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Q1. Use the chart below to determine costs to the seller and buyer under E, D, F, C Terms.

From the factory to the distribution terminal	Local delivery by small truck	$150
From the terminal to the port	Inland by rail	$2000
From the port overseas to the foreign port	Main carriage by marine vessel	$6300
From foreign port to terminal in foreign city	Inland by truck	$95
From terminal in foreign city to customer	Local delivery by truck	$50
Total Costs

	Seller	Buyer
EXW Terms
DAP Terms
FOB Terms
CIP Terms

Q2.

	SHIPMENT A	SHIPMENT B
Origin: Shippers Plant	Sherbrooke, Quebec	Taipei, Taiwan
Terminal & customs	Quebec City, Quebec	Taipei, Taiwan
Port sellers side	Halifax, NS	Kaohsiung, Taiwan
Port - buyers side	Le Havre, France	Vancouver, B.C.
Terminal & customs	Paris, France	Victoria, B.C.
Destination: Buyers warehouse	Lyons, France	Nanaimo, B.C.

Use Shipment A (above) to illustrate CIF. Label the diagram (below) with the locations and shade the sellers responsibilities.

II

C	T					C
	I
R						R

a. What is the full current Incoterm?

b. What is unusual about this term?

Q3. If goods are being delivered under C terms (e.g. CIF Port of London England (Incoterms 2020)) where does delivery take place?

Q4. A delivery from Toronto to an inland point in France includes the following charges:

• Inland (at both ends) $200.00 per container
• Local delivery (at both ends) $250.00 per container
• Main carriage $4,000.00

How much must be paid by the buyer under C Terms?

Q5. A seller in Montreal is shipping to the Port of Rotterdam and has a contract for main carriage of $3,000.00 per container. The buyer has a contract for $5,000.00 per container. Which Group (E, F, C, D) should be used?

Q6. Under D terms foreign port, who is responsible for the inbound local delivery (on carriage) to the customer, the seller or buyer?

Q7. Under F terms the main risk for loss or damage is:

1. Assumed by the carrier
2. Assumed by the seller
3. *Assumed by the buyer
4. Shared by the seller and buyer

Q8. If goods are being delivered under FOB, how does the buyer know delivery happened on time and the goods are undamaged?

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