Philippine Society of Customs Administration Students

The Official Student Body Organization for Customs Administration Students

Mezzanine Floor, UC Customs Building, Sanciangko St., Cebu City
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INCOTERMS
2020
(TOPIC 3)

ARNOLD S. LIBRADO, LCB

INCOTERMS 2020
DELIVERY
 INCOTERMS 2020
(DELIVERY)

SELLER’S WAREHOUSE OR FACTORY

EXW
 INCOTERMS 2020
(DELIVERY)

CUSTODY OF THE CARRIER

FCA, CPT, CIP

 FCA, CPT, CIP
(DISTINCTION)
FREIGHT INSURANCE

FCA BUYER BUYER

CPT SELLER BUYER

CIP SELLER SELLER

 INCOTERMS 2020
(DELIVERY)

ALONGSIDE THE VESSEL OR LIGHTER

FAS
 INCOTERMS 2020
(DELIVERY)

ON BOARD THE VESSEL

FOB, CFR, CIF

 FOB, CFR, CIF
(DISTINCTION)
FREIGHT INSURANCE

FOB BUYER BUYER

CFR SELLER BUYER

CIF SELLER SELLER

 INCOTERMS 2020
(DELIVERY)

BUYER’S WAREHOUSE OR FACTORY

DAP, DPU, DDP

 DAP
(DISTINCTION)
DESTINATION OTHER CHARGES:
Destination Total Handling Charges (THC) / Less Container Load Charges (LCL)
Destination Inland Freight/Trucking/Haulage (On-Carriage)
Destination Internal Insurance
Destination Unloading Charges at Buyer’s Warehouse
Import Documentation and Clearance
Import Duties and Taxes
 DPU
(DISTINCTION)
DESTINATION OTHER CHARGES:
Destination Total Handling Charges (THC) / Less Container Load Charges (LCL)
Destination Inland Freight/Trucking/Haulage (On-Carriage)
Destination Internal Insurance
Destination Unloading Charges at Buyer’s Warehouse
Import Documentation and Clearance
Import Duties and Taxes
 DDP
(DISTINCTION)
DESTINATION OTHER CHARGES:
Destination Total Handling Charges (THC) / Less Container Load Charges (LCL)
Destination Inland Freight/Trucking/Haulage (On-Carriage)
Destination Internal Insurance
Destination Unloading Charges at Buyer’s Warehouse
Import Documentation and Clearance
Import Duties and Taxes
 1
The seller deliver the goods to the custody of the
carrier.

The seller paid the freight charges and marine

insurance.
 2
The seller deliver the goods on board the vessel.

The buyer paid the freight charges and marine

insurance.
 LEVEL 1:
DETERMINE THE INCOTERM USED
 1

The seller was instructed by the buyer to

deliver the goods available in the seller’s
factory.
 2
The seller delivers the goods to the buyer’s
warehouse. The seller agreed to pay the import
duties and taxes including import documentation
and clearances.
 3

The seller agreed to deliver the goods to the

custody of a shipping line per request by the
buyer. The seller only paid the freight charges.
 4
The seller delivers the goods to the buyer’s
warehouse unloaded from the truck upon arrival in
the country of destination as instructed by the
buyer. The seller paid the freight charges.
 5
The seller was instructed by the buyer to deliver the
goods to the custody of a freight forwarder
nominated by the buyer. However, the seller did
NOT pay the freight charges and insurance cost.
 6

The seller delivers the goods on board

the vessel. The seller paid the freight
charges and insurance cost.
 7

The seller agreed to handover the goods to an

airline nominated by the buyer. The seller paid
the freight charges and insurance cost.
 8

The seller was instructed by the buyer to

load the goods on board the vessel. The
seller only paid the main carriage cost.
 9
The seller agreed to deliver the goods on board the
vessel as per request by the buyer. However, the
seller did NOT pay the freight charges and marine
insurance cost.
 10

The seller delivers the goods alongside the

vessel as instructed by the buyer. The seller did
NOT pay the freight charges and insurance cost.
 LEVEL 2:
DETERMINE THE INCOTERM WITH
PLACE/PORT OF DELIVERY
COUNTRY OF DESTINATION

FREIGHT PREPAID BY THE SELLER

CPT, CIP, CFR, CIF

DAP, DPU, DDP
 COUNTRY OF DESTINATION
A seller in Japan delivered the 1 x 20’ van on board
the vessel in Port of Osaka. The seller paid freight
charges and marine insurance. The buyer is in
Manila, Philippines.
 COUNTRY OF ORIGIN

