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