Quiz Chapter 6 Terms of Trade or Incoterms Rules

Quiz Chapter 6 Terms of Trade or Incoterms RulesWhich Incoterms® Rule shares a delivery point with the FOB Incoterms® Rule? Cost and Freight. Carriage and Insurance Paid To. Free Alongside Ship. No Incoterms® Rule shares a delivery point with the FOB Incoterms® Rule. Carriage Paid To. - correct answer Cost and Freight. The FOB, CFR, and CIF Incoterms® Rule share the same delivery point; when the goods are loaded onto the ship. The Cost, Insurance, and Freight Incoterms® Rule is specifically designed for ocean transportation. True False - correct answer True Under the Free On Board Incoterms® Rule, if a piece of cargo breaks loose while it is loaded onto the ship, but before it is loaded onto the ship, it becomes the responsibility of the exporter. the importer. the stevedore. the shipping line. the harbor master. - correct answer the exporter. If the cargo is damaged prior to being onboard the ship, it is the responsibility of the exporter. Which Incoterms® Rule(s) requiring the exporter to pay import duty? FCA. CIP. DAP. EXW. DDP. - correct answer DDP. Only DDP (Delivered Duty Paid) requires the exporter to pay duty. Under the CIF Incoterms® Rule, the proof of delivery is an ocean bill of lading or a sea waybill. True False - correct answer True Under the Cost, Insurance, and Freight Incoterms® Rule, the insurance must total at least 110 percent of the value of the goods. the importer pays all shipping costs, including on-carriage. the importer must pre-pay the insurance. the exporter controls the goods until their arrival in the port of destination. the importer pre-pays for international carriage. - correct answer the insurance must total at least 110 percent of the value of the goods. Under CIF, the exporter must pre-pay the insurance, which must total at least 110 percent of the value of the goods. The exporter pays all shipping costs, except for on carriage, which is to the importer's account. Under the CPT Incoterms® Rule, the bill of ____________________ can act as a proof of delivery from the carrier. - correct answer Lading Under the Cost, Insurance, and Freight Incoterms® Rule, the importer takes responsibility for the goods when they arrive at the importer's port. False