FREIGHT COLLECT BY THE BUYER

EXW, FCA, FAS, FOB

 COUNTRY OF ORIGIN
A seller in China delivered the 1 x 20’ van on the
custody of carrier in Beijing, China. The buyer paid
freight charges and marine insurance. The buyer is
in Manila, Philippines.
 1
The seller in Tokyo, Japan was instructed by the
buyer in Cebu, Philippines to deliver the goods
alongside the vessel at the Port in Tokyo. The seller
did NOT pay the freight charges and insurance.
 2
The buyer in Manila instructed the seller in Busan,
Korea to load the goods on board the vessel at the
Port of Busan. The seller agreed to pay the freight
charges and insurance cost.
 3
The seller in Bangkok, Thailand agreed to deliver
the goods to Bangkok Airways per agreement with
the buyer in Manila, Philippines. The seller paid the
freight charges and insurance cost.
 4
The buyer in Malaysia instructed the seller in Cebu,
Philippines to deliver the goods in his warehouse at Kuala
Lumpur. The seller paid the freight charges but did NOT pay
the import duties and taxes and destination unloading
charges.
 5
The seller in Xiamen, China was instructed by the buyer in Davao,
Philippines to deliver the goods to the buyer’s warehouse in Davao
City. The seller paid the freight charges, destination terminal
charges, destination inland freight and insurance costs and
destination unloading charges upon arrival at the warehouse.
 6
The seller in Auckland, New Zealand was instructed
by the buyer in Cebu, Philippines to deliver the
goods on board the vessel at the Port of Auckland.
The seller only paid the main carriage cost.
 7
The buyer in Beijing, China instructed the seller in
Manila, Philippines to deliver the goods on board
the vessel at the Port of Manila. The seller agreed
NOT to pay the freight charges and insurance cost.
 8
The seller in Hanoi, Vietnam agreed to make available
the goods in his warehouse per agreement with the
buyer in Caloocan City, Philippines. The seller did NOT
pay the freight charges and insurance cost.
 9
The seller in Makati City agreed to handover the goods
to a freight forwarding firm in Quezon City as instructed
by the buyer in Bali, Indonesia. However, the seller did
NOT pay the freight charges and insurance cost.
 10
The buyer in Cebu instructed the seller in Jakarta,
Indonesia to deliver the goods to his warehouse in
Mandaue City. The seller paid the main carriage cost and
import duties and taxes including documentation and
clearance.
 LEVEL 3:
DETERMINE THE INCOTERM WITH
PLACE/PORT OF DELIVERY
 1
A shipment of 300 cartons of leather bags was delivered by the seller to
the custody of Korean Airlines located in Seoul, Korea. The seller handled
all the export documentation and clearances, paid the air freight charges
from origin to destination in Cebu, Philippines while the buyer secured the
insurance against loss or damages while in transit from origin to
destination. What INCOTERM was used by the seller?
 2
An importer in Osaka, Japan arranged with his seller in Philippines to
include in the seller’s quotation all expenses to be incurred in
bringing 1 x 20’ van on board the vessel at the Port of Manila. The
buyer paid the ocean freight charges and marine insurance premium
from Manila to Osaka. What INCOTERM was used by the seller?
 3
The seller delivered 100 boxes of assorted goods into the custody of a
carrier at his warehouse located at Naga City, Cebu. To meet the buyer’s
delivery schedule, the carrier was instructed by the seller to transport the
shoes to the airport and arrange with shipping lines for the main carriage
cost to be paid by the buyer upon arrival at Hamburg, Germany. What
INCOTERM was used by the seller?
 4
An importer in Mariveles, Bataan ordered 1 x 40’ van containing various hand
tools from a Chinese trader in Guangzhou, China. The seller was required by the
buyer to make the goods available at the buyer’s warehouse in Mariveles
already unloaded. The bill of lading indicated freight pre-paid and the buyer
secured marine insurance from a domestic surety firm and handled the import
customs clearing and duties and taxes. What INCOTERM was used by the seller?
 5
A seller in Bali, Indonesia delivered 500 cases of beer in cans on board
the vessel, not unloaded from delivery van, at the Port of Bali. The
buyer in Cebu instructed his seller to handle the loading of cargo into
the vessel including the pre-payment of ocean freight charges. The
buyer also opted to secured a marine insurance premium from a surety
firm in Cebu. What INCOTERM was used by the seller?
 6
A construction company in Canberra, Australia was offered by his seller in Naga
City, Cebu for the supply of 100 metric tons of asphalt. Seller’s quotation
included ocean freight charges and transportation of the goods from port of
destination to the buyer’s warehouse in Melbourne, Australia ready for
unloading. The buyer paid the marine insurance premium and import duties and
taxes and import clearance. What INCOTERM was used by the seller?
 7
A shipment of 500 boxes of medical herbs were delivered by a seller to
carrier’s warehouse located in Hanoi, Vietnam. The carrier transported the
goods to the Hanoi Airlines and they were subsequently loaded to an
aircraft calling at Manila, Philippines. The covering airway bill indicated
that the air freight charges were pre-paid by the seller and secured port-
to-port insurance. What INCOTERM was used by the seller?
 8
A seller in India was instructed by his buyer in Mandaue, Cebu to make
the 10 boxes of machineries available at his warehouse in Mumbai
ready for loading. The buyer hired the services of a carrier in Mumbai to
pick up the goods at seller’s warehouse and clear them for export then,
have them loaded on board the vessel while securing ocean freight
charges and marine insurance. What INCOTERM was used by the seller?
 9
The buyer in Davao required his seller in China to load into the next
available vessel 10 crates of automobile parts at Port of Shanghai,
China. Buyer wants the goods shipped out in such a way that he will
no longer required by the shipping lines to pay the ocean freight
charges and secure marine insurance. What INCOTERM was used by
the seller?
 10
A buyer in Cebu instructed his seller in Los Angeles, USA to deliver
the goods to the former’s warehouse in Toledo City. The seller’s
quotation includes ocean freight charges and origin and destination
other charges like inland freight and internal insurance. The latter
includes payment of import duties, taxes and other charges. What
INCOTERM was used by the seller?