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CDCS EXAM 2014 PREPARATION PROGRAM

CDCS Standard Questions on Incoterms® 2010

1. Under Incoterms® 2010 rule FCA when the goods are picked up at the seller’s premises, who is
responsible for the loading of the goods on the means of transport provided by the buyer?

A. The buyer
B. The carrier
C. The seller
D. None of the above

2. Which of the following statements best defines how the Incoterms® rules apply to domestic and
international contracts of sale?

A. Incoterms® rules become part of the contract of sale by express incorporation by the
seller and the buyer
B. Incoterms® rules become applicable to sellers and buyers when adopted by national
governments, as they represent global regulations
C. Incoterms® rules automatically become applicable to the international carriage of goods
between sellers and buyers as they represent international law
D. None of the above

3. At which point does risk transfer from seller to buyer under CIF (Named Port of Destination)
Incoterms® 2010?
A. At the seller’s premises, ready for loading
B. When delivered to the carrier at the port of loading
C. On board the vessel at the port of loading
D. On board the vessel at the destination port

4. According to the Incoterms® 2010 rule CIF the minimum amount of insurance cover required is:
A. the price provided in the contract
B. the price provided in the contract plus 10%
C. the price provided in the contract plus 110%
D. None of the above

5. Under which list of the Incoterms® 2010 rules has the seller the obligation to insure the goods?
A. FOB, CFR, FCA, CPT
B. CIF, CIP
C. CIF, CIP, DAP, DAT, DDP
D. CPT, CIF, CIP, DDP

6. In which of the Incoterms® 2010 rules there is no requirement for the seller to arrange the export
clearance of the goods?
A. DDP
B. DAT
C. FCA
D. EXW

7. Which of the following outlines the primary differences between ‘EXW Sellers Premises Incoterms®
2010’ and ‘FCA Sellers Premises Incoterms® 2010’?

A. FCA includes loading by the seller but not export clearance

B. FCA includes export clearance by the seller but not loading
C. FCA includes loading by the seller and export clearance
D. None of the above

8. Which party has the obligation under EXW to pay all applicable duties, taxes, as well as any cost of
carrying out customs formalities payable upon export.
A. Carrier

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B. Seller
C. Buyer
D. None of the above

9. Under the Incoterms® 2010 rules which party has an obligation to insure the goods under DDP?
A. Seller
B. Buyer
C. Carrier
D. None

10. In which of the Incoterms® 2010 rule, the buyer has no obligation to the seller to pay the cost of
any pre-shipment inspection that is mandated by the authorities of either the country of export or
import.
A. EXW
B. DAT
C. CPT
D. DDP

11. If the total amount on the seller’s invoice is USD100,000, which one of the following Incoterms®
2010 rules represents best value to a buyer based in Singapore.
A. USD 100,000 - FOB Rotterdam Port (Incoterms® 2010)
B. USD 100,000 - CFR Singapore Port (Incoterms® 2010)
C. USD 100,000 - CIF Singapore Port (Incoterms® 2010)
D. USD 100,000 - FAS Rotterdam Port (Incoterms® 2010)

12. If goods are packed in containers that will be transported on a ship with the cost of carriage paid
by the seller … which of the following Incoterms® rules is preferable for selection?
A. CPT
B. CFR
C. FCA
D. FOB

13. Which of the following most accurately reflect the concept of ‘DELIVERY’ as represented in the
Incoterms® 2010 rules.
A. Delivery = Risk Transfer from the Seller to the Buyer
B. Delivery = Issuance of transport document by the Carrier
C. Delivery = Goods handed over from the Seller to the Buyer.
D. Delivery = Goods handed over from the Carrier to the Buyer.

14. Under FCA if the named delivery place is the carrier’s export terminal in the country of export,
delivery occurs when:
A. the goods are placed at the disposal of the carrier or another person nominated by the
buyer unloaded at the export terminal
B. when the goods are placed at the disposal of the carrier or another person nominated by
the buyer on the seller’s means of transport ready for unloading.
C. the goods are handed over to the carrier
D. None of the above

15. Under DAP, the seller is responsible for:

A. Local transport in the country of export, export clearance, loading main transport and
import clearance
B. Local transport in the country of export, export clearance, loading main transport
C. Local transport in the country of export, export clearance, loading main transport and
unloading
D. Local transport in the country of export, export clearance, loading main transport and any
requisite transport to the point of delivery

16. Under Incoterms® 2010 rules DAT, the terminal:

A. Must be a road, rail or air terminal or container yard

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B. Must be a road, rail or air terminal, warehouse, container yard or quay
C. May be a road, rail or air terminal, warehouse, container yard or quay
D. May be a road, rail or air terminal or container yard

17. Under Incoterms® 2010 rules CPT, the seller delivers when the goods:
A. Are handed over to the carrier or another person nominated by the seller at the sellers
premises
B. Are handed over to the carrier or another person nominated by the seller at the agreed
place of delivery
C. Are handed over to the carrier or another person nominated by the seller at the port of
loading
D. Are handed over to the carrier or another person nominated by the seller at the carrier’s
appointed location

18. Which of the following statements are correct?

A. Under EXW (named place of delivery) Incoterms 2010, title or ownership of the goods
transfers from seller to buyer when the goods are placed at the disposal of the buyer at
the named place of delivery
B. Under EXW (named place of delivery) Incoterms 2010, title or ownership of the goods
transfers from seller to buyer when the goods reach the country of import
C. Incoterms 2010 rules do not deal with the transfer of property rights or ownership of the
goods
D. None of the above

