Exercises练习
I.True or False
1.The exporter is not obliged to cover insurance if the deal is under Incoterms DAP,but he/she is if under CIF.( )
2.The exporter should cover the insurance under DPU for his/her own benefits.( )
3.In Incoterms 2020,“delivery”means sending the cargo to the importer’s premise.( )
4.Under CIP,the exporter must pay the freight and insurance premium and bear all the risks until the goods reach the destination.( )
5.The common feature of an FOB contract and an FAS contract is that the exporter must load the goods on a named ship.( )
6.DPU requires the exporter to unload the cargo,while DAP and DDP do not.( )
7.EXW,DAP,DPU and DDP can be used for neighboring countries within a free trade area.( )
8.Since Incoterms rules are widely known in the trade,an international sales contract is based on Incoterms 2020 by default,without the need to make refrence to it every time we sign a contract.( )
9.An international contract is legally binding on the importer and the exporter,while the Incoterms is not.( )
10.Now that Incoterms 2020 takes effect,Incoterms 2010 is no longer valid.( )
II.Multiple Choice Questions
1.Under CIP and CPT,the responsibility of booking shipping space or chartering a vessel should be taken by( )respectively.
[A]exporter/exporter [B]exporter/importer
[C]importer/importer [D]importer/exporter
2.Among Incoterms 2020 rules,which rule represents the biggest obligation for the exporter?( )
[A]EXW. [B]CIF. [C]DPU. [D]DDP.
3.What’s the major difference between FOB and FAS?( )
[A]The boundary of risk division.
[B]The party responsible for space booking or ship chartering.
[C]The party responsible for export clearance.
[D]The party responsible for import clearance.
4.Which one of the following is a shared feature of CPT and CFR?( )
[A]The exporter takes charge of arranging for carriage from the loading port to the unloading port and paying the sea freight.
[B]The importer assumes all risks when the cargo is in transit.
[C]The risk shifts with the completion of cargo delivery.
[D]The exporter assumes all risks until the cargo reaches destination.
5.Which Incoterms 2020 rule requires the exporter to be responsible for unloading the goods?( )
[A]DPU. [B]DAP. [C]DDP. [D]CIP.
6.Which Incoterms 2020 rule is more appropriate for goods transported in containers?( )
[A]FAS. [B]FOB. [C]CIF. [D]CIP.
7.Which Incoterms 2020 rule doesn’t require the exporter to load the goods?( )
[A]EXW. [B]FCA. [C]CPT. [D]CIP.
8.Which Incoterms 2020 rule requires the exporter to cover the cargo as per Institute Cargo Clause A?( )
[A]CIP. [B]CIF. [C]CPT. [D]CFR.
9.Which Incoterms 2020 rule obliges the exporter to cover the goods with insurance?( )
[A]DDP. [B]CIP. [C]DDU. [D]DAP.
10.Which Incoterms 2020 rule might pose difficulties for the exporter to clear customs?( )
[A]EWX and DDP. [B]FCA and DDP.
[C]EXW and FAS. [D]FCA and DPU.
III.Case Study
1.An Indian importer has placed an order of a certain kind of mother board under FCA(Guangzhou Airport).The exporter delivered the goods to the carrier at the airport as scheduled.The airline received the goods and issued the air waybill.So,the exporter asked the importer to make payment.However,at this time,the market price of the goods fell.The importer then refused to pay,saying that he hadn’t officially taken delivery and asked the exporter to have the goods shipped back home.This dispute resulted in a deadlock between the importer and exporter.Do you think the importer’s statement is justified?
2.A Russian customer ordered a batch of auto parts from an exporter in Northeast China who transported them to a place in Russia by rail under Incoterm DAP.When the goods arrived at the station and were unloaded,the importer found that the unloading charges were not paid and the quantity of goods was short,so the importer asked for adeduction of the unloading charges and of an amount equal to the shortage from the total amount.The exporter claimed that he had loaded the goods in the right quantity and supported his claim with a series of documents.He suspected that the goods were stolen in transit and therefore refused the importer’s request for a deduction and asked him to make a claim against the carrier.The questions are:(1)Is the importer’s request for the exporter to pay for unloading justified?(2)Who should make a claim against the carrier?
IV.Problems Solving
1.Suppose you quote for a special type of steel plate at $1,800 per metric ton CIF Manila to a customer in the Philippines,with insurance coverage at 110% of the invoice value and the premium rate at 0.8%.But the customer requires a quotation at CFR Manila.How much should you quote to meet the customer’s requirement?
2.Suppose you quote for a special type of steel plate at $1,800 per metric ton CIF Manila to a customer in the Philippines,with insurance coverage at 110% of the invoice value and the premium rate at 0.8%.But the customer requires an insurance coverage at 120% of the invoice value.How much should you quote to meet the customer’s requirement?
3.Suppose you have quoted a commission exclusive price for a wireless router at CIF $25 Manila,while the customer asks for a quotation of commission inclusive price at CIFC4.What is the CIFC4 price if you want to keep your original net revenue？
4.A Chinese business Nesco Steel Co.,Ltd.is negotiating a deal of exporting a batch of steel pipe to a Pakistani customer.The export quotation is CFR Karachi $ 840/MT,and the customer counter-offers at CIFC5 Karachi $ 880/MT(assuming a premium rate of 1.5% and an insurance markup of 10%).If the Chinese business wants to keep its net export income unchanged,can it accept the counter-offer?How much should it quote?