INCOTERMS Quiz

INCOTERMS tell us when ownership of the product changes hands.

False

If I want to ship my product to Canada by truck, FOB might be a great INCOTERM to use.

False

INCOTERMS are recognized around the world

True

If I don't want to use EXW, but still want to be responsible for the minimum amount, FCA is a good possibility.

True

If I use EXW as my INCOTERM, and the buyer doesn't properly clear the item for export, I can be fined $10,000, go to jail for 5 years, and possibly lose even more.

True

Using DAP, DPU, and DDP terms might complicate your life so they should be used sparingly.

True

Using the C terms (CFR, CIF, CPT) means you the seller will pay the freight until it reaches the foreign port.

True

EXW is the best and easiest INCOTERM to use.

False

FCA should only be used when shipping things by Boat.

False

I need to include the destination as well as the INCOTERM when I am using an INCOTERM

True