Republic of the Philippines

City of Olongapo
GORDON COLLEGE
Olongapo City Sports Complex, East Tapinac, Olongapo City
Tel. No. (047) 224-2089 loc. 314

Learning task for Module 1

1. Create at least 5 example scenarios for each 11-incoterm indicating the correct incoterm
to be used.

EXW / EX WORKS
1. There was a contact between exporter from Dubai and a buyer from manila with the
agreed terms of placing the goods at the warehouse at Makati, the buyer agreed to
shoulder all expenses, the exporter shall only place the goods at the said place.
2. A buyer from Davao asked an exporter from Afghanistan to deliver the goods in his
warehouse at a location stated in the contract and the former is said to pay for the
expenses incurred.
3. Buyer from ABC Warehouse made a contract with a company from Canada to place the
goods at the buyer’s warehouse at a certain date and expected that the buyer itself will
handle all cost for bringing the goods to the final destination.
4. There is a new company here in the Philippines selling garments and the like, and for that
they need cheaper supplies, contracting with Thailand’s supplier of garments, they made
a pretty good deal thus, a contract is born as the company assumes all cost for the
delivery of the goods in their warehouse.
5. 143 Company is a new company, so for the procurement of their goods, they asked the
seller from a company in Australia to deliver their goods to their warehouse expecting
that it was the best decision to shoulder all costs.

FCA / FREE CARRIER AT

1. Shipper Andrei delivers the goods to the carrier but the purchase will procure the
unloading charges and export clearance are prepared by the shipper.
2. The seller delivers the goods to the pre-carrier arranged by the buyer. Takes all risks from
the port of loading to the port of entry in USA.
3. Seller X acquire in land freight to make the goods available to the carrier and ready for
export while the buyer assumes all other charges from the carrier’s premises to the port of
destination.
4. An importer from Davao bought 50 boxes of durian, the export made available at the
carrier’s premises, in addition, he also insured the export formalities but the former made
a payment for the insurance.
 Republic of the Philippines
City of Olongapo
GORDON COLLEGE
Olongapo City Sports Complex, East Tapinac, Olongapo City
Tel. No. (047) 224-2089 loc. 314

5. Seller HP delivers the goods to the carrier at the named place of delivery and responsible
for export formalities while the buyer procures the main carriage, other charges from the
carrier premises to the port of destination.

CPT / CARRIAGE PAID TO

1. Purchase ben asked exporter form Vietnam to deliver the goods to the carrier from the
port of loading to port of entry in the Philippines. The latter will be responsible for the
export clearance and freight.
2. Pedro delivers the goods to the carrier and cleared for export. The buyer is responsible for
the unloading charges at the port of entry, the former will then procure the freight.
3. A buyer asked the seller to deliver the goods at the carrier’s premises. The seller would
also be responsible for the cost of carriage from the port of loading up to the port of
destination as well as the export clearance while the buyer is responsible for the insurance
against the risk of loss.
4. Mr. Kirby had a transaction with Mr. Perez last night. Mr. Perez being the seller agreed to
clear the goods for export and delivered them to the carrier. He also incurred the risk and cost
associated with delivering the goods.
5. An exporter was asked to deliver 12000 pieces of tissues by the buyer. The goods are to
be delivered at the carrier’s premises. The exporter is also responsible to clear the goods
for export and pay for the cost of carriage from the port of loading up to the port of
destination. Insurance against the risk of loss is cater by the importer.

CIP / CARRIAGE AND INSURANCE PAID TO

1. The seller from japan delivers the goods at carrier’s place nominated by the buyer with
the former responsible for the payment of freight and insurance and buyer from South
Korea shall be responsible for the import formalities.
2. A business man from Europe ordered tuna from the Philippines. The seller of the tuna
delivers the goods to the carrier provided by the buyer. He also pays for the cost of
carriage as well as the freight. Import formalities are cater by the buyer.
3. Toni is an exporter of printers from China. He made the goods available at the carrier’s
factory to be cleared for export. His importer is from Indonesia and held responsible for
any cost that will be acquired for the importation of printers. Toni being the exporter shall
be responsible for the payment of freight and port to port insurance.
4. An importer from South Korea ordered 600 boxes of fresh oyster from an exporter in
Mindoro. The latter made his goods available at the carrier’s warehouse to be cleared for
export amounting to $14,000 together with the payment of freight and insurance from the
 Republic of the Philippines
City of Olongapo
GORDON COLLEGE
Olongapo City Sports Complex, East Tapinac, Olongapo City
Tel. No. (047) 224-2089 loc. 314

