INCOTERMS rules and groups of agreements they contain

INCOTERMS, short for International Commercial Terms, are a set of

standardized rules established by the International Chamber of Commerce
(ICC) that define the responsibilities and obligations of buyers and sellers in
international trade. These rules play a crucial role in facilitating smooth
transactions by providing a common language and understanding of the
tasks, costs, and risks associated with the delivery of goods.

There are currently 11 INCOTERMS rules, each representing a distinct set

of responsibilities for the buyer and seller. These rules are categorized into
two main groups:

Rules for Any Mode of Transport (Group D):

EXW (Ex Works)
FCA (Free Carrier)
CPT (Carriage Paid To)
CIP (Carriage and Insurance Paid To)
DAP (Delivered at Place)
DPU (Delivered at Place Unloaded)
DDP (Delivered Duty Paid)

Rules for Sea and Inland Waterway Transport (Group F):

FAS (Free Alongside Ship)
FOB (Free On Board)
CFR (Cost and Freight)
CIF (Cost, Insurance, and Freight)
Each rule within these groups defines specific obligations related to the
delivery, transportation, and associated costs. For example, FOB indicates
that the seller is responsible for delivering the goods on board the vessel
nominated by the buyer at the named port of shipment.

Test Question:
What does the INCOTERM "EXW" stand for in international trade
agreements?
A) Ex Warehouse
B) Ex Works
C) Exporter's World
D) External Warranty

Answer:
B) Ex Works