TM3
  • 1. What is the full meaning of Incoterms?
A) International Commercial Terms
B) Incoming Commercial Terms
C) International Contract Terms
D) Imported Cargo Terms
  • 2. 1. What does ICC stand for in relation to Incoterms?
A) Import and Customs Commission
B) International Commercial Council
C) International Chamber of Commerce
D) International Cargo Corporation
  • 3. 3. When were the current Incoterms rules officially released?
A) Incoterms 2015
B) Incoterms 2010
C) Incoterms 2023
D) Incoterms 2020
  • 4. 4. How many Incoterms rules are there in Incoterms 2020?
A) 11
B) 10
C) 8
D) 12
  • 5. 5. Which term refers to the cost of transport from the seller's premises to a designated point in the country of origin?
A) Destination Carriage
B) On-Carriage
C) Main Carriage
D) Pre-Carriage
  • 6. 6. "Main Carriage Pre-Paid" means:
A) Seller pays freight before departure and includes it in invoice price
B) Carrier pays the freight costs
C) Freight is split equally between buyer and seller
D) Buyer pays freight upon arrival
  • 7. 7. Which term means the main carriage is paid by the buyer upon arrival at destination and is NOT included in the seller's invoice price?
A) Freight Pre-Paid
B) Freight Collect
C) Freight Advanced
D) Freight Included
  • 8. 8. What does "On-Carriage" refer to?
A) Transport from origin port to destination port
B) Delivery within the seller's premises
C) Transport from port of discharge to buyer's warehouse
D) Transport from seller's warehouse to port
  • 9. 9. Which Incoterms revision introduced DPU to replace DAT?
A) Incoterms 2020
B) Incoterms 2010
C) Incoterms 2000
D) Incoterms 2015
  • 10. 10. What does "Multimodal Transport" mean?
A) Goods can be transported by multiple modes including air, sea, road, rail
B) Goods are transported only by sea
C) Goods are transported only by air
D) More than one carrier is used
  • 11. 11. Which group contains only one Incoterm — EXW?
A) Group II
B) Group IV
C) Group III
D) Group I
  • 12. 12. Which set belongs to Group II (FCA, FAS, FOB)?
A) Main carriage collect — buyer pays freight
B) Insurance always included
C) Delivery at buyer's premises
D) Main carriage pre-paid by seller
  • 13. 13. Which Incoterms belong to Group III (C-terms)?
A) DAP, DCP, DDP
B) DPU, DPA, DDP
C) DAT, DAP, DDP
D) DAP, DPU, DDP
  • 14. 15. Which Incoterms are intended for MARITIME/SEA transport ONLY?
A) All 11 Incoterms
B) FAS, FOB, CFR, CIF
C) FCA, CPT, CIP, DAP, DPU, DDP
D) EXW, FCA, CPT, CIP, DAP, DPU, DDP
  • 15. 16. Which Incoterms can be used for ANY mode of transport (multimodal)?
A) FAS, FOB, CFR, CIF
B) EXW, FCA, CPT, CIP, DAP, DPU, DDP
C) Only the D-group terms
D) Only EXW and DDP
  • 16. 18. Which group has the LEAST responsibility for the seller?
A) Group III — CFR
B) Group II — FCA
C) Group IV — DAP
D) Group I — EXW
  • 17. 19. Port-to-port insurance is included in the seller's invoice price under which Incoterms?
A) CIF and CIP
B) DAP and DDP
C) FOB and FCA
D) CPT and CFR
  • 18. 20. Under which Incoterms is freight collect (buyer pays main carriage)?
A) FCA, FAS, FOB, EXW
B) CPT, CFR, CIF, CIP
C) CPT, CIP, DAP
D) DAP, DPU, DDP
  • 19. 21. What does EXW stand for?
A) Ex Works
B) Exit Warehouse
C) Ex Warehouse
D) Export Work
  • 20. 22. Under EXW, where does the seller fulfill delivery obligation?
A) At seller's warehouse, factory, or premises
B) At the buyer's warehouse
C) At the port of shipment
D) At the destination country border
  • 21. 23. Who bears the risk of loss or damage to goods under EXW immediately after delivery?
A) Carrier
B) Seller
C) Buyer
D) Forwarder
  • 22. 24. Which formula correctly expresses the relationship between EXW and FOB?
A) EXW = FOB − O/C
B) EXW = CFR + FRT
C) EXW = FOB + O/C
D) FOB = EXW − O/C
  • 23. 25. Under EXW, who is responsible for export clearance and duties?
A) Carrier
B) Buyer
C) Seller
D) Customs broker
  • 24. 26. FCA stands for:
A) Forward Cargo Arrival
B) C. Freight Collect Arrangement
C) Free Carrier
D) Free On Arrival
  • 25. 27. What is the formula for FCA?
