Incoterms

1. Which modes of transport can different Incoterms be applied to? Fill in the blanks with the capital letters denoting the modes of transport:

EXW - FCA- FAS - FOB- CFR - CIF - CPT -

CIP - DAF - DES - DEQ - DDU - DDP -

Use abbreviations: RO - road transport; RA - rail transport; S - sea transport; A - air transport (e.g.: RO; RA; A)

2. Explain the meaning of Incoterms on the picture below. Name 4 groups of Incoterms. Point out which type of transport they are valid for:

   Table

Incoterms 2000: Transfer of risk from the seller to the buyer

CIF transport & insurance paid

CFR transport paid

FOB loading destination DES

The seller port port The buyer

First carrier

FAS DAF

DEQ

EXW FCA frontier DDU

transport paid

CPT DDP

transport & insurance paid

CIP

3. Translate information and fill in the table:

Jane Long at Transworld arranged four different export consignments of different goods to different destinations. The cost of each was different and the terms were different. From the information below, can you complete the table and answer the questions?

CONSIGNMENT
DESTINATION	Athens
PRICE
TERMS		FOB

1. The motorbikes cost £1,000. They were not sent ex works.

2. The consignment which cost £2,000 was sent C+F Hamburg.

3. The Greek consignee arranged and paid directly for all his own transportation and insurance costs.

4. Jane had to arrange the insurance and some of the transportation costs for the consignment of typewriters to Rome.

5. The shoes cost £2,000 more than the Portuguese consignment and £1,000 less than the typewriters.

Questions: 1) How much did the stationery cost? ...................

2) Which consignment was sent to Lisbon? ..........