point of delivery up to the point of destination. The importer shouldered the cost acquired
for the importation.
5. Mr. Yang is an exporter of bedsheets from Sri Lanka. He made the goods available at the
carrier’s factory to be cleared for export. His importer, Mr. Tuangco from Pakistan held
responsible for the cost inquired in the importation of the said goods. Mr. Yang, being the
exporter caters the responsibility for the payment of freight and port to port insurance.

DAP / DELIVERED AT PLACE

1. A doctor from Canada sends 3000 pieces of facemasks to his family in Pangasinan. The
best way to get the goods at the destination was to ask a courier to deliver it the said
address. The facemasks were sent immediately since it was duty and tax free.
2. A seller of gold necklace from Dubai had a business with a reseller from the Philippines.
The former sent 1000 pieces of gold necklaces bearing the cost, risk, and responsibility
for the goods until it reaches the house of his reseller in Quezon.
3. A seller from Belgium delivered 2500 bottles of perfume to a warehouse in Makati. The
importer cleared the goods for import and prepared for the payment of duties ang taxes
amounting to $500.
4. Arnah is an OFW from Kuwait. Her balikbayan boxes are to be delivered to his parents’
house at Bataan by the DHL Global Forwarding. The said balikbayan boxes are duty, tax
and charge free.
5. 5 boxes of shoes bought by an OFW from Dubai were delivered at her sister’s house in
Leyte by the DHL Global Forwarding. The goods were free of charge as well as duties
and taxes.

DPU / DELIVERED AT PLACE UNLOADED

1. A shipper delivered 50 boxes of figurine to his purchaser. It was unloaded at his depot in
Cebu. The latter took to clear the goods for import and the applicable local taxes.
2. 4,000 bottles of alcohol were delivered at the disposal of the buyer by an exporter from
US. The latter procured all the risk involve in bringing the goods and unloading them.
The buyer paid for the applicable local taxes.
3. Marcelino and Antipolo left at night to deliver supplies to be delivered to their buyers
Castillejos and Subic. They paid for the freight and unloading charges while the latter
agreed to bear all remaining risk after the unloading.
4. An exporter from tarlac delivers the goods at the named place of buyer Jen and had the
goods unloaded at destination in Japan, the latter then pays for the import clearance.
 Republic of the Philippines
City of Olongapo
GORDON COLLEGE
Olongapo City Sports Complex, East Tapinac, Olongapo City
Tel. No. (047) 224-2089 loc. 314

5. Exporter from Bataan delivers the goods at the disposal placed agreed with the buyer and
is unloaded at the destination in Thailand. The buyer pays for all import clearance and
duties and taxes for import.

DDP / DELIVERED DUTY PAID

1. Exporter Krazy contracts carriage of goods until place of destination, Importer KS assists
with the Import clearance and pays all the cost until delivered.
2. Mr. Orfel wants to buy 60 sacks of rice from his seller Ms. Jea. The former asks the
exporter to deliver the goods while bearing the risks and costs at his warehouse in
Myanmar. Export clearance is prepared by Ms. Jea.
3. Ms. Sheba is expecting a delivery within this week from his exporter Mr. Tan. The 3500
boxes of orange are to be delivered at her warehouse in Carmen Bohol. Ms. Sheba will
cover the duties and taxes and other charges as well as the risks and cost to get the goods
at her warehouse.
4. Mr. Bean sold goods to Mr. Crabs. Agreed that Mr. Bean will be in charge for the goods
from the warehouse and will bring to destination at the nominated place, pays the duties
and taxes and prepared the export and import formalities.
5. An exporter from china delivers the goods to the Philippines at the named place of the
buyer. Import clearance is secured by the importer whereas the export clearance by the
exporter and pays the duties and taxes incurred.

