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    INTL704-Mod-05-Activity Application of Incoterms M'21

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    Ecren KELEŞ
    The document discusses different Incoterms and their application through examples. It provides definitions and outlines responsibilities of buyers and sellers under various Incoterms like CIF, CIP, FOB, FCA. Multiple choice questions are used to illustrate when risk and costs transfer between parties. Diagrams label locations and shade areas of responsibility under different terms.

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    INTL704-Mod-05-Activity Application of Incoterms M'21

    Uploaded by

    Ecren KELEŞ
    505 views5 pages
    The document discusses different Incoterms and their application through examples. It provides definitions and outlines responsibilities of buyers and sellers under various Incoterms like CIF, CIP, FOB, FCA. Multiple choice questions are used to illustrate when risk and costs transfer between parties. Diagrams label locations and shade areas of responsibility under different terms.

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    The document discusses different Incoterms and their application through examples. It provides definitions and outlines responsibilities of buyers and sellers under various Incoterms like CIF, CIP, FOB, FCA. Multiple choice questions are used to illustrate when risk and costs transfer between parties. Diagrams label locations and shade areas of responsibility under different terms.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    505 views5 pages

    INTL704-Mod-05-Activity Application of Incoterms M'21

    Uploaded by

    Ecren KELEŞ
    The document discusses different Incoterms and their application through examples. It provides definitions and outlines responsibilities of buyers and sellers under various Incoterms like CIF, CIP, FOB, FCA. Multiple choice questions are used to illustrate when risk and costs transfer between parties. Diagrams label locations and shade areas of responsibility under different terms.

    Copyright:

    © All Rights Reserved
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    INTL 222-704

    Course Code:
    Course Name: Global Logistics

    Module 5: Activity: Application of Incoterms®

    1. If goods are being delivered under C terms (e.g. CIF Port of London England
    (Incoterms 2020©)) where does delivery take place?
    Buyer

    2. A delivery from Toronto to an inland point in France includes the following charges:

     Inland (at both ends) $200.00 per container


     Local delivery (at both ends) $250.00 per container
     Main carriage $4,000.00

    How much must be paid by the buyer under “C” Terms?

    $4450.00

    3. A seller in Montreal is shipping to the Port of Rotterdam and has a contract for main
    carriage of $3,000.00 per container. The buyer has a contract for $5,000.00 per
    container. Which Group (E, F, C, D) should be used?

    Group C

    4. Under D terms “foreign port”, who is responsible for the inbound local delivery (on
    carriage) to the customer, the seller or buyer?

    Seller

    5. Under F terms the main risk for loss or damage is:

    © 2020 CENTENNIALCOLLEGE.CA All rights reserved. 1


    INTL 704 CENTENNIAL COLLEGE Global Logistics

    a. Assumed by the carrier


    b. Assumed by the seller
    c. *Assumed by the buyer
    d. Shared by the seller and buyer

    © 2020 CENTENNIALCOLLEGE.CA All rights reserved. 4


    INTL 704 CENTENNIAL COLLEGE Global Logistics

    6. If goods are being delivered under FOB, how does the buyer know delivery
    happened on time and the goods are undamaged?
    Delivery can be tracking by bill of lading.

    7. Use the chart below to determine costs to the seller and buyer under E, D, F, C
    Terms.

    From the factory Local delivery by small truck $150


    to the distribution terminal
    From the terminal Inland by rail $2000
    to the port
    From the port overseas Main carriage by marine vessel $6300
    to the foreign port
    From foreign port to Inland by truck $95
    terminal in foreign city
    From terminal in foreign city Local delivery by truck $50
    to customer
    Total Costs

    Seller Buyer
    EXW Terms $0.00 $8595.00

    DAP Terms $8595.00 $0.00

    FOB Terms $ 2150.00 $6445.00

    CIP Terms $ 8545.00 +insurance $145.00

    © 2020 CENTENNIALCOLLEGE.CA All rights reserved. 4


    INTL 704 CENTENNIAL COLLEGE Global Logistics

    SHIPMENT A SHIPMENT B
    Origin: Shipper’s Plant Sherbrooke, Quebec Taipei, Taiwan
    Terminal & customs Quebec City, Quebec Taipei, Taiwan
    Port – seller’s side Halifax, NS Kaohsiung, Taiwan
    Port - buyer’s side Le Havre, France Vancouver, B.C.
    Terminal & customs Paris, France Victoria, B.C.
    Destination: Buyer’s warehouse Lyons, France Nanaimo, B.C.

    8. Use Shipment A (above) to illustrate CIF. Label the diagram (below) with the
    locations and shade the seller’s responsibilities.

    Sherbrooke, Quebec , Halifax, Le Havre, Paris, Lyons,


    Quebec II France
    Quebec NS France France
    ↓ ↓ ↓ II ↓ ↓ ↓
    C T C
    I (Seller’s Obligation min cargo cover)
    R R

    What is the full current Incoterm®?


    CIF, Le Havre, France, Incoterm® 2020

    What is unusual about this term?


    Risk and responsibility transfers at different places.
    Seller must purchase minimum coverage for the buyer.

    © 2020 CENTENNIALCOLLEGE.CA All rights reserved. 4


    INTL 704 CENTENNIAL COLLEGE Global Logistics

    9. Use Shipment B (above) to illustrate FCA terminal. Label the diagram (below) with
    the locations and shade the seller’s responsibilities.

    Taipei, Kaohsiung, Vancouver Victoria, Nanaimo,


    Taipei, Taiwan , B.C.
    Taiwan II B.C. B.C.
    Taiwan

    ↓ ↓ ↓ II ↓ ↓ ↓
    C T C
    I
    (Seller, No
    obligation)
    R R

    What is the full current Incoterm®?

    FCA Taipei, Taiwan (Incoterm® 2020)

    Why is this term great for a buyer of dangerous goods?


    Dangerous Goods declaration is provided by the buyer.
    The terms such as FOB or FAS, where we are responsible for the export clearance and
    have more visibility of the export transportation. This can give better chances of spotting
    something, not in line with the sales contract.

    © 2020 CENTENNIALCOLLEGE.CA All rights reserved. 4

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