Question

23

If you are the exporter (seller) of one container seriously damaged in a wreckage on a ship going from Barcelona Port to the port New York. Which would be the incoterm that would NOT exempt you of any responsibility and risk in regard to the deterioration of the merchandise? Select one: a. DÁP b. I want to leave the question blank c. FOB d. CIF e. FAS

Answer 1

FAS stands for Free alongside Shipment which means seller clears the goods for export and delivers them when they are placed alongside the vessel at the named port of shipment. From this point buyer assumes all risks and costs for goods has been forward. Option E is correct.

DAP stands for Delivered at Place which means seller clears the goods for export and bears all risks and costs associated with delivering the goods to the named place of destination not unloaded. From the time when goods starts unloadin the buyer is responsible for all costs and risks associated with it.

FOB stands for Free on Board which means seller clears the goods for export and delivers them when they are on board the vessel at the named port of shipment and from this moment buyer assumes all risks and cost for goods forward.

CIF stands for Cost, Insurance and Freight which means Seller clears the goods for export and delivers them when they are on board the vessel at the port of shipment and selllers bears the cost of freight and insurance to the named port of destination.