloading at holding area of port of export
4. Clearing the goods for exports
c. Delivery takes place when goods are unloaded at holding area (Port of export)
d. Importer responsible for all other costs:
1. Port Charges
, 2. Transportation
3. Customs Charges
FOB: Free on Board - Answers a. Only used for ocean transport
b. Exporter is responsible for:
1. All activities under FAS
2. Loading the goods onto the ship at the port of export
c. Delivery takes place when goods are loaded on the vessel
d. Importer responsible for all other costs:
1. International ocean transportation
2. Transportation to the final destination
3. Customs clearance
CFR: Cost & Freight - Answers a. Only used for ocean transport
b. Export is responsible for:
1. All costs under FOB
2. Paying for the ocean carriage
c. Importer responsible for all other costs
1. Transportation in the country of import
2. Customs charges
d. Delivery takes place when goods are loaded on the vessel
Terms of Sale: - Answers The assignment of the responsibilities (so many options International
Chamber of Commerce) and liability between the seller and buyer while preparing the shipment
and moving products between an agreed origin and destination.
EXW: Ex-Works - Answers a. Used for any transportation mode
b. Obligations of the exporter are:
1. Place goods at the disposal of the buyer
2. Package the goods
3. Assist in export clearance procedures, if needed
c. Delivery occurs when goods are ready for pick-up at the seller's location
d. Importer responsible:
1. Arranging and paying for export clearance
2. All aspects of the transportation and terminal charges
3. Customs clearance
FAS: Free Along Ship - Answers a. Only Used for ocean transportation
b. Exporter is responsible for:
1. Arranging and paying for packing the good
2. Transporting goods to the port of export
3. Unloading at holding area of port of export
4. Clearing the goods for exports
c. Delivery takes place when goods are unloaded at holding area (Port of export)
d. Importer responsible for all other costs:
1. Port Charges
, 2. Transportation
3. Customs Charges
FOB: Free on Board - Answers a. Only used for ocean transport
b. Exporter is responsible for:
1. All activities under FAS
2. Loading the goods onto the ship at the port of export
c. Delivery takes place when goods are loaded on the vessel
d. Importer responsible for all other costs:
1. International ocean transportation
2. Transportation to the final destination
3. Customs clearance
CFR: Cost & Freight - Answers a. Only used for ocean transport
b. Export is responsible for:
1. All costs under FOB
2. Paying for the ocean carriage
c. Importer responsible for all other costs
1. Transportation in the country of import
2. Customs charges
d. Delivery takes place when goods are loaded on the vessel
