If you work in the International logistics section in your company, you have to learn and understand about Incoterms first.
In this page, we will guide you to the better understanding of Incoterms with animation videos.
What this page and our video provide with you is not only the basic knowledge of Incoterms, but also the advantage and disadvantage of the terms from Shipper and Consignee point of view.
After you watch all videos, please try 25 questions about Incoterms below this page.
Major Incoterms – EXW/FOB/CFR/CIF/DDU/DDP
Incoterms is the mutual understanding and agreement of the trade condition between Shipper and Consignee. Actually, there are 11 types of Incoterms in INCOTERMS 2020, you don’t need to remember all first.
At the beginning, we recommend 6 major Incoterms to understand the over all image.
Incoterms EXW / Ex-Works
We explained about the feature of EXW. in EXW condition, Shipper has less risk of logistics. So what kind of situation you have to choose EXW? Please check the video.
Incoterms FOB and FCA
This is the explanation about Incoterms FOB and FCA. You will learn the advantage and disadvantage of these terms.
Incoterms Group C （CFR/CIF/CPT/CIP）
Many company use the term CFR and CIF for trading. It is the basic terms but you better to learn CPT and CIP in Group C together.
Incoterms Group D (DAP/DPT/DDP/DDU)
There was a big change in Group D with INCOTERMS2020 update. In the actual business, we still see the term DDU which was abolished in INCOTERMS2010. We explained about this issue in this video.
We prepared the 25 questions about INCOTERMS. These questions are from the video you already learned. Please try your knowledge and understanding about INCOTERMS.
#1. What is this Incoterm?
#2. What is this Incoterm?
#3. What is this Incoterm?
#4. What is this Incoterm?
#5. Who pays Duty/Tax in DDP?
#6. Which Incoterm does this picture show, the responsibility of Cost or Risk?
#7. Which Incoterm does this picture show, the responsibility of Cost or Risk?
#8. What is the advantage for the shipper in EXW?
#9. What is the advantage for the consignee in EXW?
#10. What is the disadvantage for the consignee in EXW?
#11. Where the responsibility of Cost and Risk does move from the Shipper to Consignee in FOB?
#12. Which Incoterm does this picture show?
#13. There is a company which import often from Japan. When this company import from Japan, which Incoterm give the benefit to the Shipper in Japan?
#14. There is a Thai company which import from USA first time. When this company import from USA, which Incoterm Consignee should propose to the Shipper for their benefit?
#15. What is the difference between CFR and CIF?
#16. If we use CFR, who pays for the insurance?
#17. In Incoterms Group C, which Incoterms suitable in “?” this picture?
#18. In CPT and CIP, where the responsibility of the Risk does move from the Shipper to Consignee?
#19. In CPT and CIP, until where does the Shipper take the responsibility of the cost ?
#20. What is the difference between CPT and CIP?
#21. Which Incoterm does not exist in INCOTERMS 2020?
#22. What does the Forwarder in export side have to be careful in DDP?
#23. What's in common between DAP and DDP?