Incoterms Quiz

What is the primary purpose of Incoterms?

• To regulate international shipping rates

• To communicate obligations, tasks, costs, and risks in goods transportation

• To establish currency exchange rates

• To set international trade tariffs

Which Incoterm places minimum responsibility on the seller?

• FOB

• CIF

• DDP

• EXW

In which year were Incoterms first published?

• 1953

• 1967

• 1936

• 1980

The Incoterms beginning with 'F' indicate:

• The seller pays for primary shipping

• The primary cost of shipping is not paid by seller

• The goods are ready to depart from facilities

• The shipper's responsibility ends at specific points

Which payment method is considered the most secure tool in international trade?

• Open Account

• Cash-in-Advance

• Letter of Credit

• Documentary Collection

What does CIF stand for?

• Carriage Insurance Free

• Cost, Insurance and Freight

• Commercial International Freight

• Carrier International Fee

In domestic trade, which payment term requires the buyer to pay upon delivery?

• Cash with Order

• Payment on Invoice

• Cash on Delivery

• Open-account terms

The DAP Incoterm means:

• Delivered and Paid

• Delivered at Port

• Delivered at Place

• Delivery at Point

Which document serves as a contract between the carrier and owner of goods?

• Commercial Invoice

• Bill of Lading

• Export License

• Certificate of Origin

What is the purpose of a Pro-forma Invoice?

• To declare goods at customs

• To request final payment

• To allow buyer review before actual shipment

• To certify product origin