Pricing terms Exam 24 Questions with Verified Answers,100% CORRECT

Pricing terms Exam 24 Questions with Verified Answers INCO terms - CORRECT ANSWER International Commercial Terms - published by International Chamber of Commerce Listed by category F - CORRECT ANSWER Refers to sh ...

Pricing terms Exam 24 Questions with Verified Answers INCO terms - CORRECT ANSWER International Commercial Terms - published by International Chamber of Commerce Listed by category F - CORRECT ANSWER Refers to shipment where the primary cost of shipment is not payed by the seller C - CORRECT ANSWER Shipment where the seller pays for shipping E - CORRECT ANSWER Sellers responsibility is full filled once the goods are ready to depart from their facility E - CORRECT ANSWER EXW- ex works F - CORRECT ANSWER 1. FCA- Free carrier 2. FAS- free alongside ship 3. FOB- Freight on board C - CORRECT ANSWER 1. CFR- COST ON FREIGHT 2. CIF- cosas insurance and freight 3. CPT - CARRIAGE paid to 3. CIP- carriage and insurance paid to D - CORRECT ANSWER 1. DAF- Deliver at frontier 2. DES- delivered ex-ship 3. DEQ - delivered ex-quay 4. DDU - delivered duty unpaid 5. DDP- delivered duty paid FOB - CORRECT ANSWER 1. Supplier responsible for all charges until the goods have passed over to the port of shipment 2. Buyer contacts and pays for freight and bears all costs as soon as the goods reach the ship FOB Airport - CORRECT ANSWER FOA Airlines carrier used instead of ship carriers. Same as Fob C&F - CORRECT ANSWER Cost and freight 1. Seller agrees to pay cost and freight for loading,exporting and shipment charges 2. Buyer bears the risk of goods from the time they pass the ships rail at the port of shipment CIF - CORRECT ANSWER Cost freight insurance 1. Sellers price includes all charges- freight, insurance upto to the shipment port 2. From that point , buyer bears all costs CM - CORRECT ANSWER Cut and make 1. Buyer provides all materials to the supplier. Refers to the manufacturing cost CMQ - CORRECT ANSWER Cut, make , quota Skmilar to CM but the manufacturer supplies the quota as well CMT - CORRECT ANSWER Cut, make, trim buyer provides the fabric and the supplier makes the garments CMTQ - CORRECT ANSWER Cut make trim and quota Ex-ship - CORRECT ANSWER Supplier responsible for all costs until the goods reach the port of shipment where the documents are provided to the buyer Ex- works - CORRECT ANSWER Supplier delivers goods to the buyer at his premises, has minimum responsibility and doesn't provide docs until requested Delivered/landed duty paid - CORRECT ANSWER Seller bears risks and costs including duties and taxes. Maximum responsibility, has to clear goods for both import and export. Packing list - CORRECT ANSWER Document prepared by the seller that contains the list of contents in a package or a carton in the container. Including cubic measurement of the carton, weight, number, breakdown of goods by size/colour/quantity. Bill of lading (B/L) - CORRECT ANSWER Reciept for a consignment. Shipping company certifies that it has received the goods for transportation. - Evidence of a contract between shipper and shipping company - title deed which proves the ownership of the goods mentioned in the b/l Importance of b/l - CORRECT ANSWER 1. Negotiable doc which can be used to transfer ownership of goods 2. Evidence that the goods are shipped 3. In international trade where the Letter of Credit is arranged , a clean b/l is required by the banks before any payments will be made 4. A clean b/l states that the consignment is in a good condition when shipped and the carrier accepts the liability of delivering the goods in the same condition Airway bill (AWB) - CORRECT ANSWER An airway bill is a doc proof of the contract between the shipper and the carrier Commercial invoice - CORRECT ANSWER Business doc recording the sales of goods or services between 2 parties. Includes : 1. Date and authorised signature 2. A detailed description of the merchandise corresponding with description in loc 3. Weight, quantity, licence number, contract number etc requested in the local 4. Terms of delivery and payment (FOB/ CIF/ C&F) 5. Name of issuing bank and local number 6. The port of entry 7. Type of currency and exchange