A) FCA = CFR + INS
B) FCA = EXW − O/C
C) FCA = EXW + O/C
D) FCA = CIF + FRT
  • 26. 28. Under FCA, when does risk transfer from seller to buyer?
A) When goods are handed over to the carrier
B) When goods arrive at destination
C) When goods leave seller's warehouse
D) When goods are loaded on the vessel
  • 27. 29. FAS means:
A) Forwarded At Ship
B) Free Alongside Ship
C) Freight Alongside Side
D) Free At Ship
  • 28. 30. Under FAS, the seller delivers goods:
A) To the buyer's warehouse
B) Alongside the vessel on the quay or in lighters
C) To the carrier's warehouse
D) On board the vessel
  • 29. 31. FOB stands for:
A) Free Over Board
B) Freight On Board
C) Free On Board
D) Forward On Board
  • 30. 32. Under FOB, risk transfers to the buyer when goods are:
A) Loaded on board the carrying vessel
B) Delivered to the port gate
C) Alongside the vessel
D) Cleared for export
  • 31. 33. Why are FCA, FAS, and FOB formulas the same in format but technically different?
A) Because they apply to different countries
B) Because they use different currencies
C) Because their "Other Charges (O/C)" differ based on delivery point
D) Because insurance requirements differ
  • 32. 34. FAS and FOB can be used only for:
A) Air transport
B) Road transport
C) Rail transport
D) Sea/maritime transport
  • 33. 35. CPT means:
A) Cost Per Term
B) Carriage Paid To
C) Carriage Paid Through
D) Cost Paid To
  • 34. 36. CIP means:
A) Cargo Insurance Policy
B) Carriage Inclusive Premium
C) Carriage and Insurance Paid To
D) Cost Insurance Paid
  • 35. 37. CPT formula is:
A) CPT = FOB + FRT
B) CPT = EXW + INS
C) CPT = CIF − O/C
D) CPT = FCA + FRT
  • 36. 38. CIP formula is:
A) CIP = CPT + INS
B) CIP = FOB + FRT
C) CIP = CFR + INS
D) CIP = CPT − INS
  • 37. 39. CFR stands for:
A) Carriage Freight Rate
B) A. Cost and Freight
C) Cargo Freight Rate
D) Cost For Resale
  • 38. 40. CFR formula is:
A) CFR = CIF + INS
B) CFR = FCA + FRT
C) A. CFR = FOB + FRT
D) CFR = EXW + O/C
  • 39. 41. CIF means:
A) Cost Insurance and Freight
B) Cost Inclusive Freight
C) Carriage Insurance Freight
D) Cargo Insurance and Freight
  • 40. 42. CIF formula is:
A) CIF = EXW + FRT
B) CIF = CFR − INS
C) CIF = FOB + FRT + INS
D) CIF = CPT + INS
  • 41. 43. Under CIF, the seller pays for:
A) Both freight and insurance
B) Freight only
C) Insurance only
D) Neither freight nor insurance
  • 42. 44. DAP means:
A) Delivered After Payment
B) Destination Arrival Point
C) Delivery At Port
D) Delivered At Place
  • 43. 45. DPU means:
A) Delivered Port Unloading
B) Delivered At Place Unloaded
C) Delivery Point Unpacked
D) Destination Port Unloaded
  • 44. 46. Which statement about D-terms is TRUE?
A) DAP includes unloading at destination
B) DDP means buyer pays all duties
C) DPU means goods are delivered unloaded at destination
D) D-terms are only for sea transport
  • 45. 47. Under CMO 43-93, whenever other dutiable charges are NOT shown separately in the invoice, how are they treated?
A) They are deemed already included in the FOB value
B) They are added as a separate tax
C) They are excluded from customs value
D) They are deducted from the EXW value
  • 46. 48. What does "Other Charges (O/C)" include under Incoterms 2020?
A) Import duties and taxes at destination
B) Incidental expenses like export docs, inland freight, duties, and inspection fees
C) Main carriage freight only
D) Port-to-port insurance only
  • 47. Which statement about insurance under Incoterms 2020 is correct?
A) Insurance is always optional for both parties
B) All C-terms include insurance
C) CIF and CIP are the only terms where seller includes insurance in the invoice
D) Buyer never needs insurance under any term
  • 48. DDP differs from DAP and DPU because:
A) DDP includes payment of import duties and taxes by the seller
B) DDP includes main carriage
C) DDP includes port-to-port insurance
D) DDP is for sea transport only
  • 49. Under which Incoterm does risk transfer to the buyer when goods are delivered to the FIRST carrier (not at the port)?
A) FAS
B) CPT
C) FOB
D) CFR
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