Question
Q1. Use the chart below to determine costs to the seller and buyer under E, D, F, C Terms. From the factory to the distribution
Q1. Use the chart below to determine costs to the seller and buyer under E, D, F, C Terms.
From the factory to the distribution terminal | Local delivery by small truck | $150 |
From the terminal to the port | Inland by rail | $2000 |
From the port overseas to the foreign port | Main carriage by marine vessel | $6300 |
From foreign port to terminal in foreign city | Inland by truck | $95 |
From terminal in foreign city to customer | Local delivery by truck | $50 |
Total Costs |
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| Seller | Buyer |
EXW Terms |
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DAP Terms |
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FOB Terms |
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CIP Terms |
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Q2.
| SHIPMENT A | SHIPMENT B |
Origin: Shippers Plant | Sherbrooke, Quebec | Taipei, Taiwan |
Terminal & customs | Quebec City, Quebec | Taipei, Taiwan |
Port sellers side | Halifax, NS | Kaohsiung, Taiwan |
Port - buyers side | Le Havre, France | Vancouver, B.C. |
Terminal & customs | Paris, France | Victoria, B.C. |
Destination: Buyers warehouse | Lyons, France | Nanaimo, B.C. |
Use Shipment A (above) to illustrate CIF. Label the diagram (below) with the locations and shade the sellers responsibilities.
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II
C | T |
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I |
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R |
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| R |
a. What is the full current Incoterm?
b. What is unusual about this term?
Q3. If goods are being delivered under C terms (e.g. CIF Port of London England (Incoterms 2020)) where does delivery take place?
Q4. 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?
Q5. 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?
Q6. Under D terms foreign port, who is responsible for the inbound local delivery (on carriage) to the customer, the seller or buyer?
Q7. Under F terms the main risk for loss or damage is:
- Assumed by the carrier
- Assumed by the seller
- *Assumed by the buyer
- Shared by the seller and buyer
Q8. If goods are being delivered under FOB, how does the buyer know delivery happened on time and the goods are undamaged?
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