SCMT 3643 FINAL EXAM QUESTIONS
WITH VERIFIED ANSWERS. A+ GRADE
2025/2026.
What are INCOTERMS? - ANS The international commerce rules that decide who is
responsible for the transport of goods at each stage, the customs clearance and the risks
involved with international transportation
What is pre-carriage? - ANS Domestic transportation of exporting country
What is main carriage? - ANS The international transportation between the exporting
country and the importing country
What is on-carriage? - ANS The domestic transportation in the importing country
What rules do INCOTERMS formally define? - ANS Which tasks will be performed by the
exporter and importer
Which activities will be paid for by the exporter and importer
The exact point at which responsibility transfers from exporter to importer
Who maintains INCOTERMS? - ANS The ICC (international chamber of commerce)
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
, What factors are important when considering which INCOTERM to use? - ANS Type of
product being sold
Method of shipment
Ability and willingness of importer or exporter to perform tasks
Amount of trust in each party
Which four INCOTERMS can only be used for ocean transportation? - ANS FAS, FOB, CFR AND
CIF
In what situation would you want the supplier to perform all tasks for you (as the importer)? -
ANS When you know very little about the foreign market (the less you know the more
services you will want)
What are the three aspects of each INCOTERM? - ANS Scope: type of products for which it
can be used
Modality: mode of transport for which it can be used
Syntax: way it has to be stated on invoices and paperwork
What are the four families of INCOTERMS? - ANS E - everything (importer does everything)
F - free on board
C - carriage (main transportation leg)
D - delivery (exporter does everything)
What are the most common errors involved with INCOTERMS? - ANS Confusion with
domestic terms of trade
Confusion with older INCOTERMS
Improper use of the correct INCOTERM
Not specifying the rule version
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
WITH VERIFIED ANSWERS. A+ GRADE
2025/2026.
What are INCOTERMS? - ANS The international commerce rules that decide who is
responsible for the transport of goods at each stage, the customs clearance and the risks
involved with international transportation
What is pre-carriage? - ANS Domestic transportation of exporting country
What is main carriage? - ANS The international transportation between the exporting
country and the importing country
What is on-carriage? - ANS The domestic transportation in the importing country
What rules do INCOTERMS formally define? - ANS Which tasks will be performed by the
exporter and importer
Which activities will be paid for by the exporter and importer
The exact point at which responsibility transfers from exporter to importer
Who maintains INCOTERMS? - ANS The ICC (international chamber of commerce)
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
, What factors are important when considering which INCOTERM to use? - ANS Type of
product being sold
Method of shipment
Ability and willingness of importer or exporter to perform tasks
Amount of trust in each party
Which four INCOTERMS can only be used for ocean transportation? - ANS FAS, FOB, CFR AND
CIF
In what situation would you want the supplier to perform all tasks for you (as the importer)? -
ANS When you know very little about the foreign market (the less you know the more
services you will want)
What are the three aspects of each INCOTERM? - ANS Scope: type of products for which it
can be used
Modality: mode of transport for which it can be used
Syntax: way it has to be stated on invoices and paperwork
What are the four families of INCOTERMS? - ANS E - everything (importer does everything)
F - free on board
C - carriage (main transportation leg)
D - delivery (exporter does everything)
What are the most common errors involved with INCOTERMS? - ANS Confusion with
domestic terms of trade
Confusion with older INCOTERMS
Improper use of the correct INCOTERM
Not specifying the rule version
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