19. Which of the following statements is correct under Incoterms® 2010 rules?
A. If the parties do not agree on a specific place of delivery, and several carriers are used for
the carriage, the risk passes when the goods have been delivered to the first carrier at a
place entirely of the seller’s choosing
B. If the parties do not agree on a specific place of delivery, and several carriers are used for
the carriage, the risk passes when the goods have been delivered to the first carrier at a
place entirely of the buyer’s choosing
C. If the parties do not agree on a specific place of delivery, and several carriers are used for
the carriage, the risk passes when the goods have been delivered to the first carrier at a
place entirely of the carrier’s choosing
D. None of the above

20. The seller is required to provide the buyer with a transport document in ‘C’ Terms under
Incoterms® 2010 rules. When the transport document is issued as a negotiable bill of lading that
has been issued in more than one original:

A. The seller must provide the buyer with al least one original
B. The seller must provide the buyer with one original
C. The seller must provide the buyer with all the originals
D. None of the above

21. Under DAT, the seller bears the risk until it places the goods at the disposal of the buyer:
A. On the arriving means of transport ready for unloading at the named terminal
B. Unloaded from the arriving means of transport at the named terminal
C. Unloaded from the arriving means of transport at the named place of destination
D. on the arriving means of transport ready for unloading at the named place of destination

22. Under DAP, delivery occurs when the seller places the goods at the disposal of the buyer:
A. On the arriving means of transport ready for unloading at a named place of destination
B. Unloaded from the arriving means of transport at the named place of destination
C. On the arriving means of transport ready for unloading at the named terminal
D. Unloaded from the arriving means of transport at the named terminal

23. Which of the following statements is correct?

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1. Under the Incoterms® rules starting with the letter C or D, it is for the buyer to make the
contract of carriage with the carrier.
2. Under the Incoterms® rule FOB ownership or property rights in the goods transfers from
seller to buyer when the goods are placed on board the vessel at the port of shipment.
3. Under EXW the seller delivers when it places the goods at the disposal of the buyer at the
seller’s premises loaded on the buyer’s collecting vehicle.
4. Under EXW the seller has an obligation to provide the buyer with the usual delivery
document.

A. (1) and (3)

B. All except (2)
C. (4) only
D. None is correct

24. Which of the following Incoterms reflects maximum obligation for the seller under Incoterms®
2010 rules?

A. EXW
B. CIF
C. DAT
D. DDP

25. Which of the following Incoterms reflects minimum obligation for the seller under Incoterms®
2010 rules?

A. EXW
B. CIF
C. DAT
D. DDP

26. Which of the following Incoterms reflects maximum obligation for the buyer under Incoterms®
2010 rules?

A. EXW
B. CIF
C. DAT
D. DDP

27. Which of the following Incoterms reflects minimum obligation for the buyer under Incoterms®
2010 rules?

A. EXW
B. CIF
C. DAT
D. DDP

28. Which of the following statements is correct?

1. In all of the Incoterms® 2010 rules the seller has an obligation to provide the buyer with
a commercial invoice.
2. Under the Incoterms® 2010 rules any document referred to in the obligations of the
seller (A1-A10) or the obligations of the buyer (B1-B10) may be an equivalent electronic
record if agreed between the parties or it is customary for such issuance.
3. When CPT, CIP, CFR or CIF are used, the seller fulfils its obligation to deliver when it
hands over the goods to the carrier in the manner specified in the chosen rule and not
when the goods reach the named port of destination or place of destination.
4. There are two means of delivery in the Incoterms® 2010 rules FCA.

A. (1) and (3)

B. All except (2)

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C. (4) only
D. All are correct

29. All of the following statements under Incoterms 2010 rules are correct EXCEPT

A. Under EXW, the buyer has to assume the obligations with respect to export as well as
import
B. Under all F-terms, the seller should do what is necessary to clear the goods for export
C. Under all C-terms, the seller assumes the obligation with respect to export and the buyer
assumes the obligation with respect to import
D. Under all D-terms, the buyer should do what is necessary to clear the goods for import

30. Under Incoterms 2010 rules, risk transfers from the seller to the buyer_

A. When the contract of sale gets concluded

B. When goods are handed over to the main carrier
C. When goods are received by the buyer
D. At the point of delivery

31. How many terms of Incoterms 2010 may be used when intended mode of shipment is by sea?

A. 04
B. 07
C. 11
D. 13

32. Which of the following statements is correct under Incoterms 2010 rules?

I. Risk transfers from the seller to the buyer at the point of delivery in all terms
II. Cost transfers from the seller to the buyer at the point of delivery in all terms
III. In all D-terms import formalities are on the seller
IV. In DAT, the seller keeps the goods ready for unloading at the place of destination

A. (I) only
B. (I) and (II)
C. All except (IV)
D. All
33. Which of the following terms are applicable for any mode or modes of transport under Incoterms
2010 rules?

I. FCA
II. FAS
III. CFR
IV. CIP

A. (I) and (III) only

B. (I) and (IV) only
C. All except (II)
D. None
34. Which of the following Incoterms is correctly described?

Incoterms Main Carriage Import PSI mandated by

Formalities the exporting
country
A. EXW Buyer Buyer Seller
B. FOB Seller Buyer Seller
C. CPT Seller Buyer Seller
D. DDP Seller Buyer Seller

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