ITT Exercises - Freight Transportation.pdf

9 incoterms 2010 are divided into four main groupings

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9. Incoterms ® 2010 are divided into four main groupings. What are they? Group E: least responsibility for the seller. Group F: main transportation is always for the buyer. Group C: both inland and main freight are for the seller and included in the price of the goods. Group D: both inland and main freight are for the seller and included in the price of the goods. 10. Name the 2 divisions for the rules under Incoterms ® 2010. 1. Rules for any mode or modes of transport. 2. Rules for sea and inland waterway transport. 11. Name the terms that fall under the rules for any mode or modes of transport. EXW, FCA, CPT, CIP, DAT, DAP and DDP. 12. Name the terms that fall under the rules for sea and inland waterway transport. FAS, FOB, CFR and CIF. 13. Describe the following terms: EXW (Ex Works): Ex Works means that the seller delivers when it places the goods at the disposal of the buyer at the seller’s premises or at another named place (i.e. , works factory, warehouse, etc.). The seller does not need to load the goods on any
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Answers Terms of Trade Page | 194 2017 collecting vehicle, nor does he need to clear the goods for export, where such clearance is applicable. CIP (Carriage and Insurance Paid to): “C IP “ means that the seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed upon between the parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination. The selle r also contracts for insurance cover against the buyer’s risk of loss or damage to the goods during the carriage. The buyer should note that under CIP the seller is required to obtain insurance only on minimum cover. Should the buyer wish to have more insurance protection, it will need either to agree as much expressly with the seller or to make its own extra insurance arrangements. DAT (Delivered At Terminal): “D AT ” means that the seller delivers when the goods, once unloaded from the arriving means of transport, are placed at the disposal of the buyer at a named terminal at the named port or place of destination. Terminal includes any place, whether covered or not, such as a quay, warehouse, container yard or road rail or air cargo terminal. The seller bears all risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination. DAP (Delivered At Place): “D AP ” means that the seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination. The seller bears all risks involved in bringing the goods to the named place. CIF (Cost, Insurance and Freight): “C IF ” means that the seller delivers the goods on board the vessel or procures the goods already so delivered. The risk of loss of or damage to the goods passes when the goods are on board the vessel. The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination.
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  • Fall '18
  • Jane Smith
  • freight forwarder, Commercial item transport and distribution, CIFFA, Ocean Transportation Intermediary

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