FAS / FREE ALONGSIDE SHIP

1. Seller clears the goods for export and delivers them alongside the vessel nominated by
the buyer at the port of origin. The seller is responsible for all costs and risks to the goods
up to the point of delivery.
2. An exporter of sugar from the Philippines delivered the goods alongside the ship. The
importer bears all the risk from the port of loading with the freight amount of $110 to the
port of entry in Myanmar.
3. Mr. Yap had a transaction with Mr. Dela Cruz. Mr. Yap, the seller, delivered the goods
on the barge while the latter procured all the risk from the port of loading up to the port
of entry in Bangkok with a freight amounting to $368.
4. Seller clears the 50,000 cellphones from Vietnam for export and delivers them alongside
the vessel picked by the buyer at the port of origin. The buyer takes the responsibility for
the damages from that point up to the port of destination in the Philippines.
 Republic of the Philippines
City of Olongapo
GORDON COLLEGE
Olongapo City Sports Complex, East Tapinac, Olongapo City
Tel. No. (047) 224-2089 loc. 314

5. Seller of branded shirts from Bangladesh caters the responsibility of paying for all the
costs and risks to the goods from the port of origin which is alongside the vessel
nominated by the buyer up to the point of delivery.

FOB / FREE ON BOARD

1. Seller of branded shirts from Bangladesh caters the responsibility of paying for all the
costs and risks to the goods from the port of origin which is on board the vessel
nominated by the buyer up to the point of delivery.
2. Seller clears the 50,000 cellphones from Vietnam for export and delivers them on board
the vessel picked by the buyer at the port of origin. The buyer takes the responsibility for
the damages from that point up to the port of destination in the Philippines.
3. Mr. Yap had a transaction with Mr. Dela Cruz. Mr. Yap, the seller, delivered the goods
on board the vessel while the latter procured all the risk from the port of loading up to the
port of entry in Bangkok with a freight amounting to $368.
4. An exporter of sugar from the Philippines delivered the goods on board the ship. The
importer bears all the risk from the port of loading with the freight amount of $110 to the
port of entry in Myanmar.
5. Seller clears the goods for export and delivers them on board the vessel nominated by the
buyer at the port of origin. The seller is responsible for all costs and risks to the goods up
to the point of delivery.

CFR / COST AND FREIGHT

1. An exporter of steel from Taiwan agreed to arrange and deliver the goods on board the
vessel. He also agreed to clear the goods for export and pay for the freight while the
importer agreed to bear all the risk from that moment onwards. The buyer also procures
for the insurance in case of loss of or damage.
2. Shipper “L” delivers the goods on board the vessel and held responsible for the cost of
freight. Purchaser “E” procures for the insurance against loss or of damage.
3. A businessman in Japan transacted 10,000 umbrellas with a buyer from the Philippines.
The former delivered the items on board the vessel at port of Tokyo bound to port of
Manila and prepared for the export clearance while insurance was covered by the buyer.
4. The buyer from the Philippines purchased 3x40 frozen Chicken in Hong Kong. They
came up with an agreement that the obligation will be transferred to the buyer once the
seller place the goods on board the carrying vessel and freight prepaid were shown in the
Bill of Lading.
 Republic of the Philippines
City of Olongapo
GORDON COLLEGE
Olongapo City Sports Complex, East Tapinac, Olongapo City
Tel. No. (047) 224-2089 loc. 314

5. 123 Company in Singapore is scheduled to deliver 3000 testing kits on board the vessel
where goods will be bound to port of Manila, the importer pays for the insurance while
the rest is prepared by the exporter.

CIF / COST, INSURANCE AND FREGHT

1. An exporter delivers the goods on board the vessel. He also procures the marine
insurance and freight and prepares the formalities needed. All other charges will be
procured by the importer.
2. A sale of 500 boxes of banana was made between exporter “L” and importer “E”. The
exporter delivers the goods on board the vessel. He also procures the marine insurance
and freight and prepares the formalities needed. All other charges will be procured by the
latter.
3. An exporter of tiles from Japan agreed to deliver the goods on board the carrying vessel
and for the payment of freight and port to port insurance providing that the importer will
procure for all the necessary import formalities.
4. Goods were delivered on board the vessel by an exporter of surgical masks from China.
Marine insurance amounting to $1,125 was prepared by him together with payment for
the freight equivalent to $2,300. All other charges were procured by the importer.
5. Between exporter Benny and importer Endo, a deal of 500 cartons of apples was
completed. The products are delivered to the ship by the exporter. He also arranges for
sea insurance and freight, as well as the required documents. The latter will be in control
of all other charges.